What are we paying him for? We’re paying him to run for president again, I thought.
A video treat below in honor of Fitch declaring that its outlook on U.S. treasuries is now officially negative after the Super Committee’s failure. Coming next: Another bump down to AA for President Downgrade.
[T]he negative outlook indicates a “slightly greater” than 50% chance that Fitch downgrades the U.S. over the next two years.
“Failure to reach agreement in 2013 on a credible deficit reduction plan and a worsening of the economic and fiscal outlook would likely result in a downgrade of the U.S. sovereign rating,” David Riley, a managing director at Fitch, said in the report…
Fitch warned that further deficit reduction efforts “will not be credible” if they solely rely on cutting discretionary spending. Economists have said Congress needs to quickly move to slash entitlement spending on programs such as Social Security, Medicare and Medicaid.
The failure of the Supercommittee to reach a compromise “underlines the challenge of securing broad-based consensus on how to reduce the outsized federal budget deficit,” Riley said.
Granted, the Committee’s failure further weakens America’s creditworthiness, but on the upside, it’s super helpful to Obama’s campaign narrative about a “do-nothing Congress.” And don’t think both sides on the Committee weren’t keenly aware of it. I think the most O-friendly answer you can muster in response to Christie’s question, in fact, is to ask what good it would have done if he had participated. Even if he was willing to detonate his 2012 messaging by making a deal with the GOP — possibly including entitlement reform, which would tie the DNC’s hands on ads targeting seniors next year — who thinks he still has enough political capital left to get any of the Committee’s Democrats to go along with it?
Two clips, one of Christie and the other of O promising Europe we’re ready to “do our part” to help them out of their fiscal quicksand. What that might mean, I don’t know, but the speculation already has me nervous. Dude, three words: Secret. Fed. Loans.