Rep. Joseph “Mike” Kelly, Jr. (R-3PA)

NSFW. Foul language warning, but amusing.

Hat tip to Mike Lawler.

Reuters delivered the bad news.

The United States lost its top-tier AAA credit rating from Standard & Poor’s on Friday in an unprecedented blow to the world’s largest economy in the wake of a political battle that took the country to the brink of default.

S&P cut the long-term U.S. credit rating by one notch to AA-plus on concerns about the government’s budget deficit and rising debt burden. The action is likely to eventually raise borrowing costs for the American government, companies and consumers.

———————————————-

Cornell Law Professor William A. Jacobson says:

Democrats own the downgrade. They fought Republicans and Tea Party supporters every step of they way, and forced a deal which was insufficient. They played class warfare and race politics against arguments that we needed to drastically change our spending habits.

This is Barack Obama and Harry Reid’s crowning achievement.

———————————————–

Paul Krugman blames Tea Party Republicans.

[Y]es, it is the madness of the right: if not for the extremism of anti-tax Republicans, we would have no trouble reaching an agreement that would ensure long-run solvency.

Krugman then proceeds to argue that the S&P ratings agency has neither the right nor the authority to make ratings(!).

Another of the videos from Power-line’s contest. This one has rapidly attracted over 35,000 views.

Winner of a Power-Line contest.

A small businessman tells the DC political class where to get off.

From Bird Dog.

Fighting hobbits

“Tea party Republicans may be a noisy and effective protest movement, but they’re unfit to govern,” Rep. Chris Van Hollen (D-Md.) said at a news conference on Friday.

Speaker John Boehner’s task in working out a deal with Barack Obama and the democrat leadership of the Senate to avert a default crisis was made more difficult by 22 fiscally-irredentist Tea Party Republicans who refused to support his compromise solution.

John McCain made headlines by labeling the conservative extremists as “hobbits.”

I think “the hobbits” were wrong tactically and philosophically on insisting on trying to pass a balanced budget amendment. The democrats could never accept a balanced budget amendment. Their base and constituencies would never tolerate it. But, even more importantly, a balanced budget amendment is an unworkable idea which is constitutionally highly problematic.

Publius Huldah is quite right: a balanced budget amendment would strike directly at the concept of enumerated powers and it would effectively transfer decision-making authority from Congress to the courts.

The hobbits were wrong about the balanced budget amendment, but I think their hearts were in the right place and I still think they served a highly useful purpose in holding the GOP leaderships’ feet to the fire and restricting their ability to compromise too far elsewhere.

Mr. Boehner was enabled by their existence to go to Barack Obama and Harry Reid and say, “You know, guys, I’d like to compromise further and let you throw in some class-warfare taxes on the rich, but those crazy hobbits are fierce and fanatical. They’d never put up with any tax increases at all. I’d like to settle for more modest spending reductions, but Bandobras “Bullroarer” Took (R-VA) is insisting on blood.” It’s useful in negotiations to have a “Mr. Jones” you have to answer to, who is completely unreasonable and who is making maximalist demands.

Marc A. Thiessen contends that, in the end, in fact, the Tea Party hobbits did win.

The reported debt-limit deal appears to be a victory for the Tea Party. It includes around $1 trillion in spending cuts and creates a special committee of Congress to recommend cuts of $1.2 trillion more. If Congress does not approve those additional cuts by year’s end, automatic spending cuts go into effect. The package sets an important new precedent that debt-limit increases must be “paid for” with commensurate cuts in spending. According to Sen. Rob Portman, a former White House budget director, if we cut a dollar of spending for every dollar we raise the debt limit, we will balance the budget in 10 years — something that even the Paul Ryan budget would not achieve. And all this is accomplished with no tax increases. …

The Tea Party is also winning the battle of ideas. Last week, Obama campaign strategist David Axelrod crowed that the debt-limit battle was shaping up as a “definitional fight” in which voters would see Obama as defending the reasonable center against Republicans who are “pandering to the extremes.” Well, if Axelrod is so confident that Obama is winning this “definitional fight,” why was the White House so adamant about ducking a second round next year? The president said that “the only bottom line that I have is that we extend this debt ceiling through the next election.” If he were winning the argument, he would have been eager to have this fight again just before the next election.

