One way you can know Presidente Hopium is B.S.'ing you: His lips are moving. If he wanted to go after rich kleptocrats, all he would have to do is beef up law enforcement and federal prosecutors. He could beef up the IRS and turn them loose on the real criminals. He could team up with states' Attorney Generals and engineer a steep bankster cram down on mortgage fraud. The possibilities on the judicial and administrative front are endless. These are all calls he can make. What does he do about it? Answer: He runs interference for his kleptcratic patrons while continuing to dish out his stale, canned Democratic talking points.
On the other side of the aisle, the klepotcrats' Republican agents are bringing out their hired guns to work over Aunt Millie's entitlements. Is the talk here about means testing or increasing the Social Security income ceiling a few notches? No. Instead, it centers around shaving benefits with cheap, tawdry inflation-reporting tricks.
Next, we see kleptcrats totally exaggerating the impact of the faux debt deal. JP Morgan for instance is going to explain away the cause of emerging economic weakness -- not as distortions and inflation caused by horrific monetary and fiscal policy, but because the Gumnut is (on paper) only going to run a $1.08-trillion deficit in FY 2012. Excuse me, but if the economy is so fragile that it has to incur trillions of dollars in government support rackets without which it will suffer a big drop in economic activity, then that is a highly unstable and unsustainable bailout-nation system from the get go. Here is the bottom-line indicator of government support, spending and kleptocratic wash-rinse-repeat rackets to date: Another 1.1 million on food stamps during May.
[Moody's] In assigning a negative outlook to the rating, Moody's indicated, however, that there would be a risk of downgrade if (1) there is a weakening in fiscal discipline in the coming year; (2) further fiscal consolidation measures are not adopted in 2013; (3) the economic outlook deteriorates significantly; or (4) there is an appreciable rise in the U.S. government's funding costs over and above what is currently expected.
In an interview with The Associated Press on Tuesday, David Riley, managing director at Fitch, said, "There's more to be done in order to keep the rating in the medium-term."