Friday 5 August 2011

THEY WERE NOT AMUSED

The US Congress seems to have settled its debt ceiling problem. For now. But this is just the beginning of bigger problems.

The Representatives and Senators may feel they've done their bit for their friends (oops; I mean for their country). But how do the people of the country feel about the government of the people, by the rich, for the rich, and other political nonsense?

As the title says, not thrilled. Not by a long shot.

"How bad was the response?" you ask.

In a survey of Americans after the political brouhaha in the Capital, the people of the country have given Congress an 18 per cent approval rating. Only 18 percent. Meaning that 82 per cent were somewhere between "very displeased" and "as mad as hell, and I'm not going to take this any more!"

All this in the New York Times of August 4th.

So, the yaddering about the national debt level, which almost tipped the country into fiscal default, has given Congress the lowest approval rating on record. In light of the continuing recession, a lot of people are saying that job creation should be the priority. But that would have increased the debt, not reduced it.

And if the polling done for the Times is right, more than four people out of five who were surveyed thought that "debate" (a polite term for the "unfriendly verbal engagement") was more about trying to develop some kind of political advantage than about doing what the country really needed. And about three-quarters of those interviewed felt the "debate" had hurt the image of America around the world.

That, I guess, is the expense of "politicking." Of making sure your party "wins," whatever the outcome. Though I can hardly see how anyone could win anything meaningful in this situation.

And it showed how much trouble the Republican party will have with it's Tea Party set. Same for the Congress, overall.

There have been two major financial responses.

First, the Dow Jones has reported a sharp decline — basically meaning that many companies are worth a lot less. As are many people's stock portfolios. It's a Bear market. Over which this Bear has no control.

Second, Standard & Poor’s (the credit-rating agency) removed the US federal government from its list of risk-free borrowers. To put it in other terms, American bonds are a long way from being junk, but they are heading in that direction. S&P made the move because of its worry about the size of the government's long-term debt. Congress cut that debt by about $2.1 trillion; S&P would have preferred a decrease of about $4 trillion.

So, can you say "double-dip recession"? Sure you can.

And, while America has focused on its debt reduction debate, other factors have made the world economy even worse. I'll deal with those tomorrow.


9 comments:

  1. The president and Congress are rich folks who LOVE spending money...especially money that belongs to someone else.

    Any american who is in debt over their head is not helped by giving them more credit than they can responsibly handle.

    STEWARDSHIP of OUR money is not part of the congressional standard.

    While we are being told our $600 social security check is a "privilege" that must be cut, it is actually OUR money that Joe and I had taken from us during our lifetime and told it would be given back eventually.

    We've reached the age of "eventually" and receiving an allowance a teenager couldn't live on is being called a privilege.

    It's a PONZI scheme. They took it and when it was time to pay it back we found out that our privilege had been used by congress.

    There is no responsibility placed on congress and they are set for life with free medical care, protection, and retirement benefits paid for by US.

    Now THAT is called "privilege".

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  2. Yes, I agree. Bear for President. I think it is high time we had a Canadian as our president.
    Meanwhile, all we can do is take of ourselves because our government is no longer for the people.

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  3. ® cheshire wife: Um, actually Bear is a monarchist. But thanks for the "vote."

    ® beau's mom: Yes, sadly. Thanks.

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  4. I'm on a tight time schedule, so only glanced over your post today... but I have a few things to say...

    This country has cut back on public education, and financial aid for universities, thus creating an atmosphere in which only those who are already privileged or very strong willed will have opportunities to be successful. Then we don't want to provide services when they fail or don't make it.

    We have only been downgraded to an AA+, which is crazy.
    It's just like when I was working in the bank. The man with money could come in and get a huge loan with no payments for three years. At the end of three years, he could make an interest payment, and renew the loan. This could go on for years, with no sign of this man ever paying this huge loan off. I called them floaters. Then you have the average Joe come in. His credit is less than desirable, he's struggling to make it, now he needs a car loan so he can get to and from work. He doesn't get the loan, thus slimming his chances of success. The prosperous always prosper, and the strugglers always struggle to provide, because there is no balance.

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  5. As an English person, it seems to me that the trouble over there is just to discredit Obama. Shame on them! If only, if only, if only you could have the health system as we have it and if only you could realise that arguing achieves nothing. Perhaps, after today's news re the downgrading, the politicians will begin to see the enormity of the situation. It isn't about them and their own careers, it's about the whole country and that's a serious consideration.
    Rant over.
    ps did you hear the news over here of one of our adventuring teenagers and three of his friends being attacked by a polar bear in Norway? One lad died, then another shot the bear. I'm sorry for the lad and his parents and friends but surely the bears should have somewhere to live without interference?

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  6. Hi, Bear. My old eyes simply cannot read the comments section on this blog. Print too small and colour green on grey doesn't help.
    Not sure lavish spending was the problem. Recession of 2008 put the banks in trouble. Governments bailed out the banks and now the people have to suffer for it

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  7. ® Linda: Thanks so much for the confidence. But, no. If nominated I will not run; etc. I think Americans need to take back their country. Canadian Bears should support and encourage.

    ® Two Chicks: Thanks very much for sharing your insights. A very personal and professional perspective.

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  8. ® Star: Thanks for your thoughts. I hadn't heard of the lad being attacked by the Bear, but it was a sad day for both lad and Bear.

    ® Blog Fodder: Sorry about your reading ability; I've tried some adjustments. As for big spending, what do you think the bank bail out was?

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