Why the debt will never be addressed by this congress:

Democrats, Republicans See Clashing Views Helped by S&P Revision

federal debt as a percent of GDP:

If government borrowing costs were 1 to 3 percentage points higher than forecast during the next decade, debt would rise to 92.5 to 109.5 percent of GDP. Photo Illustration: Bloomberg

The divide between Republicans and Democrats in Congress over combating the nation’s debt was spotlighted by Standard & Poor’s lowering of the U.S. credit outlook to “negative,” with each side saying the change bolstered their competing arguments.

Democrats said the revision issued yesterday by New York- based S&P helps make the case for a broad agreement based on the debt-cutting plan President Barack Obama outlined last week. Republicans said the ratings firm’s report reinforces their call for deeper spending cuts than the president and other Democrats have been willing to consider.

AND NOT ONE OF THESE SELF SERVING, PREENING, POSTURING MORONS HAS ANY CLUE THAT THIS DOWNGRADE SIGNALS DANGER FOR THE ENTIRE NATION, RATHER THAN AN OPPORTUNITY TO SCORE POLITICAL POINTS FOR THEIR NARROW, IDEOLOGICAL TINKERING WITH PURELY INSIGNIFICANT SLIVERS OF THE BUDGET.

‘Wake-up Call’

Congress is facing a vote as early as next month on raising the government’s $14.29 trillion legal debt limit. The Treasury Department projects that it will hit the cap on May 16, though it could use emergency measures to avoid default until about July 8.

Obama and members of his economic team have said that failure to approve an increase could have catastrophic consequences for the U.S. economy and financial markets.

YET THE PETTY BICKERING CONTINUES:

Representative Jeb Hensarling of Texas, head of the House Republican Conference, said confidence in the U.S. economy is “sure to dwindle” when Obama “chooses to treat our national debt as campaign fodder and insists on more spending and more taxes.”

House Democratic Whip Steny Hoyer of Maryland said the S&P’s decision “shows the urgent, bipartisan action needed to put our nation on a serious path to reduce deficits.” It “demonstrates that Republicans cannot hold the debt limit hostage over partisan, divisive issues,” he said.

If you think these BOZOS are going to get together to tackle the problem, now's a good time to sell your gold. If not... well, you know what I think.