Your morning jolt: Pay no attention to those ‘blackmailing’ credit agencies, says Newt Gingrich

With a House Speaker John Boehner’s debt-ceiling plan thrown into limbo last night, Washington is – gulp! – looking at the very real possibility that the federal government’s AAA credit rating will slip.

But don’t look for worry lines on the face of GOP presidential candidate Newt Gingrich, who spoke at a Thursday rally in Cobb County. From the Marietta Daily Journal:

“I am totally uninterested in satisfying Moody’s and Standard & Poor’s,” Gingrich replied. “They were totally wrong in 2008. They failed to do their job. They’re now overreaching in the opposite direction. There is zero reason to believe if you look at the Treasury Market that people around the world think we’re not a good risk,” Gingrich said.

And that was just the start of Gingrich’s long brief against the rating agencies:

“They’re so used to us bailing them out that they think that having stolen – I won’t say stolen, that’s too strong a word – having ‘absorbed’ hundreds of billions of dollars in bailout, they would now like us to have a credit risk. Well, where were they when they were causing the credit risk? So my attitude to Standard & Poor’s is go peddle your paper somewhere else. The people of the United States can’t be blackmailed by some company that failed to do its job.”

Unlike many other Republicans, Gingrich said he’s convinced that a downgrading of the United States’ credit-worthiness will reflect on President Barack Obama, not the GOP.

***
On a related note, the AJC’s Politifact Georgia today takes a look at U.S. Rep. Tom Price’s statement that a failure to reach agreement on the debt-ceiling in Washington won’t necessarily result in default.

***
Possibly you thought that the competition for most dysfunctional school board in metro Atlanta was over. Not so.

Cobb County has submitted yet another bid – with school board member David Banks calling for a grand jury investigation into allegations of illegally rehearsed board meetings. From Tony Thomas of Channel 2 Action News:

***
Mel Steely, the retired history professor and Newt Gingrich biographer, sends word a recreation of former state House Speaker Tom Murphy’s memorabilia-laden office will dedicated at the University of West Georgia’s Ingram Library next April 19.

Murphy, who served as leader of the state House for nearly three decades, died in 2007.

***
Up in Athens, Blake Aued of the Banner-Herald reports that Spencer Frye, executive director of that area’s Habitat for Humanity operation, is considering a 2012 Democratic primary challenge against state Rep. Keith Heard:

“Athens needs a real Democrat who lives here,” [Frye] said….

Heard owns a home in Athens’ Spring Valley neighborhood, but his wife owns one in Fayette County, leading to accusations that he does not live in the district he represents. He has denied that charge and beat back a residency challenge in 2002.

Frye criticized Heard for voting with Republicans this year on a law allowing billboard owners to clear-cut on public land and a state budget that slashed funding for numerous programs.

- By Jim Galloway, Political Insider

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63 comments Add your comment

chamblee54

July 29th, 2011
9:44 am

Ray

July 29th, 2011
9:53 am

Tom Price is the picture boy for a Republican who pulls the wool over his constituents eyes.

His lies would never fly in a district that knows how to read.

Michael

July 29th, 2011
9:53 am

When I saw the Newt headline I thought it was going to be a consumer protection piece. Never mind.

Publius

July 29th, 2011
9:55 am

Much as I don’t respect the former Speaker, he’s is right in many respect about the credit rating agencies. Where he’s wrong is not to be concerned about a downgraded rating. Those rising interest rates will be real.

The Snark

July 29th, 2011
9:56 am

I have a better idea — pay no attention to Newt Gingrich. This trailer park Lenin long ago exhausted his fifteen minutes of fame.

