Dr. Boozman's Check-up
Why What Moody's Says Matters
Jul 14 2011
One day after Moody's Investors Service said it will begin a review of our government's credit rating, a senior Vice President at the global credit rating powerhouse said that if the U.S. government misses a debt payment, our sovereign rating “could be cut the next day.”
From the Wall Street Journal (Subscription required):
One such scenario Mr. Hess envisions--if the U.S. misses a debt payment--would be downgrading the country by one notch the day after a payment was missed and keeping the rating on review for an additional potential downgrade.
That review would give Moody's Investors Service time to look at the potential long-term effects on U.S. Treasury debt. Long-term questions include the speed at which the initial missed payments were made up; the effect a missed payment has on future borrowing costs; and any regulatory changes implemented to avoid future defaults.
I added the emphasis to the end to highlight the fact that Moody’s—and the other big international credit rating agencies—are looking for the U.S. to not only raise the debt ceiling, but enact long-term solutions to our financial problem. This is why I continue to work toward an agreement that includes significant cuts and a spending cap mechanism (such as a balanced budget amendment) to prevent us from having to raise the limit once again.
We got into this mess by spending money; we can’t fix the problem unless we cut spending. Let’s get to work reining in the reckless spending and putting our nation back on a fiscally responsible path.
If you live in the Little Rock media market and are a Comcast customer, you can catch my interview on CNN Headline News airing at the following times:
Monday, July 18th – 7:24am and 12:24pm
Tuesday, July 19th – 8:24am and 1:24pm
Wednesday, July 13th & 20th – 9:24am and 2:24pm
Thursday, July 14th & 21st – 10:24am and 3:24pm
Friday, July 15th & 22nd – 11:24am and 2:24pm
Saturday, July 16th & 23rd – 8:24am and 2:24pm
Sunday, July 17th & 24th – 10:24am and 1:24pm
You can also stream the entire interview from my site.
Thanks to the kind folks at Comcast Newsmakers for inviting me on and thanks to each of you for taking the time to watch this interview.
'Stimulus' Stumble, Part II
Jul 08 2011
The Bureau of Labor Statistics released a report today showing that the unemployment rate increased to 9.2% in June.
Shortly before the “stimulus” passed Congress, Christina Romer, then-chairwoman of the president's Council of Economic Advisers, and Jared Bernstein, the Vice President's top economic adviser, released a report with their predictions about the impact of their plan on the economy. One of their bolder projections at the time was that with the “stimulus,” our national unemployment rate would peak below 8% in 2009.
Almost two and a half years have gone by and our national unemployment rate has never been lower than 8% since the “stimulus” became law.
This chart adds the real numbers to the Romer-Bernstein prediction of the monthly unemployment numbers with and without the President’s “stimulus” plan. As the red dots on the graph show, our national unemployment numbers are far worse than they were pre-“stimulus”.
The media has been talking at length today about what this report means in terms of the President’s political future, but that angle of the story misses the most important part: this about more than numbers, more than a report, more than a political talking point—its real people. 14.1 million of them to be exact. All of whom are looking to Washington for help.
Unfortunately, the President and his allies in Congress have refused to provide the help these Americans need. The government cannot create jobs, despite this administration’s efforts to prove otherwise, but we can help encourage an environment where the private sector can flourish.
How many bad reports are necessary before the President and his allies in Congress recognize their policies are making matters worse, not better, for America?
Final Liftoff
Jul 08 2011
Space Shuttle Atlantis blasted off from Kennedy Space Center this morning. This marks the end of 30-years of Space Shuttle missions.
As Ranking Member of the Senate Subcommittee on Science and Space I had the opportunity to visit Kennedy Space Center in April for the planned launch of Space Shuttle Endeavor. During the tour of NASA facilities we saw the work being done preparing Atlantis for its final launch.
We are proud of everyone who contributed to the successful program and we are working to maintain our position as a leader in the space exploration. You can read my thoughts about the future of America’s space program in an op/ed posted on The Hill’s website.
'Stimulus' Stumble
Jul 07 2011
White House expectations of job creation from this flawed legislation fell flat and we’re experiencing more unintended consequences from this as described in the Weekly Standard.
An Overdue Honor
Jul 01 2011
On Monday, a 66-year old oversight was corrected.
87-year old Mansfield resident, Ralph “Lloyd” McDonald, was presented with the Bronze Star, an award given for heroic or meritorious service, by my Military & Veterans Liaison Steve Gray. Mr. McDonald, who served as an infantryman during World War II, was injured on the battlefield on three different occasions. He was also captured by German forces and held as a prisoner of war for almost a month.
Steve presented the medal to Mr. McDonald during a ceremony held before 75 friends, family members and neighbors at the Hartford Senior Center. The Southwest Times-Record was on-hand to cover the ceremony and you can read their report here.
If nothing else, please take a moment to read the letter I prepared for the ceremony. It is an amazing story of courage and patriotism, the kind of story that exemplifies the Greatest Generation.
We are faced with a wide range of issues that will have a big impact on the future of our country. From creating policies that will increase employment opportunities to cutting spending and becoming fiscally responsible to international conflicts that are using American resources, this is a challenging time. I am confident that we can address these topics and be an example for the rest of world.
You can hear my opinions on all the latest issues in this interview I did with Arkansas Abroad.
Where is Your Budget Proposal, Senator Reid?
Jun 28 2011
Senate Majority Leader Reid's failure to produce a budget in almost 800 days, along with a call to end the idea of tax increases that his party is floating, was the main focus of my speech on the Senate floor yesterday.
This is failure to govern at the most basic level and the American people deserve better. We need a budget that puts us on the path to fiscal discipline.
Read more about what I had to say over on The Hill's website. If you missed the speech, you can watch it here and tweet your feedback to me or post it over on my Facebook page.
A Discussion with KASU on Today's Issues
Jun 28 2011
This morning I talked with KASU's Mark Smith about the storm recovery, the economy and budget discussion underway in Washington. In case you missed it, you can hear our discussion here.
On Wednesday, President Obama spoke to the American people on the drawdown of U.S. troops from Afghanistan. As a reference to his speech in November 2009 at West Point ordering an additional 30,000 troops overseas, the President addressed his commitment to begin removing the troops this July. With the month of June coming to a close, and the people looking for promises to be kept, the speech came at a susceptible time for our nation.
The President addressed that “our mission will change from combat to support,” and by 2014 the “Afghan people will be responsible for their own security.” In his speech, he stated by next summer 33,000 troops will return home and his expectations hold the responsibility of policing the country and continuing the advances we have made to the Afghan government after the removal.
I am committed to a responsible transition and drawdown of American troops in Afghanistan. However, I believe that strategic decisions should be based on the recommendations of commanders on the ground, rather than to fulfill a campaign promise or arbitrary timetables.
In testimony before the House Armed Services Committee on Thursday, Joint Chiefs of Staff Chairman Adm. Michael Mullen said President Obama’s decision “was more than I recommended” acknowledging that the Commander in Chief overruled the commanders on his decision.
I am well aware of the tremendous sacrifices that have been made by the members of our military and their families, yet we should listen to the advice of our Generals to facilitate a responsible exit strategy that will not undermine the gains we’ve made or compromise the safety of our troops who continue to serve in Afghanistan.
