By John W. Lillpop
Is the use of simple mathematics beyond the capabilities of professionals at Standards and Poors?
One could reach that conclusion judging from remarks made by Treasury Department officials after the downgrade of America’s credit rating.
Example: Gene B. Sperling, director of the National Economic Council, said Saturday that S&P’s conduct was “breathtaking,” adding that “it smacked of an institution starting with a conclusion and shaping any arguments to fit it.”
Another example: According to John Bellows, the acting assistant secretary for economic policy, the S&P downgrade report was based on “a basic math error of significant consequence.”
Just for the record, the dispute can be boiled down to this:
S&P originally assumed that America’s debt would be $22.1 trillion in 2021. On the other hand, the U.S. Treasury says the number should be $20.1 trillion dollars.
Either way, the U.S. is in dreadful shape!
Rather than squabbling over $2 trillion in 2021, our leaders should be working 24/7 to bring an end to the reckless spending that will surely bankrupt the nation if not reversed!
So, how to deal with the shame and disgrace of the S&P downgrade?
Perhaps President Obama and other disgruntled liberals should spin S&P as “terrorists,” akin to Tea Party activists?
