Prof. Garett Jones on the downgrade:
The bad news is the world has concluded that we’re not the grown-ups they thought we were.
A credit downgrade means U.S. Treasuries will not be considered risk-free assets anymore. Instead investors will find German bonds or Singaporean bonds more attractive.
The general worry about investing in U.S. Treasuries doesn’t mean we’re at risk of a double-dip recession. But, this could be the end of American exceptionalism.
The only way to bounce back is for lawmakers to go back and find another $2 trillion to $4 trillion in spending cuts, like originally suggested.We’ve now botched three chances at fixing our long-run fiscal problems.
More here.
American Exceptionalism? Hah! We're basically a 2nd rate Banana Republic at this point.
As promised, Obama has given us "change".
Reply to this commentLinkReport AbuseThat's racist.
What? Somebody had to say it.
Reply to this commentLinkReport AbuseIt is absurd to say that is a racist statement. It is a reasonable assessment of our current government given the facts at hand.
That said, it is not unfair to say that Mr. Obama and his wife have been the beneficiaries of affirmative action their whole lives. They freely admit this, as well as admitting that they would not be where they are today were it not for affirmative action. This is, they say, why they are great proponents of affirmative action.
The problem with affirmative action is that, in the 21st Century, rather than redressing social wrongs, it tends to advance people to positions for which they do not have the requisite experience, intellectual ability, or the other skills that would otherwise be considered necessary and appropriate to the task. President Obama is simply the most tragic example of this fact.
Finally, it is a testament to the good will of the American people that we elected a Black President. It is also a testament to our foolishness and collective guilt that we elected Mr. Obama President; a man who could have never been elected President were he not Black.
Reply to this commentLinkReport AbuseIt's him we need to change...
Reply to this commentLinkReport Abuse". Instead investors will find German bonds or Singaporean bonds more attractive. "
How many Singaporean bonds are there I wonder.
How much of Eurozone debt is Germany guaranteeing?
Reply to this commentLinkReport AbuseNot very many right now, I think they are running a slight budget surplus. Singapore is a country the US could learn from when dealing with money.
Reply to this commentLinkReport AbuseThere is a lot we could learn from Singapore, and not just about money.
They have low taxes, a simple tax system, low corporate taxes; their equivalent to our SS system is a system where you and your employer contribute money to your own account and not to a ponzi scheme for the govt to raid.
They also have a reputation for being tough on crime. Not surprisingly, crime is very low there, and even lone women feel safe at night (how many big cities in the US could you say that about).
Ironically, alot of the law is based upon the the old British system, back before Britain became infected with soft-headed liberalism. Seems the founder could re-learn some lessons from the colony.
Reply to this commentLinkReport AbuseLeveut,
"How many Singaporean bonds are there I wonder."
EXACTLY! The US Treasury market is currently the only market security big enough to facilitate/handle the volume of common transaction currency needs of the global market. Investors aren't stupid (as a group), but at this point they've got no where else to go (en masse) but to the US Treasuries. That's the only factor that is keeping the price of US Treasury bonds from becoming a bloodbath.
Reply to this commentLinkReport AbuseAn absolute, abject failure in leadership.
Mr. Obama has no clothes. Never had 'em. Never will.
Move over Jimmy Carter...
Reply to this commentLinkReport AbuseS&P did not have to do this for me to find Singaporean bonds more attractive than US bonds, but I understand your point.
Reply to this commentLinkReport AbuseIt's time to let the Tea Party lead!
Reply to this commentLinkReport AbuseSorry, the USA will still be considered by most of the World as one of the best bets. I can safely say this from much experience traveling around the globe.
"The only way to bounce back is for lawmakers to go back and find another $2 trillion to $4 trillion in spending cuts, like originally suggested."
