S & P's Downgrade Targets Entitlements - by Stephen Lendman
A previous article discussed the dirty game, accessed through the following link:
It explained bipartisan support for incrementally ending Social Security, Medicare and Medicaid, no matter that:
-- Medicaid provides essential healthcare for low-income beneficiaries, jointly funded by the states and Washington, managed at the state level.
-- In contrast, Social Security and Medicare are insurance programs, funded by worker-employer payroll tax deductions. They're contractual federal obligations to eligible recipients who qualify.
However, you'd never know it the way both programs are publicly discussed, explaining everything but the truth, including about S & P conspiring with Washington and Wall Street to end them as they're now structured to create greater profit opportunities for financial vultures, while, at the same time, shutting out growing millions losing what they can't afford.
On April 18, Standard & Poor (S & P) showed its hand, downgrading its rating on America to negative, saying:
S & P "affirmed its 'AAA' long-term and 'A-1+' short-term sovereign credit ratings on the US. (It also) revised its outlook on the long-term rating of the US sovereign to negative from stable....(W)e now believe (US strengths may) not fully offset the credit risks over the next two years at the 'AAA' level...."
"More than two years after the beginning of the recent crisis, US policymakers have still not agreed on how to reverse recent fiscal deterioration or address longer-term fiscal pressures."
S & P analyst Nikola Swann added that from 2003 - 2008, US debt ranged from 2 - 5% of GDP. However, it ballooned to over 11% in 2009 "and has yet to recover."
Moreover, as annual deficits soar, no matter what Congress does, that percentage will keep rising exponentially because decades of reckless policies aren't easily fixed, never short or even intermediate-term, especially when excesses exceed cuts.
Swann also warned of "a one in three chance that the US could lose its AAA rating in two years because of its mounting debt."
S & P's entire statement can be accessed through the following link:
In November 2010, China's Dagong Global Credit Rating Company (one of the nation's three largest) downgraded America to A+ from AA and its debt to negative because of burgeoning levels. It added that Fed QE is eroding the dollar's value, harming creditors like China, America's largest with over $1.1 trillion reported last October. So far in 2011, Beijing has been a net US Treasuries seller, signaling its lack of confidence.