Mitt Romney photo

Romney Campaign Press Release - Not Better Off: Another Debt Downgrade?

September 12, 2012

"For nearly four years, President Obama has presided over reckless spending and runaway debt. And now it's clear that all Americans will pay the price, with another potential credit downgrade and over $5 trillion in new debt that the next generation will be forced to repay. Americans deserve real leadership – not a president who is content to keep passing our bills on to the next generation." – Andrea Saul, Romney Campaign Spokesperson

Yesterday, Moody's Announced The Potential For A Credit Downgrade Due To Inaction On The Debt:

Moody's Warned It Would Strip The United States' AAA Credit Rating If The Nation Did Not Adequately Address Its Long-Term Debt Trajectory. "Moody's Investors Service warned Tuesday that Congress will need to strike a deal on the 'fiscal cliff' to avoid a second downgrade to the nation's credit rating. The rating agency said that budget negotiations in 2013 will likely determine the fate of the nation's credit rating, adding that an inability to strike a deal with 'specific policies' to change the nation's debt trajectory would likely mean a downgrade.  Moody's still rates the nation as a top-shelf AAA credit, but with a negative outlook as it has warned policymakers they must adjust the nation's fiscal course to retain its financial reputation." (Peter Schroeder, "Moody's: Congress Must Reach Fiscal Deal To Avert Downgrade," The Hill, 9/11/12)

Moody's Warned That The United States Would Need To "Reduce The High Ratio Of Debt To Gross Domestic Product." "Moody's Investor Services warned Tuesday that it likely would downgrade the U.S. AAA credit rating if government officials don't deal with the nation's debt problems. The credit rating firm said negotiations between Congress and the White House on the nation's 2013 budget, and whether they will reduce the high ratio of debt to gross domestic product, will be key to maintaining its top credit rating." (Jim Puzzanghera, "Moody's Warns Of U.S. Credit Rating Cut If Debt Problems Continue," Los Angeles Times, 9/11/12)

FLASHBACK: One Year Ago, "S&P Removed For The First Time The Triple-A Rating The U.S. Has Held For 70 Years." "S&P removed for the first time the triple-A rating the U.S. has held for 70 years, saying the budget deal recently brokered in Washington didn't do enough to address the gloomy outlook for America's finances. It downgraded long-term U.S. debt to AA+, a score that ranks below more than a dozen governments', including Liechtenstein's, and on par with Belgium's and New Zealand's. S&P also put the new grade on 'negative outlook,' meaning the U.S. has little chance of regaining the top rating in the near term." (Damian Paletta and Matt Phillips, "S&P Strips U.S. Of Top Credit Rating," The Wall Street Journal, 8/6/11)

·         National Journal, On President Obama's Credit Downgrade: "An Ignominious Legacy For Obama." "The bitter negotiations damaged the standing of Washington leaders—including Obama—in the eyes of an anxious and frustrated public. Then a rating agency lowered the U.S. credit rating for the first time, an ignominious legacy for Obama." (George E. Condon Jr., "What a Week: Afghan Deaths, S&P, And Debt Limit Debate Challenge Obama," National Journal, 8/6/11)

But Don't Expect Any "Presidential Leadership" From Barack Obama – He Failed To Exercise Leadership During The Last Debt Crisis:

Bob Woodward, On President Obama's Leadership On The Debt Ceiling: "That's The President's Job. ... There's Such A Thing As Presidential Leadership." STEPHANOPOULOS: "Your bottom line is successful presidents, like Ronald Reagan and Bill Clinton, largely worked their will. But you reach the conclusion in this case, in this struggle Barack Obama did not?" WOODWARD: "Yes, simply because our financial house is not in order. In other words, the big debate last year about the debt ceiling and whether the U.S. government is going to be able to pay its bills, it isn't over. We're going to be right back in that soup in December and January. And this isn't a budget issue, or a credit rating issue. This is the government going to have its money to pay its bills. And in the end, that's the President's job. Yes, it's Congress's job too. But there's such a thing as presidential leadership." (ABC's "Good Morning America," 9/11/12)

·         Click Here To View

"It Was Increasingly Clear That No One Was Running Washington. That Was Trouble For Everyone, But Especially For Obama." (Bob Woodward, "Inside Story Of Obama's Struggle To Keep Congress From Controlling Outcome Of Debt Ceiling Crisis," The Washington Post, 9/8/12)

President Obama "Did Not Have A Plan B" During Debt Negotiations To Prevent The Government From Defaulting.  "Just $5 billion was about half a day's worth of the federal government's expenditures — closer to the wire than the public had been told. The president told his senior staff that the call with Boehner had led nowhere. 'So we've got to figure out Plan B. Which is, how do we get out of this thing?' he said. The problem was that they did not have a Plan B." (Bob Woodward, "Inside Story Of Obama's Struggle To Keep Congress From Controlling Outcome Of Debt Ceiling Crisis," The Washington Post, 9/8/12)

And What Has Been The Result Of President Obama's Failed Leadership? Record Debt That The Next Generation Will Be Forced To Repay:

Under President Obama, The National Debt Has Surpassed $16 Trillion – An Increase Of More Than $5.4 Trillion. (Department Of The Treasury, Accessed 9/11/12)

·         Every American's Share Of The National Debt Currently Stands At Over $51,000 – An Increase Of Over $16,000 Under President Obama. (Department Of The Treasury, Accessed 9/11/12; U.S. Census Bureau, Accessed 9/11/12)

President Obama Is Responsible For "The Most Rapid Increase In The Debt Under Any U.S. President." "The latest posting by the Treasury Department shows the national debt has now increased $4 trillion on President Obama's watch. The debt was $10.626 trillion on the day Mr. Obama took office. The latest calculation from Treasury shows the debt has now hit $14.639 trillion. It's the most rapid increase in the debt under any U.S. president." (Mark Knoller, "National Debt Has Increased $4 Trillion Under Obama," CBS News, 8/22/11)

The Current Debt-To-GDP Ratio Is "More Than 100%." "That brought the ratio of debt to GDP to more than 100%. The Congressional Budget Office estimated last month the budget deficit for the 2012 fiscal year, which ends Sept. 30, will be about $1.1 trillion." (Jim Puzzanghera, "Moody's Warns Of U.S. Credit Rating Cut If Debt Problems Continue," Los Angeles Times, 9/11/12)

FLASHBACK: Candidate Obama Claimed It Was "Unpatriotic" And "Irresponsible" To Add $4 Trillion To The National Debt. OBAMA: "The problem is, is that the way Bush has done it over the last eight years is to take out a credit card from the Bank of China in the name of our children, driving up our national debt from $5 trillion for the first 42 presidents - #43 added $4 trillion by his lonesome, so that we now have over $9 trillion of debt that we are going to have to pay back -- $30,000 for every man, woman and child. That's irresponsible. It's unpatriotic." (Sen. Barack Obama, Remarks, Fargo, ND, 7/3/08)

Mitt Romney, Romney Campaign Press Release - Not Better Off: Another Debt Downgrade? Online by Gerhard Peters and John T. Woolley, The American Presidency Project

Simple Search of Our Archives