Obama may think he can try to rewrite history as much as he wants the S&P to reconsider its debt downgrade, but the facts aren’t on his side.
He claimed today that it was a lack of compromise that led to the downgrade. Funny, he must not keep track of what his own White House is putting out because his staff was blogging and tweeting about how the “compromise” reached was a “victory for the American people.”
And as a reminder – something Team Obama will definitely not point out – the S&P already warned the Obama White House that it would consider downgrading the country’s outlook and rating in the spring. The Obama admin pushed back, insisting that Obama’s speech would assuage the S&P’s concerns. We all know how that turned out as Obama proceeded to deliver a partisan diatribe against Paul Ryan’s plan – with Paul Ryan in the audience. The S&P told the Obama admin after the speech they were not convinced and proceeded to downgrade its outlook for the United States of America.
Obama Tries To Rewrite Narrative That He Already Put In Words:
Today, Obama Claimed That The Lack Of Compromise Led The S&P To Downgrade America’s Credit Rating. OBAMA: “This downgrade you’ve been reading about could have been entirely avoided if there had been a willingness to compromise in Congress.” (President Barack Obama, Remarks At Johnson Controls Inc., Holland, MI, 8/11/11)
But After The Debt Ceiling Compromise Was Reached, Obama White House Tweeted That The Compromise Was A “Victory” For The American People: “The American People Won In This #Compromise” (“Office Hours 8/2/11 Or ‘The American People Won In This #Compromise’: Jason Furman Answers Your Questions On Twitter,” The White House Blog, 8/2/11)
- President Obama In His Own Words: “Congress has now approved a compromise to reduce the deficit and avert a default that would have devastated our economy. It was a long and contentious debate.” (President Barack Obama, Remarks On The Federal Budget, Washington, D.C., 8/2/11)
REMINDER - In The Spring, S&P Already Warned Obama Administration About Downgrading America’s Credit Rating; Obama’s Partisan Speech Against Paul Ryan’s Budget Proposal Sealed Their Decision:
Obama Administration Has Been Urging Standard & Poor’s For Weeks To Not Lower Its Outlook, Which The Rating Agency Ignored. “The Obama administration privately urged Standard & Poor’s in recent weeks not to lower its outlook on the United States — a suggestion the ratings agency ignored Monday, two people familiar with the matter said.” (Zachary A. Goldfarb, “Obama Administration Officials Tried To Keep S&P Rating At ‘Stable’,” The Washington Post, 4/19/11)
Obama Administration Officials Asked The S&P To Delay Releasing Its Long Term Outlook On U.S. Debt Until After Obama Delivered His Speech Last Week. “For months, as officials from the ratings agency Standard & Poor's sought information from the Obama administration, Treasury administration officials – the ones in charge of selling US debt - worried that the ratings agency would downgrade its long term outlook on the United States debt. They went so far as to ask S&P to hold off until President Obama was able to offer a serious proposal to reduce the debt, sources told ABC News.” (Jake Tapper, “Obama Administration Asked S&P To Hold Off On Any New Debt Rating Until President’s Deficit Speech,” ABC News’ “Political Punch” Blog, 4/20/11)
Despite White House Claims That Obama Was Not Giving A Partisan Speech, A Partisan Campaign Email And Further Criticism From Obama Of Paul Ryan’s Plan In Subsequent Campaign Events “Put That Point To Rest.” “While White House advisers pushed back hard on the idea that Obama was giving a campaign speech, a subsequent campaign email from Obama campaign chief Jim Messina that night and Obama’s incorporation of the theme into campaign events in Chicago seemed to put that point to rest.” (Sam Youngman, “A Bad Time For Obama’s Approval Dip,” The Hill’s “Ballot Box” Blog, 4/20/11)
- Obama White House “Could Not Resist The Temptation” For Demagoguery, But “In Swinging For The Knockout, The President Might Have Gone Too Far.” “With just a few days of hindsight, it’s not difficult to imagine that Obama’s advisers saw the Ryan plan, and particularly its proposed reforms to Medicare, as a political gift. The White House could not resist the temptation to go for a knockout punch. In swinging for the knockout, the president might have gone too far.” (Sam Youngman, “A Bad Time For Obama’s Approval Dip,” The Hill’s “Ballot Box” Blog, 4/20/11)
After Obama’s Partisan Speech, S&P Analysts Told The Obama Treasury Department That They Were Not Convinced And Would Proceed To Release Its Downgrade. “But S&P analysts told Treasury officials on Friday that they were unmoved — and released a report that expressed skepticism that the political parties could come together on how to bring spending in line with revenue.” (Zachary A. Goldfarb, “Obama Administration Officials Tried To Keep S&P Rating At ‘Stable’,” The Washington Post, 4/19/11)
Budget and Spending National Debt