And Glenn Reynolds notes complacently: Well, you know the hobbits won in the original story too.

The fact that the Conservative Movement is large and diverse enough to have its own more extreme fringe is really a positive sign. Political coalitions large enough to win are never tidy, compact, perfectly ideologically pure, all neat and discreet. A successful political movement inevitably even attracts people you would just as soon not have on your own side along with all the opportunists who can tell which way the wind is blowing.

All you need to do is elect Barack Obama.

From Paul Ryan’s House Budget Committee, A Brief History of President Obama’s Fiscal Record:

January 20, 2009
President Obama sworn into office

President tells the American people in his Inaugural Address: “Those of us who manage the public’s dollars will be held to account, to spend wisely, reform bad habits, and do our business in the light of day, because only then can we restore the vital trust between a people and their government.”

Debt Held By Public = $6.31 trillion

—————————————

February 17, 2009
President Signs into Law the Spending Stimulus

The stimulus adds $821 billion in new spending according to the Congressional Budget Office (CBO).

The White House promises this infusion of spending and borrowing would keep unemployment rate below 8%. As millions of Americans are painfully aware, that promise was broken.

Debt Held by Public = $6.48 trillion

—————————————

February 26, 2009
President Issues FY2010 Budget

The President’s budget adds $2.7 trillion in new debt in FY2010 and imposes $1.4 trillion in new taxes.

Debt Held by Public = $6.58 trillion

—————————————

March 11, 2009
President Signs FY2009 Omnibus Appropriations Act

The massive spending bill includes 8,696 earmarks at a cost of $11 billion.

The spending bill adds $19 billion in new spending above the baseline – an 8.6% spending increase.

Debt Held by Public = $6.66 trillion

—————————————

April 29, 2009
Congressional Democrats Pass FY2010 Budget

The Congressional Democrats’ budget calls for a $2 trillion debt increase in 2010, and another 8.9% increase in non-defense discretionary spending.

The reconciliation process is abused to later pave the way for health care overhaul to be jammed into law.

Of note: this is the last time Congressional Democrats will bother budgeting.

Debt Held by Public = $6.85 trillion

—————————————

February 2, 2010
President Issues FY2011 Budget

The President’s budget more than doubles the debt; pushes the FY2011 deficit to a new record of $1.6 trillion; drives spending to a new record of $3.8 trillion in fiscal year 2011; and raises taxes by more than $2 trillion through 2020, under the administration’s own estimates.

Debt Held by Public = $7.85 trillion

—————————————

March 23, 2010
President Signs Health-Care Overhaul Into Law

The massive new law adds $1.4 trillion in new spending over the next decade, and over $2.5 trillion once the law is fully implemented.

Despite sluggish economic growth and high unemployment, the law imposes over $500 billion in new tax hikes. CBO Director Elmendorf would later testify that the law would reduce employment by roughly half a percent – a reduction of approximately 800,000 jobs.

Debt Held by Public = $8.18 trillion

—————————————

April 15, 2010
Congressional Democrats Decide Not to Do a Budget for FY2011

The 1974 Budget Act requires Congress to pass a budget each year by April 15.

In an unprecedented budget failure, House Democrats not only failed to pass a budget – they opted to not even propose a budget.

Debt Held by Public = $8.39 trillion

—————————————

July 21, 2010
President Signs Financial Regulatory Overhaul Into Law

In addition to heightened regulatory uncertainty, the massive new law adds $10.2 billion in new spending.

Debt Held by Public = $8.69 trillion

—————————————

February 14, 2011
President Issues FY2012 Budget

The President’s budget yet again calls for the doubling of the debt in five years, and tripling the debt in ten years.

The President’s budget spends $47 trillion over the next decade, imposes over $1 trillion in new tax hikes, and fails to address the drivers of the debt.

