People used to rely on Standard & Poorâ€™s to follow the debt rating of stock, bonds, and other financial instruments. Since 2008, their credibility has been flushed down the toilet after the exposure of their role in giving the magic AAA rating to various questionable real estate products.
Today, Standard & Poorâ€™s has managed to take one step further down the road to ignominy. Not only did they downgrade Ireland's debt, but they downgraded the outlook on US debt citing the US government's inability to come to terms with the budget by 2013.
Can these moves be seen as anything but a brash attempt to push the ideology of austerity on the United States and Europe? What is really disgusting is they are making these moves in relation to a problem they played a key role in making!
Wall Street would like nothing better than to see job growth stall and a probable victory by a Republican for president in 2012. Standard & Poorâ€™s is playing by that script. The only question which remains is will the American people do what is right for the country, or what is right for Wall Street and Standard & Poorâ€™s?
Standard & Poorâ€™s isn't practicing economics, it is practicing blatant extortion by threatening to hold hostage a jobs recovery for the ransom of an American austerity program.
It is simple politics, not economics.