From American Thinker today….
April 20, 2011
German press reacts to the Standard & Poor’s downgrade
Standard and Poor’s downgrades its outlook on America’s AAA debt rating from stable to negative. The President continues his demagoguery against the Republicans and continues to beat the drum of class warfare. The Democrats in the Senate are content to thwart any meaningful spending reductions. With [this] as a backdrop what is being said overseas about the ongoing Washington Follies?
Germany is the dominant economic power in Europe and is what is keeping the Euro zone from complete collapse, considering the never-ending saga of Greek insolvency, Irish and Portuguese bailouts as well a nearly inevitable rescue of Spain. The Germans, of all political stripes have begun to openly express their concerns over the actions of the Obama administration and the Democrats. What is surprising is the commentary of left-wing publications.
The center-left daily Frankfurter Allgemeine Zeitung wrote:
The reason for the Standard and Poor’s change to America’s rating outlook is not new financial data. Rather it is the political danger that the Democrats and the Republicans will only agree on a debt-reduction strategy after the 2012 presidential election.
The primary reason for America’s political stalemate is Obama’s refusal to see that, in an aging society, social spending cannot be as generous as it has been in the past. The great social reformer Obama is at least 20 years too late with his ideas. And given the irreconcilability of the two parties, it isn’t possible that a plan to reduce national debt will take shape within the next two years.Obama only heated up the campaign atmosphere with his budget speech last week. Indeed, the top rating for US bonds is in danger. [Emphasis added]
Another center-left publication Suddeutsche Zetung writes:
Indeed, one wonders why S&P, and its two competitors Moody’s and Fitch, hasn’t long stripped the US of its AAA rating. The step by S&P is a positive signal, because it counters the accusations that US ratings agencies are more critical of European debtors than they are of American ones.
The left-wing Der Spiegel adds:
A report issued by the International Monetary Fund last week suggests that the US national debt could reach 100% of gross domestic product by 2014. There is little indication that the upward trend will be reversed anytime soon. And concerns about US debt are clearly growing.
While few would argue that the 100 percent figure is anything more than symbolic, US national debt is indeed astronomical, its debt-to-GDP ratio is, in fact, higher than Ireland and Portugal’s both of which have asked for immediate aid packages from the Euro zone.
Still recent history has shown, that when it comes to winning back a rating of “stable” [from Standard and Poor’s] radical spending cuts are necessary. Standard and Poor’s think it is a road that Washington is not interested in traveling. [Emphasis added]
It is not a coincidence that the Standard and Poor’s action and the commentary by German publications that would normally be in league with President Obama came out after one of the most hyper-partisan, mendacious and deceitful speeches made by any President in recent memory. Obama’s address on the 13th of April on an extraordinarily important matter, the US budget and debt crisis, revealed that he and his fellow travelers in the Democratic Party have no interest in solving these crucial problems, instead there is a re-election campaign to run and the country and the world be damned.
America’s major creditor, the Chinese, whose foreign ministry in a very cryptic statement said: ” We hope the US government will take responsible policies and measures to protect to safeguard foreign investors’ interest.” China holds over $1.2 Trillion dollars in US treasuries.
The world has fully awakened to the disaster that is Barack Obama; when will the rest of America?
That’s the column…. below are the comments, which also are enlightening as they are from around the world…. Everyone but some Americans seems to understand that Obama is destroying our country. A Canadian notes that their media reports on a daily basis the fiscal disaster that America has become, and to use America as an example of what NOT to do, and of the candidate type NOT to elect for their government…
American Thinker comments on the above column:
|Posted by: londonalan
Apr 20, 12:26 PM
You needn’t read just the German press, that kind of reporting and commentary is going viral throughout Europe. Any wonder why Obama hasn’t made many trips over here? The royal wedding is a circus diversion, but thank god they didn’t invite Obama to attend. Yes, my American cousins read into it!
|Posted by: JeffW
Apr 20, 01:14 PM
“The world has fully awakened to the disaster that is Barack Obama; when will the rest of America”?