Debt Held by Public = $9.45 trillion

—————————————

April 13, 2011
President Delivers Speech on Deficit Reduction

The President appears to abandon his own budget by offering a ‘framework’ that calls for additional tax increases, defense spending cuts, and Medicare price controls – yet lacks sufficient detail to back-up claims of deficit reduction.

Debt Held by Public = $9.65 trillion

Hat tip to Theo.

Politico quotes Rep. Eric Cantor (R- VA) on the presidential temper tantrum that concluded the latest round of budget negotiations between the White House and Republicans.

Cantor said the two sides were too far apart to get a deal that could pass the House by the Treasury Department’s Aug. 2 deadline — and that he would consider moving a short-term debt-limit increase alongside smaller spending cuts — Obama began to lecture him.

“Eric, don’t call my bluff,” the president said, warning Cantor that he would take his case “to the American people.” He told Cantor that no other president — not Ronald Reagan, the president said — would sit through such negotiations.

Democratic sources dispute Cantor’s version of Obama’s walk out, but all sides agree that the two had a blow up. The sources described Obama as “impassioned” but said he didn’t exactly storm out of the room.

———————————————

Reuters adds a hilarious quotation from Mr. Obama.

U.S. President Barack Obama told Republicans at the conclusion of a stormy budget meeting on Wednesday that he would not yield further even if it puts his presidency at risk, a Republican aide said.

“I have reached the point where I say enough,” Obama said, according to the aide. “Would Ronald Reagan be sitting here? I’ve reached my limit. This may bring my presidency down, but I will not yield on this.”

———————————————

Bringing to mind a skit broadcast a few months back by Jay Leno:

William Hogarth, The Rake’s Progress: 6. The Rake at the Gaming House, 1734, Sir John Soane’s Museum, London

Republicans, these days, are finding themselves feeling exactly like the parental character in some old-fashioned moralizing English novel. Americans worked hard and lived responsibly and produced as cherished offspring and heir, the liberal elite. Our child, the liberal elite which we shall refer to henceforward as “Algernon,” it turns out, has grown up not into the sturdy young hero we desired, but rather into a vain, irreligious, and totally irresponsible habitué of the most extreme fashionable demimonde, a rake, and a spendthrift.

Inevitably, we learn that Algernon has exceeded his very generous allowance and run up massive debts. There is no possibility that Algernon can ever meet his obligations. Disgrace, dishonor, and debtors’ prison loom as gloomy prospects.

Young Algy has consequently returned to the family home he previously despised to beg his disappointed and estranged parent to intervene to save him. The scene is easily pictured. There is the sad, but still loving, grey-haired pater familias. There is the slightly crest-fallen, but still arrogant, young Corinthian. The father is theoretically willing to retrench and mortgage the estate and sacrifice for long years to come to save his son’s honor and keep him from prison, but he naturally considers himself obliged to make such assistance conditional upon genuine repentance and a complete break with the young man’s bad associations and pernicious habits.

It turns out, of course, that his life of iniquity in the fleshpots of the metropolis has coarsened young Algernon and fed his arrogance. Algy feels completely entitled to the life he has led, and has plans underway for even more ambitious forms of debauchery. Algy regards his father’s estate as already his own, and simply demands that his father assume responsibility for all his current debts and increase his allowance.

Sadly, the unhappy father explains that meeting even the current obligations Algernon has assumed is impossible with the income of the entire estate. To pay Algernon’s debts, land must be sold, the manor-house rented to strangers, tenants evicted and the commons converted to new enterprises to increase income. The entire family will have to curtail its expenses and live on a much more restricted scale for years.

But the wicked and ungrateful Algernon refuses to hear any of this. He bangs his fist on the table, abuses his father, and demands everything he asked for.

Sadly, the father explains that his son’s attitude, his hardened habits of iniquity, and his lack of responsibility make rescuing him impossible. As an alternative to prison, the father can only offer him a boat ticket to Australia and a small remittance for so long as he remains out of England.