This statement offers a great deal of denial. Even if we had the desired spending cuts on this level, it would not have undone the enormous damage to Our economic credibility created since 2008. Our economy has been rendered impotent by the Democratic Party today. We won't be able to right the ship until 2012, the Democrats - especially Mr. Obama, have made it quite clear they will block any sanity or reason.
The World will not bail on the USA just yet. They are too invested in Our Nation, and many are still very dependent upon Our existence. A growing number of forces out there, will not be blindly supporting the Democratic Party anymore. Obama will have "changed" the vision of many who were ignorant to the disastrous Democratic Party before. The fashionable stereotypes won't fly as easily anymore, and even some of the most devoted anti-US Europeans will long for the USA to succeed again - as their economies continue to sink along with Our struggles.
Sorry, the entire world will simply wait until 2012, to see if the American Public has a clue, and turns out the failed Democratic Party offering.
Prof. Garett Jones should realize, there is probably little chance for any positive action to be expected, prior to Obama and Reid's removal from power.
Reply to this commentLinkReport Abuse"But, this could be the end of American exceptionalism"
Interesting. Prof. Jones writes this as if he actually doesn't understand that this has been the goal from the very first day of Obama's campaign for president.
I always thought it has been crystal clear that goal #1 has been ending America's leadership position in the world.
The professor needs to get off campus more often.
Reply to this commentLinkReport Abuse>>I always thought it has been crystal clear that goal #1 has been ending America's leadership position in the world.
***
Agree, Scott, that that is the #1 ~foreign policy~ objective. I believe that the #1 domestic objective is "social justice"/redistributionism/socialism.
Reply to this commentLinkReport AbuseConservatives want the rest of the world to be like America.
Leftists want America to be like the rest of the world.
Guess who is winning.
Time to get Smart Cars, mom jeans, and watch soccer.
Reply to this commentLinkReport AbuseMr. Williamson:
End of American exceptionalism? No, not yet.
It starts with the citizens and we are coming back.
The paradigms are breaking apart - with the D.C. crowd acting like some kind of out-of-touch European bureaucracy. We need to start firing many of them and manage our affairs. I think American exceptionalism is about to re-emerge much to the chagrin of the clinging leadership of both parties who continue along their pathetic "March of Folly".
God bless,
Reply to this commentLinkReport AbuseDan
This nation is exceptional because of the blessing of our heritage. It will remain exceptional as long as there are men and women willing to live and die for it. I am one of them - and I am not alone. See you all at the polls.
Reply to this commentLinkReport AbuseWhy is it whenever Democrats control the government....it's the end of American Exceptionalism?
"If we Democrats, the 'best and the brightest' amongst all Americans, can't 'fix the country' well, then nobody can, of course! It just means capitalism and freedom JUST DOESN'T WORK!"
The only way Ameriac will recover at this point is for the Democrats to physically leave office by being defeated next election. That's it. Every article from now on is just wasted argument, and useless debate.
That means that it's still downhill for America for the next YEAR AND A HALF! But hey, what can we do except ride out the smug, condescending, arrogant, lying, projectionist Democrat assault on our nation until the Republicans take over...sigh....in a YEAR AND A HALF! The mainstream media, of course, will report all of this as the "evil" Tea Partiers just "standing in the way of REAL reforms" and when they win the next election cycle, and things start improving, they'll say it was really Obama and the Democrat's policies which saved America!
Thank God for National Review, talk radio, the internet, and ever conservative out there who can show the American people the truth and the facts.
Reply to this commentLinkReport AbuseI learned several different definitions of American Exceptionalism in college but none of them made reference to bond markets. Unless you believe that not only the American public good, but even national identity, ought to be dependent on global market dynamics ... this is an odd formulation.
Reply to this commentLinkReport AbuseIt took a downgrade for the rest of the world to realize we(DC) don't manage our nations money very well? They didn't notice before? When the president says he wants to keep spending beyond our means, way beyond, way way beyond, those observers didn't think about it much? Or the repercussions? Then their viewpoint matters little to me, because they're stupid too.
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