Idiot watcher

July 29th, 2011
9:59 am

I have long been embarrassed to be represented by Tom Price. He is an ideologue fo the worst sort. He wouldn’t recognize compromise or statesmanship if it hit him in the face. He panders to the worst fears of the idiots who vote for him, and he continues to win. Dr. Price is just another link in the long chain of moron politicians from this state.

td

July 29th, 2011
10:02 am

Newt is right again and probably is the smartest man running for President (know he is 1000 times better more competent the the current occupant of the White house). Too bad that his personal life and the media has made him unelectable.

amazing

July 29th, 2011
10:03 am

Hey, Newt

In addition to the credit agencies, let’s ignore Grover Norquist as he is no different from the rating agencies. After that, please take take a seat and realize your time has passed.

Brad

July 29th, 2011
10:08 am

Apparently Ray thinks only Obama`s lies and whining Harry Reid are the right picture boys. Also throw in crying Barbara Boxer. They really make a trio to save this nation!

td

July 29th, 2011
10:09 am

Idiot watcher

July 29th, 2011
9:59 am

“He panders to the worst fears of the idiots who vote for him”

So 70 to 80% of the people that live in his district are idiots? Are not these the same people whose children are the smartest in the state? Are these not the most productive business managers and owners in the state? Yes, they look like “idiots” to me as well, or could it be that your own big government philosophy is wrong thinking and you know it but are to afraid to say you are wrong?

Teddy Roosevelt

July 29th, 2011
10:10 am

The debt ceiling default deadline is rather pointless to talk about when our credit score is going to be reduced anyway.

Eli

July 29th, 2011
10:13 am

The only people committing blackmail (or taking the economy hostage) is the GOP and its radical right-wing authoritarian Tea Party element.

Credit agencies are private entities and are bound to the markets. Just because Newt and his cronies want to bury their heads in the sand and pretend their actions have no consequences does not mean that bond rating will not diminish or that their is no chance of default.

Why don’t you ask Newt what would happen if he did not pay his bills to Tiffany’s?

Centrist

July 29th, 2011
10:17 am

There is little doubt that U.S. will be downgraded for cause. Too much debt and increasing is the reason. The real threat that some of the debt will never be paid back is now a distinct possibility. Years from now it won’t matter if it was Congress, Bush’s, or Obama’s fault – it will just be a fact whose dire consequences will be felt by U.S. citizens whether Democrat, Republican, rich, or poor.

The old adage — if you owe the bank $1,000 and don’t repay you have a problem, if you own the bank $10,000,000 and don’t repay the bank has a problem. Not just U.S. citizens but the Chinese and others have good reason to worry.

td

July 29th, 2011
10:19 am

Eli

July 29th, 2011
10:13 am

“Why don’t you ask Newt what would happen if he did not pay his bills to Tiffany’s”

And how is raising the debt ceiling going to help the US pay its bills? We will now be borrowing $5 or 6 billion per day instead of the $4 billion we are borrowing today. According to S&P our credit rating is going down if we do not cut $4 trillion no matter what happens to the debt ceiling. How is the US going to pay back this additional money?

jconservative

July 29th, 2011
10:22 am

From CBO re Federal revenue and spending for FY 2010.

Actual FY 2010 Revenues
Individual Income Taxes…$899 billion
Corporate Income Taxes..$191 billion
Social insurance taxes….$865 billion
Other revenues……………$207 billion

Total Revenue……………$2,162 trillion

Actual FY 2010 Spending

Mandatory spending……$1,910 trillion
Discretionary spending..$1,349 trillion
Net interest…………………$197 billion

Total spending…………..$3,456 trillion

Of interest: mandatory spending for 2021 is already $3,333 trillion.

The projected deficit for 2021 is $763 billion. But this projection calls for the Bush/Obama Tax Cuts to expire after 2012 as they are currently scheduled.

Make your own points.

woodrow

July 29th, 2011
10:32 am

I like Gingrich, but the GOP cannot escape responsibility for the current debt crisis. And him and the GOPers trying to deflect blame on the executive branch and Obama, is a terribly unfunny joke.

Oh Intown Writer...

July 29th, 2011
10:32 am

Newt needs to spend more time watching Bloomburg Asia.
Foreign investors ARE paying attention, and they are NOT happy.

