The Radio Equalizer: Brian Maloney

09 August 2011

Al Sharpton And Guest: S&P Downgrade Merely Political, No US Debt Problem

WE'RE A-'O'-K!

Sharpton Show: Obama's US In Great Shape, S&P 'Suspect'

While Obamists often go to incredible lengths to defend their Dear Leader, Al Sharpton & Friends are living in a different galaxy altogether.

On Planet Tawana, Barack's America faces NO debt crisis, the economy is strong, while S&P's downgrade is "suspect" and "political" (read: right-wing conspiracy to bring down the president).

During Tuesday's show, talk titan Rush Limbaugh noted the left's new effort to demonize S&P.

From Monday's syndicated radio program, watch as Sharpton and longtime confidant Earl Ofari Hutchinson attempt to hoodwink their listening audience:

AL SHARPTON: The whole downgrading by the S&P, I have my own thoughts on it, but where are your thoughts on this and the president is going to be speaking any minute on this as well as the loss of US troops in Afghanistan. Where are you on this?

EARL OFARI HUTCHINSON: Well, I think it’s totally political. You know Reverend Al, I see politics, I’m like a detective. I don’t just look at the surface in fact, we don’t just look at the surface. We always sniff out politics behind everything.

S&P is political. Moody’s and Fitch, the other two ratings services they still give the US the triple AAA rating. They’re still very creditworthy. In fact the most creditworthy on the planet. Now why S&P? S&P when you look at their history, very suspect.

This is the same rating agency that didn’t seem to have a problem a few years ago with the banks, Wall Street when they were doing all the manipulations with the derivatives in the housing markets Fannie Mae, Freddie Mac when they didn’t seem to have any problem lower rating them. They gave them a triple AAA every step of the way, even though they were collapsing all over the place.

Now why all of a sudden when the debt ceiling issue has been resolved, you have a committee in place, it appears that the cuts that they required, they of course on the other side of the political spectrum are going to get and essentially the no one has implied that the US is going to default on anything, it has never done that and the fact is it never will.

And Rev Al, one other little thing too people seem to forget, they keep talking about debt and how we just had this mountain of debt. Some of the economists that have looked at it a little closer said even that is not what it’s cracked up to be.

The overall debt, service on the debt and the debt is about 1.6% of the overall Gross Domestic Product. Now, that doesn’t sound like to me in a big economy a fulsome economy and still basically a solid economy like the US overall that that’s such a crushing debt thing that the whole system is going to collapse like a house of cards. It’s political!

Of course, estimated US debt-to-GDP is actually 102.63% for 2011 (hello Greece!). But we're guessing you'd already concluded Sharpton & Pals were full of crap.

Yes, S&P's track record is poor, usually because they're slow to implement downgrades in deteriorating economic conditions. That's why some experts believe S&P actually hasn't gone far enough when it comes to American debt.

But political? That's a two-bit "progressive" conspiracy theory.

What's truly "political" is the need to sacrifice our entire economy and well-being in order to prop up a hopeless, doomed presidency.


  • This is a pretty common misunderstanding - the ratings produced by debt rating agencies (like S&P, Moody's, etc.) only *confirm* a company's or nation's fiscal situation - a change in a nation's debt rating doesn't change its fiscal situation in and of itself.

    As for whether the situation that prompted S&P to issue their downgrade isn't a problem, the data and timeline says otherwise....

    By Blogger Ironman, at 10 August, 2011 09:43  

  • France is rumored to be next on the downgrade list (sorry Al, this is not political or racist...nice try on the spin, though). Moodys claims that state and local governments are on their radar. That's one reason why Oklahoma and Kansas returned their federal Obamacare dollars because accepting federal money is a blemish on a state's credit rating, so I'm told by reliable sources.

    By Anonymous Adam Smith, at 10 August, 2011 17:30  

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