We are not suprised that the Chamber of Commerce is upset about the Standard and Poor's Downgrade of the US bonds. After all they were present at the creationo f the BeoHmer bill and that antics that broght this all on. Who was it who stood arm and arm whith Beohmer on no taxes? Without taxes-how can bonds be paid off?
And what the S &P essentially said was they didn't think the money was going to be there to pay off future bands-even if they were issued. The Treasury is obliged to disagree, citing a mis count in S & P's calculations of some $2 Trillion dollars.
S & P says that $2 trillion is chumps change in the economy-and it said "it's about 2% of the Us economy" That's an interisting obersvation. Especially since the Beohmer bill had $900 billion and $1.2 trillion in future cuts in thebill.
If it's only 2% of the whole economy what are we fighting about? I mean really? Isn't 2% a temeptest in a tea pot-to coin a phrase here (aplogies to the Tea Party). If it's only 2% why fight. More to the point-why downgrade if the amounts that low?
Our suspicion here is that S&P is trying to get back for all the free passes they gave in AAA credit ratings to designed to fail secrities in which they got the heat over.
but we are cynical too-the Chamber whines too much. They say for example they are for "tax reform". But the Chamber's own lobbyist never said a word about it in the tax negoiations. And when the Tea Party ccomplained that the taxes of some people could rise due to reform the Chamber never said loud and clear that this was necessary to promete competition. They never even bother to pretend of dust off theold Kemp Roth "grow you wayout" tax philosophy.
Instead they allowed the Tea party to create a lockstep against any tax reform at all. And you can't have tax reform without someon's rates going up.
So just how are the future Bush tax cuts-made with barrowed money-as alan Greenspan notes- going to be paid. No taxes means no wayto pay. And that why the downgrade occured.
For that the Chamber has no answer. And no realism.