Meanwhile, back at the ranch...
Fitch Ratings said that there would be "no fiscal honeymoon" for President Obama, warning early Wednesday that the U.S. probably would lose its AAA credit rating if the White House and Congress don't address looming tax increases, spending cuts and the fast-approaching debt ceiling.
"The economic policy challenge facing the president is to put in place a credible deficit-reduction plan necessary to underpin economic recovery and confidence in the full faith and credit of the U.S.," said Fitch, one of the three major credit rating companies.
As you no doubt remember, the President has already managed to get the country's credit rating downgraded by Standard & Poor; and if Fitch goes then Moody's is probably not too far behind. So the President's under a little bit of pressure, here... which is complicated by the fact that the electorate last night decided to make sure that the party calling for tax increases on small businesses - excuse me; 'the rich' - kept the Presidency, while also keeping the House of Representatives firmly in control of the party that is adamantly against tax increases. And then there's the Senate... which is run by Harry Reid, who is even now trying to get new and exciting powers to let him do nothing in particular. So it's a mess.
I can't wait to hear how the President plans to fix things. Depending on your mood right now, Speaker John Boehner is either getting ready to supinely cave into the President, or else force Obama to accept at least some entitlement reform; and let me forestall the inevitable cries that it's the former by noting that, yes, the party does not have the best track record on such matters. I'm still getting the impression that Fitch isn't exactly bluffing, here... and that it's no skin off of their nose if the federal government's credit rating gets downgraded. Again: I can't wait to hear how the President plans to fix things.
Moe Lane (crosspost)