I forget which Republican said that if the country goes into default the sun will still rise tomorrow.
Nitwit forgets so too will everyone’s interest rates – at which point we all say to the housing market:
See Ya! Wouldn’t Wanna Be Ya!
Oh! and that interest rate hike?
Hits the debt too!
DINK !!

WE have lost our way

July 29th, 2011
10:49 am

Just saw the President on TV. What is his Plan? Again What is his Plan???? Leaders lead they do not punt to congress.I see this as a political move to stay out of the way, so when everything hits the fan. I can blame every one else!!!!!! We are on a sinking ship and the Captain garbs the first life jacket and yells ” Everybody is on their own”!!!!OMG is this real or a joke.

SteveK

July 29th, 2011
10:54 am

I fully believe that 70 to 80 per cent of the people who live in Price’s district are idiots and his is the Chief Idiot!!!!

candi

July 29th, 2011
10:58 am

My advice is to pay no attention to that “blackmailing” Gingrich. He is a liar, a cheat, a hypocrite, and an idiot.

Centrist

July 29th, 2011
11:06 am

jconservative wrote: “The projected deficit for 2021 is $763 billion. But this projection calls for the Bush/Obama Tax Cuts to expire after 2012 as they are currently scheduled.”

This has been the current tax brackets for over a decade. There is no way to figure if things would be better or worse if tax brackets had been higher, but Obama instituted massive bailouts, stimulus spending, payroll (FICA) tax cuts, and agreed not to let the decade old tax rate changes expire. This is now the Obama administration’s economy (and three wars). Current law says all tax rates will revert back to higher ones unless Congress stops it. It could get both economically and politically ugly if they revert during high unemployment which will kill jobs instead of creating them. Simply raising taxes does not necessarily increase revenue – because people and corporations respond accordingly.

RGB

July 29th, 2011
11:12 am

The president has no budget plan. You’d think something this important would deserve a written plan. When I go to the grocery store I make a list to ensure my trip isn’t wasted.

It’s not that Ivy League grad Obama doesn’t understand this, it’s that he’s lazy intellectually. Many of us were concerned about his laziness prior to the election. He was correctly criticized for voting “present” a significant number of times which indicates he’s unwilling, or unable, to communicate where he stands on issues. Additionally, he believes we should recognize his greatness to the point where “he don’t need no stinkin’ plan”. Just trust him.

It’s funny that Obama is thought to be a substantive communicator, but in one of the most important moments of his presidency he just can’t get the words on paper.

dws111

July 29th, 2011
11:19 am

I find it interesting that the party who is all about “free market” economics refuses to bother understanding how it works and get indignant when things like bills being due & credit ratings & all the mechanics involved don’t suit their agenda. They are massively involved in running up the tab and complain about how they are not responsible for that tab & now they are blackmailing you with anything in sight to avoid responsibility. Isn’t in ironic, don’t you think?

gm

July 29th, 2011
11:23 am

Obama put his cards on the table, he was willing to risk SS and Medicaid, but he knew the party of idiots would be to busy protecting big oil, and the rich, when will low and middle class Americans get it the Rep will never increase tax on big oil and the top 2% of wealthy in this country and idiot tea party people rather see this country failed then to work with the President.
The terriost groups around the world and the tea party people have 2 things in common, both of them hope the President of the United States fail and they both hate America.

Ray

July 29th, 2011
11:24 am

Tom Price openly throws active military and veterans under the bus with his shrugging off a default.

At least he’s honest, and at least the GOP ain’t pretending to be Christian anymore.

RGB

July 29th, 2011
11:25 am

So dws111,

Do you believe that Moody’s and S&P “understood how it works” when they failed to predict the crash of the housing market?

Do you believe that only Republicans are fiscally irresponsible or that Democrats too are fiscally irresponsible–and even more so?

Do you believe the problem should be addressed and solved or should we just point fingers and say “ain’t it terrible”?

Would the problem be helped by spending less money or more money?

