America Downgraded: What Does it Mean?

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S & P has announced that they could downgrade the sovereign rating another notch if the United States does not clean up its act. The credit rating agency downgraded the US from AAA to AA+ on Friday August 5th 2011 for the first time in history, and the outlook is bleak. Although it has been discovered that there was a $2 trillion accounting error in S&P’s report that led to the downgrade the agency is standing behind its decision. Continue reading ‘America Downgraded: What Does it Mean?.’

America Avoids Default But for How Long?

The United States may have averted imminent crisis today, but the future still does not look bright for the world power.

The bill signed on August 2nd raised the debt limit $2.4 trillion dollars, which should be enough to last the country until 2013. It also cut spending $2.1 trillion in the next 10 years. $900 billion of the cuts were decided in this bill. A 12-member committee was also created to come up with $1.5 trillion more in cuts over the same time period. If the panel cannot come up with at least $1.2 trillion in cuts then spending cuts would happen all across the U.S. budget, targeting things like the Pentagon, domestic agencies, farm subsidies, and payments to doctors and other Medicare providers. However much the committee comes up with in cuts the same amount would be added to the debt ceiling. This all came without imposing any new taxes, a key Republican demand. This was a success for the Tea Party movement, and a complete failure for the Democrats. Continue reading ‘America Avoids Default But for How Long?.’

America’s Fascination with Tea

In the last four years we have witnessed the rise of a faction of the Republican Party dubbed the Tea Party movement. Described as conservative and libertarian the group has quickly risen to control both within the party and in the Republican-controlled House of Representatives. Continue reading ‘America’s Fascination with Tea.’

The Countdown is On

The countdown is on until the United States defaults on its national debt. Just 11 days remain before the deadline to raise the debt ceiling for the country. If it is not raised the United States will be forced to default on its $14 trillion deficit on the August 2nd deadline. The issue has arisen after the Republican Party has decided to hold the vote hostage to force Obama to bend to some of their demands. Continue reading ‘The Countdown is On.’

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