For some, the answer is never, not even if he literally snapped and went insane on national TV.
|Posted by: misterZ
Apr 20, 01:19 PM
America is doomed, because the ‘entitlement’ voters, in alliance with the left wing variety fringe groups, are numerous enough to keep reelecting fiscally liberal congressmen like Pelosi, Reid, Snowe, etc. They, in turn, will keep the substantial number of RINOs from drifting far enough right to enact fiscally responsible legislation (eg, a balanced budget capped by a GDP fraction). Better plan for the worst case scenario, because the S&P analysts pegged it…Congress/Obama will not enact meaningful spending reform, and anything less insures a financial collapse. The real tragedy is that it will be Obama’s poor, black, nearly unanimous constituency that will suffer the most from such a collapse.
|Posted by: Cowboy1958
Apr 20, 01:27 PM
We may not speak English but we do understand it. But I do have to state in our defense that there are even more people that do not speak Austrian. Obama will do everything he can to destroy this country but will not succeed. He WILL be a uniter not for the reasons claimed but because we will have to unite to get rid of him.
|Posted by: HarleyDavidson
Apr 20, 01:29 PM
This type of reporting is widespread here in Canada. Its on every channel on a daily basis and seen in every newspaper virtually every day. And with our elections happening here you can bet your bottom dollar no party here wants to duplicate the US democratic economic policy and in fact use the US as the bad example.
I happen to agree with the Europeans on this one as well – the US rating agencies, minus of course Standard and Poor’s downgrades earlier, are not anywhere near as brutal on US debt as they are on European. Any fair rating agency should have sounded the debt alarm ages ago. That in and of itself needs to be investigated. When your “national debt is indeed astronomical, its debt-to-GDP ratio is, in fact, higher than Ireland and Portugal’s both of which have asked for immediate aid packages from the Euro zone” as reported by Der Spiegel then you all have a catastrophic crash waiting to happen. The cold hard facts openly said outside your borders is; the only thing preventing the US dollar from crashing is the rating agencies failure to tell their US citizens how bad the US national debt really is. And many out here are saying it is the rating agencies who are deliberately propping up the Obama administration strictly for the US elections and NOT for the US national interest.
That’s the harsh news from here in the world outside your borders and we no longer believe Americans are being told the truth about the extreme seriousness of your entire economy. Moreover your politicians are fiddling while Rome burns. All I can say is the you’ll need a lot more than luck to get through this one. We all see the catastrophe happening – why can’t Americans – or your politicians? Can the American people even understand how serious this really is for YOU?
|Posted by: JAWilson
Apr 20, 01:50 PM
George Soros was way out front in his efforts to oust Bush. Now that all looks like a sandwich in Barack’s hands, where is the old pirate? Better yet, where is his money?
|Posted by: Gail S
Apr 20, 01:56 PM
Sounds like Germany is afraid they will have to pay for their neighbors’ bailouts instead of America. Now as to America, we really need to get our legislators to take a thorough look at Rules for Radicals. The socialist Democrats are not bad at economics, they are deliberately courting and nurturing an economic crisis of sufficient magnitude to permit them to socialize uh…er, nationalize private retirement accounts (probably the largest single pool of money in the nation), and the energy industry. Once they really control our futures (Social Security was just a stepping stone), and the price of energy, our liberty will be gone.
Think about it. The Dems have proven time and time again that whatever they are talking about is what they are not doing, and what they are really doing is not talked about. During Obamacare debates, they talked about insuring the uninsured, now there are more uninsured than ever before. What they were doing was hiding advance funding for the infrastructure of total government control of health care, which is happening at lightening speed. Now they are talking about budget cuts and spending. That is not what they’re doing. They are doing something else. These are the most rapacious people ever to walk the earth. There are two readily liquid assets in the U.S., private retirement accounts and oil. Bets anyone?
|Posted by: Paul from SA
Apr 20, 02:06 PM
The Whitehouse must be furious. “Obama only heated up the campaign atmosphere with his budget speech last week.” I’m shocked they (German press) are so informed. Usually the Europeans just recite the liberal talking points. They are one of the most mis-informed people when it comes to the U.S. I suspect, too, that they are concerned about the loss of American financial support, direct and indirect.
|Posted by: Boutwell
Apr 20, 02:08 PM
Our country has the worst case of “head in the sand-ism” imaginable and to our greatest of peril. I do not believe the average American has any idea how dangerous this debt situation is as they have become impervious to the gravity of the numbers involved – they’re just numbers at this point. History over the last 80 years has proved to most American’s that we eventually emerge into a more prosperous world and somehow we’ll get out from under this one too. But, the Dem/Rep uni-party has now sealed our collective fate with their inability (and no desire) to take any real steps towards stopping the debt juggernaut. We have become the stupidest people on the planet to be looking into the very maw of disaster and not see the teeth.