“Herman Cain supports ensuring that minorities receive the same opportunities as non-minorities. He does not agree with a "quota" style affirmative action system, giving an advantage to minorities simply because they are a minority.” [i]

Here's a Column by Herman Cain; originally created 04/28/04

(Editor's note; The writer, a Republican candidate for U.S. Senate, is a former chairman and CEO of Godfathers Pizza and head of the National Restaurant Association.)

As I have been saying for a long time – we’re in deep trouble as a Nation and as a people.

Standard & Poor's downgrades US credit rating from AAA to AA+ for the first time in the history of the ratings. The credit rating agency is cutting the country's top AAA rating by one notch to AA-plus.

Failure of the Federal Government to significantly cut spending is what let to the downgrading. S&P is also issuing a negative outlook, meaning that there was a chance it will lower the rating further within the next two years.

We’re about to experience the greatest economic slump that worthless money can buy.

The credit rating agencies are corrupt and incompetent but that will not change the affect this will have on interest rates and inflation.

Standard & Poor’s has warned Washington several times this year that, unless the federal government took steps to tame its debt, its credit rating could be lowered.

Analysts have said a downgrade could increase the cost of borrowing for the U.S. government and lead to tens of billions of dollars in more interest costs per year. That could translate into higher borrowing for consumers and businesses, too.

A downgrade would also have a cascading series of effects on states and localities that rely on federal funding, including in the Washington metro area, potentially raising the cost of borrowing for schools and parks.

The downgrade is likely to be used as a weapon by both Republicans and Democrats as they argue the other side has not taken deficit reduction seriously.

Other credit rating agencies — Moody’s Investors Service and Fitch Ratings — have decided not to downgrade the United States credit rating. But they’ve warned that, if the economy deteriorates significantly or the government does not take additional steps to tame the debt, they could move to downgrade too.

If you think the stock market is acting crazy now, just wait until next week; pay special attention to the Asian Markets.

Hang on tight - the ride is about to get much rougher!

For more information, visit my Economy page and News Page.

We’re in deep trouble Ladies and Gentlemen.

Here’s where we at now that the Federal debt deal has passed the Senate with 74 votes (46 Democrats & 28 Republicans) and was signed into Law by President Obama.

Not only does the bill raise the debt limit by $2.4 trillion it also allows the debt to continue to grow by $7 trillion over the next 10 years. This plan never mandates a balanced budget.

Our Government has shown the world that we are totally incompetent and totally unable to deal with our own debt problems.
 
This was an emotional strain on Americans – for nothing!

The new law creates a new 12-member "super-committee" with the tremendous power to slam massive tax increases through Congress which will eventually target defense appropriations.

Following the passage of the Debt deal, the US Treasury released figures showing that the US debt shot up $239 billion to reach 100 percent of gross domestic product (GDP) — the largest one-day bump in history. The previous one-day record debt increase was $186 billion, set on June 30, 2009.

The new borrowing took total public debt to $14.58 trillion, over end-2010 GDP of $14.53 trillion, and putting it in a league with highly indebted countries like Italy and Belgium.

Wall Street will panic!

The last time US debt topped the size of its annual economy was in 1947 just after World War II. By 1981 it had fallen to 32.5 percent.

Moody's warned the Feds that the government must stabilize the ratio at 73 percent by 2015 or it may lose the coveted AAA rating.

America clearly lost!

Following the administration’s victory in the debt battle along with the continual Class warfare campaign being waged by the President, his supporters, and a totally complicit liberal media may eventually crash the economy.

The Jobs market will continue to decline!

I was hoping for a compromise that would avoid a default but not at the expense of conservative principles. After all of the posturing and rhetoric by Republicans, they ultimately caved and gave President Obama a huge political win. Not only did they not accomplish anything positive but they may have secured a reelection victory for Obama.

There’s absolutely no confidence in American Leadership to restrain spending and confusion is spreading worldwide.

We must credit the Tea Party movement for forcing the debate to the absolute highest levels of political discourse but in the end, many Tea Party-backed house and senate members failed to vote in favor of the deal.

The GOP overall, caved!

Compromise - what a joke!

Even after weeks of non-stop political rhetoric and bickering it’s back to business as usual…

As predicted – Republicans totally caved!

I felt we needed to compromise and make the best deal possible but in the words of Al Capone to Elliot Ness in the Movie Untouchables - “You Got Nothing…Nothing!”