Which plan recommends that we spend less money?

dre

July 29th, 2011
11:26 am

Newt nailed this one right on the head. Too bad he is such a lighting rod (and/or misunderstood). He does not take any crap from bullies.

RGB

July 29th, 2011
11:26 am

gm,

Don’t think of us as a “terriost” group, but rather an informal collection of Community Organizers.

RGB

July 29th, 2011
11:27 am

“Obama put his cards on the table….”

He still has no scoreable, written plan.

He just says “no” to other people’s plans.

RGB

July 29th, 2011
11:31 am

For those who still think Obama has a plan:

Ryan’s aides were puzzled by how Obama had come up with new figures showing $4 trillion in savings over 12 years.

Following the (president’s) speech, an aide to Ryan contacted the budget office at the White House. The president had been vague about how he’d achieve his goals for cutting spending and reducing debt. So the Ryan staffer asked for specifics. Where did the numbers come from? What were the assumptions? What was the spending baseline? Could the Congressional Budget Office (CBO) calculate the cost of Obama’s plan?

Douglas Elmendorf, the director of the Congressional Budget Office, told the House Budget Committee this morning that his office was unable to estimate the long-term viability of the “budget framework” President Obama outlined in his April 13 budget speech.

“We don’t estimate speeches,” said Elmendorf. “We need much more specificity than was provided in that speech for us to do our analysis.”
———————-
“We don’t estimate speeches” pretty well says it all.

Ghost Rider

July 29th, 2011
11:52 am

The U.S. dollar will be devalued, not because of our monumental indebtedness but because there is a failure to deal with the real problem. We do NOT have a revenue problem, but we surely have a spending problem. President Obama, aided by House and Senate Democrats, wants to continue spending even as we face a $1.65 trillion deficit for this year.

We could not afford the massive spending experienced in the last two and a half years, and we can surely not afford to continue this out-of-control spending. Very tough decisions have to be made concerning the deep cuts in spending that must occur. The President refuses to take a leadership role in spending reduction at a time when we desperately need leadership. There are those who would say that Marx embraced the concept of collapsing the economy as a tool for use in achieving a socialist form of government.

Ghost Rider

July 29th, 2011
11:57 am

gn:

Try thinking of President Obama as an economic terrorist.

gm

July 29th, 2011
12:04 pm

Its amazing how the right God Ronald Reagan raised the debt ceiling 17 times, but the double minded Rep said it was good for America, when Bush raised it 7 times and added 4 trillion to the debt the hypocrites said it was the American thing to do.
The President took leadership by siting at the table with the idiots, Reagan and Bush would have never sat down with a bunch of hypocrites who care nothing about this country but to see the President of the United States fail, the tea party are our in house Terrorist in the USA.

Ghost Rider

July 29th, 2011
12:11 pm

gm:

“The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure. It is a sign that the U.S. Government can’t pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government’s reckless fiscal policies. … Increasing America’s debt weakens us domestically and internationally. Leadership means that ‘the buck stops here. Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better.”

Senator Obama – 3006

What do you say, gm? Was he lying then or is he lying now?

Ghost Rider

July 29th, 2011
12:19 pm

gm:

Tough question to answer, isn’t it? Let me help you: if his lips are moving . . .

td

July 29th, 2011
12:37 pm

gm

July 29th, 2011
11:23 am

Where is the “cuts” to Medicaid and SS? I would really like to read the details of the “cuts”. The CBO said you can not score a speech.

mb

July 29th, 2011
12:38 pm

Sorry Newt, but the GOP has screwed the pooch with this little dangerous game of chicken they’ve played with the debt ceiling to the point that we’re facing a credit rating downgrade regardless of what happens over the next several days. It’s squarely on their back and they will pay the price in 2012.

With the president offering 3 trillion in cuts balanced by 1 trillion in closing of tax loopholes and the tea baggers turning their noses us at it shows just how out of touch the Tea Party is with the rest of America.

