S & P lowers U.S. credit rating – who should be blame for this American quagmire?


Saturday, 06 August 2011
Well, it has finally happened and Standard & Poor's has lowered for the first time, America's top credit rating from AAA to AA +.

The factors determining this has been attributed to the country's increased debt burden, budget deficits and what the Institute regards as increased political risk.

The downgrade was preceded by conflicting media reports with sources in the White House claiming that the S & P's analysis - as seen in advance - contained "serious amateur" shortcomings. According to sources, it was, inter alia, on incorrect calculations on billions of dollars.

For those of use watching the US from outside the USA hoping to learn a lot from the system, the disappointment in the way the American politics has shown since Obama came to power has been excruciating. The USA under Obama has been a disappointment not for Obama’s making but for how it is hard for a “black man” to manage something white people consider ‘their right only’ to manage. This is also despite lots of hypercritic comments and articulations from various sources.

Such a position is also held in the UK where there has been absolutely limited sympathy for Obama in the country. Listening to the radio, especially those leaning towards the right of the politics here, every commentator and pundit has come up and bash Obama in their own ways.


We are talking about a UK which saw its own economy crumble to almost nothing and where nothing is happening now in terms of economic growth. Prior to the current state of the UK economy no body said anything about the direction the economy was taking then. But today all gang up on Obama here – what a shame!

When Obama took a miserable economy from George W Bush, the economy was bleeding money – financing two wars, which Obama did not start. He knew that these wars were a drain to the economy and started working towards stopping them. The opposition, Republicans were against him.

He tried to fix the healthcare which according to top academics such as Michael Porter, Spear, Womack and others needed to be fixed. Since this colluded with the interest of big businesses, the opposition was again against the “Obama care”. That wasted lots of time and diverted attention elsewhere.

Obama was the first to notice that American production base was no longer there – that all producers had moved to Asia and that there were lots of loop holes in the tax system which made it had for the state to collect taxes and required resources. The Republic propagandists attacked him and called his policies “big government”.

Then came the raising of the American debt ceiling, something with both republicans and Democrats have done in the past. There could not be an agreement this time. The Republican rejected all attempts by the Obama administration to put a little bit of stimulus in the bill and all attempts to hold the highest earner and big corporations to pay back something to the economy in the form of taxes. Obama was forces to bend backwards and yield.

Today looking around there no boy showing some amount of sympathy to what Obama has attempted to achieve in the USA. Instead they are dancing in the bandwagon of the high sounding Republicans. 

It is not clear why Mr Obama can’t resign. Why should he not just give this thing back to some nice white guys who should be more intelligent enough to drive the economy the way it will be accepted? Many in the Republican Party don’t see Obama as a credible American and except otherwise, he should just not stand for next election.
By Team

Print this article

What do you think about this article? Would you like to leave a comment? It will be much appreciated. You can also rate this article.

  • Should be Empty:

Scandinavian Companies & Market Magazine
(C) 2010  Granscole Establishment Sweden AB. Registered in Sweden as a Media Company. Organisation Number: 556782-6572
F-Skatt (VAT) Number: SE556782657201