This so-called deal is horrible and Republicans in Congress may want to consider reading the bill before signing it. Remember, this plan is non-binding!

The plan will immediately raise the debt ceiling by $2.1 trillion dollars allowing for increased spending.

Brilliantly played Mr. President!

Compromise is necessary, but leadership is inexcusable.

Immediately the bill would only cut $7 to $20 billion the first year and roughly $900 Billion over the next ten years with the US Military taking the biggest hit. The Federal Government currently spends about $20 Billion a day and $900 billion every 3 Months. These so-called cuts don’t even kick in until 2013 and they only affect proposed increases in spending.

For the record, if the Bush tax-cuts will expire in 2013 following the 2012 Presidential Election the economy will collapse. This will be the tax increase that the Democrats so desperately wanted.

The growing spending trajectory changes and slows a little but nowhere close to ever reversing.

The “Balance Budget Amendment” provision in this agreement only calls for a vote on the amendment and that the bill will not be tabled. This plan does not guarantee the provision will pass and will require a two-thirds vote and ratification by at least 38 states.

The proposed bipartisan 12-person Joint Super-Committee is a waste of time and will ultimately target defense spending.

Here we go again; “We must pass the bill so we can find out what’s in it!” Well, the bill also allows for $7 trillion more in spending over the next 10 years, confused?

A default could only be as bad as the President will allow; if he wants a catastrophe then we’ll have a catastrophe. The US could still lose our triple-A credit rating anyway.

We’re screwed!

For more information, visit my Economy page and News Page.

The US Senate voted 59-41 to table House Speaker John Boehner’s plan, which the House approved by a vote of 218-210. No Democrats supported the House’s plan, and 22 Republicans opposed it, including 11 first-term House members. I feel that the majority of House republicans were not really happy with the bill but wanted to show unity and to push it over to the senate where they knew it would die.

Now, they can tell their constituents that they have done their job…

Here are the 22 no votes: Justin Amash (Mich), Michele Bachmann (Minn.), Chip Cravaack (Minn), Jason Chaffetz (Utah), Scott Desjarlais (Tenn), Tom Graves (GA), Tim Huelskamp (Kans), Steve King (Iowa), Tim Johnson (ILL), Tom McClintock (Calif), Mick Mulvaney (SC), Ron Paul (Texas), Connie Mack (Fla.), Jim Jordan (Ohio), Tim Scott (SC), Paul Broun (GA), Tom Latham (Iowa), Jeff Duncan (SC), Trey Gowdy (SC), Steve Southerland (Fla), Joe Walsh (Ill), and Joe Wilson (SC).

Democrats who control the Senate oppose the balanced budget amendment provision that was added by Boehner to secure enough votes to pass the bill from fiscal conservatives. The amendment would require passage before the debt-ceiling could be raised for a second time in February.

President Obama is a savvy and formidable political adversary; in fact he’s a tactical genius. Harry Reid is a master politician with impressive political skills. The democrats think they’re controlling the narrative and winning the PR battle – I must agree.

The President’s approval rank has sunk to 40% but it’s still twice that of Congress. Remember, the democrats want huge tax increases and a much large government. And will not roll over.

Let’s digress from the legislative battle to the political battle for the remained of this note. This war between parties is bigger than just the raising of the debt ceiling, budgets, or controlling the out-of-control spending – it’s about power and I believe the President really wants a crisis.

The comments like that by chief Rino John McCain targeting the Tea Party and the plan submitted by the so-called bipartisan “Gang of Six” along with a totally bias liberal media are making it much more difficult to achieve a consensus.

President Obama is smart enough to know that he cannot be re-elected based on his performance. The unemployed rate is way too high, likely to increase, and will not drop enough before the election. So what is his re-election strategy?

Well, Obama successfully blamed George W. Bush for the horrible economy but now he needs someone else to blame for the rest of his pathetic term. The Tea Party is most likely going to be the recipient of that blame. But there is much more to the blame-game.

The democrats want a Third-party Presidential candidate; it’s the only way he could potentially pull off a victory in 2012. I have said since the emergence of the Tea Party movement that they will not be able to resist exercising their power. The ultimate sign of strength would be to win the White House or at least to make a tremendous impact on the election process, topping 2010. There are some national Tea Party figures that want this and can’t wait to flex their political muscle – this would guarantee Obama a victory.