GOP RIP and good riddance.

gm

July 29th, 2011
12:39 pm

Congress consistenly brings the government to the edge of default before facing its responsibility, this brinkmanship threatens the holders of government bonds and those who rely on social security and vet benefits.
Ronald Regan 1987

Now we know what party today care less about America””””’ hypocrites rep party

deegee

July 29th, 2011
12:40 pm

“So 70 to 80% of the people that live in his district are idiots? Are not these the same people whose children are the smartest in the state?”

Oh, boy. That’s really saying something.

td

July 29th, 2011
12:44 pm

mb

July 29th, 2011
12:38 pm

“With the president offering 3 trillion in cuts balanced by 1 trillion in closing of tax loopholes”

Where is this plan? I would like to read the details. The only plan I see is the ‘Cut, cap and balance” plan that passed the house and the Senate decided to table. No Democrat has offered a plan. Now who is really out of tuch?

deegee

July 29th, 2011
12:47 pm

Since when does the President present legislation? Isn’t that the job of the House and Senate?

td

July 29th, 2011
12:50 pm

deegee

July 29th, 2011
12:40 pm

I think there standardized test scores can be put up against any other place in the country.

td

July 29th, 2011
12:54 pm

deegee

July 29th, 2011
12:47 pm
Since when does the President present legislation? Isn’t that the job of the House and Senate?

The President often puts forward legislation to show his leadership on a issue. Did you know he sent a budget this year to the Senate that was so bad that it was voted down by all 51 Democratic Senators and failed 97-0? (Even the socialist Bernie Sauders voted no). Is this what you call leadership or did Obama show how far out f touch he is?

deegee

July 29th, 2011
12:59 pm

Since when is the executive branch of the government responsible for the budget?

deegee

July 29th, 2011
1:12 pm

“I think there standardized test scores can be put up against any other place in the country.”

td, I understand that this is a blog. English grammar and sentence composition is not necessarily the greatest, but you could at least make the distinction between “there” and “their”.

Ghost Rider

July 29th, 2011
1:13 pm

gm:

I gather that you’re not going to answer my question?

Charles

July 29th, 2011
1:21 pm

The rating agencies non performance are the reason for the real estate bubble and crash. However, when you take out a cash advance on your credit card to make the minimum payment on that same card you are a credit risk. That’s exactly what the federal government has being doing so yes it’s about time these agencies started doing what’s expected of them.

TheCapn

July 29th, 2011
1:23 pm

My, what short memories the GOP has. Obama inherited the whole bailout fiasco. Hundreds of billions in bailouts was Bush’s legacy, not Obamas’. Also Bush/Cheney legacy: hundreds of billions in war profiteering by their cronies. I think we could save billions upon billions if the task of serving and supplying the armies was once again the job of the armies.
And lest we also not forget: The very party (GOP) who now decries earmarks for pet projects are themselves the largest instigator of same, even while making speeches against them. “Mandatory” spending needs a closer look. Mandatory for what? 300 million dollar bridges to no where? How much “mandatory” spending is so simply because it is a pet pork project earmarked into law?
I believe that if suddenly, the Congress was populated with people who were interested in serving their country, and concerned about its future, that a balanced budget eventually without ANY debt would be possible. Instead, the current bunch are concerned only with their immediate wealth, power, perks, and with childish grandstanding. Someone said the other day: when do we abandon the current two-party system and return our government to the three-branch system that our Constitution demands? Well said.
Starting point: in 2012, throw out ALL incumbents, vote only true Independents, (not just opportunistic turncoats), and demand personal accountability.

hfs

July 29th, 2011
1:23 pm

It doesn’t do any good to know how to read if you can’t process the written matter with logical thinking. One of the biggest oxymorons that I know of is to speak of a logical democrat.

wcm3

July 29th, 2011
1:24 pm

Everytime I glance at the ajc editorial or political section I realize why I don’t glance at it more often. This is worse than the dailykos. Hey, idiot watcher, better get out of bed the welfare office closes at 5. Or is Obama sending them straight to your home now?