Categorized | OP/ED

A Morass…..

Posted on 07 August 2011

Southlake, TX, –  August 6, 2011 – Standard & Poor’s has downgraded the United States of America’s credit rating from AAA to AA+. Judging by S&P’s release, the brinksmanship of the Legislative and Executive Branches of our Government to take the debt ceiling hostage seriously influenced the agency’s thinking.

 

This downgrade is the logical outcome of the long-running “Deal or No Deal” dynamic in Washington.

 

The S&P didn’t like the contentious nature of the negotiations nor the outcome. While the deal reached removed default as an option, the agreement “falls short of the amount that we believe is necessary to stabilize the general government debt burden by the middle of the decade.” In other words, S&P downgraded the U.S. in large measure because the recent debt deal didn’t do enough to stabilize its financial health as well as the lack of governing by its lawmakers.

 

No matter your political views or affiliation, this calamity was entirely man-made, and appears intentional.  The careless attitude toward the nation’s obligations…whereas one party is fixated on taxes and the other on budget reductions…and never shall the two meet in a compromise, has brought to its citizens the possibility of higher interest rates (credit card and mortgages) and more squabbling in Washington on this same issue with the creation of a “Super Congress”. This elite group, made up of six Congressmen/women (not yet named) from each party and chamber, will now lead the US to a “negotiated” and  “compromise” solution of our current morass. Interestingly, this “Super Committee” will, like it larger bodies, have the authority, but will shy away from responsibility and accountability of the outcome to the very people they SERVE…the American people.

 

According to Einstein; Insanity is defined as doing the same thing over, over, over, and over again and expect a different outcome!

 

Polls showed that American voters generally endorsed a mix of spending cuts and tax increases. And plenty of neutral observers thought that the approach of the debt ceiling expiration would help forge a grand bargain. Somehow, the views and opinions of voters get lost in translation, or are our lawmakers that out of touch with reality?

 

Missing in all this are the real issues…jobs, jobs, jobs, and the economy. Although employers added 117,000 jobs in July this increase is barely enough to keep up with the population growth.  Unemployment is 9.1% as a national average.

 

Our economy appears to be in a ping-pong match. Consumer spending is down for the first time in 20 months. Americans have been struggling this year with high unemployment, scant raises, and higher gas prices. A recent increase in credit card debt signals that people are falling on harder times.

 

When will the Legislative and Executive Branches of Government listen to its constituents and focus on the real issue…our immediate future? At this point what is needed is Leadership.

 

The above OP/ED was prepared by;

 

Doyle J. Girouard

CEO and Senior Managing Partner

The Cypress Group

email; doyle@thecypressgroup.com

Phone: 817-421-4774

Cell: 817-307-7577

© 2008 The Cypress Group – All Rights Reserved

 

ALL RIGHTS RESERVED

 

This article and its contents are the property of The Cypress Group and reserves all rights to ownership, use, reproduction, distribution, and publication of this document and the intellectual property therein. Some parts of the document are reprinted from other sources.

Leave a Reply

You must be logged in to post a comment.

Tags

Twitter

Videos, Slideshows and Podcasts by Cincopa Wordpress Plugin