Home > American Society, politics, World Issues > The American Credit Rating Lie

The American Credit Rating Lie

News today reported a math error at Standard and Poor that “mistakenly lowered the United States AAA credit rating”.

This is a total, inescapable , bold-faced lie to the American people.

The Wall Street Journal reported , “Math Error Fuels Fight Over Rating

In this report, the article quoted the Treasury Department’s statement of “After two hours of analysis, Treasury officials discovered that S&P officials had miscalculated future deficit projections by close to $2 trillion. It immediately notified the company of the mistakes.

Everyone has had enough of the word play from Washington. It is obvious that the $2 trillion in future deficit projections has NOTHING to do with the long-delayed lowering of the US credit rating from AAA to AA+.

It is insulting , AGAIN, to the intelligence of the American public that our government would use a B.S. statement like that to hide the fact that they are putting political pressure on Standard and Poor to reverse the decision. The statement of the treasury is just a “statement” to give Standard and Poor a reason to change it back. It is not a viable reason, nor should they reverse their decision.

Standard and Poor has a long history of honest ratings. The history has been tarnished over the past few decades by errors in its rating models and for not having complete research on some of its rated entities.

In 2008 it admitted its errors as shown in this Financial Times report : S&P discloses errors in rating models

In 2010, it mistakenly lowered the AAA rating of Germany for about a minute : Red faces at S&P as agency strips Germany of ‘AAA’ rating – for a minute

In the case of the U.S. Government, where the debt is above the annual GDP, and the projected debt is shown to grow to over 20 trillion over the next 10 years……how can it possibly be a mistake?

The decision is long overdue. America needs to work to get its reputation back. All Americans know we have lost our credit worthiness. All Americans are furious with their representatives. Why are we hearing this lie about a “mistake”?

Simple. That is the way Washington operates now. Lies flow like water. The trust is broken. The need to sugar coat the lies is gone. Now we are subject to bold face lies like the one we hear from the Treasury now.

Credit rating dropped because of a math error? PLEASE. Stop thinking we are that stupid. Also, please stop trying to strong-arm independent credit agencies. Grow up. Live with our mistakes and work to fix the problems.

Itia (Abroad)

  1. August 5, 2011 at 8:59 pm

    Well put. The notion that this drop in our credit status as being due to a math error is merely to try and stabilize an all-ready frenzied market. It was a lame attempt.

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