Call the TEA Party Movement "a bunch of terrorists?" Here is their response. "WE TOLD YOU SO."

Standard & Poor lowered the credit rating of the United States from a AAA rating to a AA+ last night after many of you had gone to bed. The event marked the first time in nearly a hundred years the US credit rating has officially been viewed as problematic.

Here is a quote from the S & P pdf detailing their decision:

The outlook on the long-term rating is negative. We could lower the
long-term rating to 'AA' within the next two years if we see that less
reduction in spending than agreed to, higher interest rates, or new
fiscal pressures during the period result in a higher general government
debt trajectory than we currently assume in our base case.
Source: S & P pdf

From what I can gather, this downturn is more a political problem than a financial problem, contrary to all the doomsday talk on the part of Obama and his Democrat parrots. They have spent weeks scaring the blazes out of folks and, now, they are busy trying to play down the events of last night as they attempt to fix blame on others.

In the end, fault or not, this hurts Obama much more than "Congress." It happened on "his watch" and after nearly three years of pretending that he knew what he was doing, we have a very negative event on Friday night . . . . . . . . . . . . just weeks after Tim Geithner emphatically announced to the Established network media, "There is no danger of our credit rating being lowered . . . none." After a reading of the S & P explanation, we understand that S & P is most concerned with the dysfunctionality of Washington and our spending habits as a nation. When Obama took office, our debt was equal to 20% of our GDP. Today, two and half years into Obama, our debt measures 25% of our GDP. A healthy ratio is 18 to 20 percent. While Bush spent far more than we conservatives preferred, his debt to GDP was entirely manageable. Not so with today's Obama ratios. The man is so out of touch with fiscal realities that in his budget proposal of January, 2011, he did not outline any spending cuts whatsoever. In fact, his budget was so out of focus, that it received a 97 to 0 negative vote in the US Senate. He could not even find a Democrat janitor who supported his fiscal nonsense. That's a fact.

My wife and I have no credit cards. Our mortgage is a 30 year fixed rate note and we own our vehicles (two cars and a monster vxt 1800 man bike) outright. We do not own stock although my wife's mother has a significant part of her retirement (she is 80 plus) tied up in the Market.

Rates for home purchases will increase, some, but not drastically -- or so goes my theory. Understand that our economy does not need the pressure borne of this rate change, but it is not the end of the world. In fact, there are only two countries in the world who have a AAA rating - Norway and Germany.

Conservatives have been screaming their protest for years only to be called one childish name after another. And why the Democrat name calling? Well, they have nothing else to do. They do not understand Reality Economics.

Here is how the debate goes: Paul Ryan comes up with a detailed and publicly stated budget, cutting 6 trillion over 10 years and what is the Democrat response? "Oh yeh, your momma sucks big time !!" We are dealing with a Democrat Party politic that comes right off the grade school playground.

And,

We told you so.