Obama responds to US downgrade
The president says the nation can pay its debts. What needs to change is the lack of political will in Congress.
S&P doesn't doubt the nation's ability to pay its debt, Obama said. But after witnessing a month of drama over raising the debt ceiling, the agency doubts the nation's political system's ability to act.
Obama quoted investor Warren Buffett, who recently said that he would give the United States a quadruple-A rating if there were one (AAA is the highest). Obama said he and most of the world's investors agree.
"We didn't need a rating agency to tell us that the gridlock in Washington over the last several months has not been constructive, to say the least," he said. He called our problems "imminently solvable" and said the markets continue to reaffirm U.S. credit as among the world's safest.
The challenge now, he said, is to tackle the deficits over the long term. That means combining spending cuts in defense and other areas with tax reform that asks people who can afford it to pay their fair share. That also includes "modest adjustments" to Medicare and other programs.
He said two things need to change: the lack of political will in Congress and the insistence on drawing lines in the sand.
Here are the first two things he said Congress should do when it returns from its break: extend the payroll tax cut and continue unemployment insurance for people who are looking for a job. Those are ideas that Republicans have agreed to, he added.
Obama said the United States has always had the best universities, the most innovative companies and the most productive workers. It's always had not just the capacity but the will to act.
"Markets will rise and fall, but this is the United States of America," he said. "No matter what some agency may say, we've always been and always will be a triple-A country."
There wasn't much obvious response to Obama's remarks in the markets. The Dow Jones Industrial Average dropped further after his speech, to a crushing loss of 500 points, but it was headed in that direction before he spoke.
They could and should have started this process last year. They haven't had a good budget for a few years now. Even when both the Senate and House were Democrat.
This is politics at its worse. Blame the other guy.
The best way for President Obama to "solve' this issue is to resign.
Clearly, '57 States' is the most clueless President in history! He wonders why no one will hire, this after shoving Obamacare down the throats of business. This program alone is responsible for a 1% increase in unemployment.
The country is heading down the wrong socialist path. Mr. Obama is a failed leader. He has ZERO plans. His budget could not even get a single Democrat vote in the Senate. It lost 97-0!
Mr. Obama is leading this country into a depression.
We need to fire 2500+ Donkeys next November. This is their economy...
Let's try Rep. Connie Mack's "1 percent Solution". Can't be any worse than what we've been doing.
Contact your Congressional leaders to put forward his plan.
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The solid report comes a month after the retailer closed all of its Canadian operations.
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