Candice Miller for Congress, Michigan

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S&P Downgrade

by Candice Miller on August 12, 2011

S&P Downgrade
By Michael Garrisi, Detroit Courts Examiner
http://www.examiner.com/courts-in-detroit/s-p-downgrade
With Standard and Poor’s reduction of the United States credit rating to AA+, comes confirmation that outstanding debt and uncontrolled government spending is damaging the nation’s image. The government has responded by creating a 12 member “supercommittee” to create a plan cutting costs of more than a trillion dollars over the next decade, with a deadline of November 23, 2011. Members of congress are also working on creating a new amendment to the U.S constitution expressing the need for a balanced budget.
 
U.S. Representative Candice Miller (MI-10) released this statement in response to the S&P reduction, “The downgrade of U.S. securities by Standard and Poor’s is a sharp edged message to Washington that massive deficit spending cannot be sustained. Throughout this year the House Republican majority has taken steps to avoid this very occurrence by directly tackling our deficit and debt only to be rebuffed by the Administration and the U.S. Senate. The time is now for Washington to stop sticking its head in the sand and avoiding the obvious. We must reduce spending, borrowing and the addition of new debt. It is also time for dramatic action to show investors that the United States is serious about solving this problem. A serious and dramatic step that should be taken immediately is Congressional passage and submission to the states of a balanced budget amendment to our Constitution. Only this action would spur the vigorous national debate that is so necessary to help us deal with our problem of overspending. We must act now.”
 
President Obama had this to say in response to one credit rating agency’s downgrade, “The fact is, we didn’t need a rating agency to tell us that we need a balanced, long-term approach to deficit reduction.  That was true last week.  That was true last year.  That was true the day I took office.  And we didn’t need a rating agency to tell us that the gridlock in Washington over the last several months has not been constructive, to say the least.  We knew from the outset that a prolonged debate over the debt ceiling — a debate where the threat of default was used as a bargaining chip — could do enormous damage to our economy and the world’s.  That threat, coming after a string of economic disruptions in Europe, Japan and the Middle East, has now roiled the markets and dampened consumer confidence and slowed the pace of recovery.”
 
The seats for the “supercommittee” are slowly being filled. There is an August 16, 2011 deadline for John Boehner (R-OH), Nancy Pelosi (D-CA) and Mitch McConnell (R-KY) to select three members each. Currently, Harry Reid has selected John Kerry (D-Mass.), Patty Murray (D-Wash.), and Max Baucus (D-Mont.).

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