By driving a wedge between traditional Republicans and Tea Party-backed members the tactic may eventually cause a split in the party. By attacking Tea Party favorites like Bachmann, Palin, and Perry the media is also effectively aiding the division.

The President is also counting on voter apathy; I predict that over a 100 million eligible voters will not vote in the next Presidential election. No matter what happens, Obama will get the liberal vote – there’s nowhere else for them to go.

The race card and class warfare will also ensure a large turnout so look to more of the same.

Stay tuned…

For more information, visit my Economy page and News Page.

It appears that the downgrade is inevitable regardless even if the debt ceiling is raised. The Boehner plan is going nowhere and the President continues to provide inadequate leadership during this crisis.

Conflicting Ideologists will often make it very difficult to achieve a consensus on anything.

Gee, what could happen?

Well, according to many experts if the US defaults then there may be a sharp sell-off of the US dollar as investors abandon the currency in favor of a more stable destination. Gold prices will also soar. Consumers in the United States will see major price increases in almost all imports including fuel.

Once we lose our highly coveted triple-A rating, we will be forced to pay a considerable premium to borrow in the future. The federal government is already projected to spend $1.5 trillion more than it takes in this fiscal year, which means it will be forced to rely on deficit financing for the foreseeable future. The cost to secure and service this debt would surge.

Consumers would also feel the sting of higher interest rates as the increased cost of borrowing money would quickly find its way down to the retail level. The result would be a further drag on the economy. Lay-offs will follow!

This could force the Federal Reserve to initiate a third round of quantitative easing to inject money into the banking system.

Access to traditional sources of credit could be cut off. This will leave the government no choice but to boost taxes and cut spending to a far greater degree than Washington lawmakers are currently talking about. This may be the sub-plan…

Even if a deal is made to increase the debt limit, America’s foreign creditors are cautioning against simply returning to business as usual. They are demanding a credible plan to close the deficit gap and to assure global markets that the US is serious about reducing its dependency on deficit financing.

Continuing to add trillions to the national debt places the US in danger of losing control of its own destiny – a fact that would become clear in short order in the unlikely event that America’s creditors, such as China and Japan, decided to call in their loans or refused to extend additional credit.

Default by the US is uncharted territory and totally self-inflicted; it’s the unknown that’s scary!

The longer the brinksmanship in Washington drags on, the more international investors will question the safety of US government bonds. Technically, the US could avoid a default by opting to meet the debt repayment schedule but leaving other programs underfunded. The government might have no option but to withhold pay for federal employees or suspend Social Security payments.

As drastic as this seems, even this will only defer the crisis until the next round of debt repayment is due. America’s reputation as a sterling investment has already taken a hit, and this alone could see lenders demanding a premium to buy US debt in the future.

Nobody really knows for certain what's going to happen but I feel that without a Balance Budget Amendment we're just playing games.

For more information, visit my Economy page and News Page.

This has become a game to some and a big joke to many others.

Let me put this in the simplest terms – we have a big problem!

It was not taxing enough that got us to this point – it was way too much spending…

I have said from the beginning that Republicans are losing the PR battle; they will pay a hefty price, not for caving to the left but for not being unified. To the public, the perception is that the GOP is divided and playing politics with our economy – perception is often reality.

Name-calling seems to be Harry Reid’s plan and the President’s plan is to bring the country to the brink of financial collapse so as to maintain his vast expansion of government.

None of the plans that are currently being debated at this point from either side slows or cuts current spending or caps future spending with any seriousness. As I have said from the beginning of this political-created crisis – it’s all “Smoke & Mirrors!”

We’re in trouble folks; checks will go out and the interest on the debt will be paid but I fear that our bond rating will drop and interest rates will begin to rise nearly overnight.

The Cut, Cap, and Balance Act is still the best plan presented so far…

Remember, Republicans do not control the Senate or White House so compromise is a must. It appears at least for now that tax increases proposed by the President have been dropped for now – that’s some progress. We still need trillions in spending cuts and caps must be imposed on all future spending.

House Speaker John Boehner has opted to give up on passing the Cut-Cap-Balance Act and has adopted a new plan that is nearly identical to the one proposed by Senate Majority Leader Harry Reid. The Reid plan is totally out the question.

The Boehner-Reid plan is toxic and gives President Obama an immediate $2.5 trillion increase in the debt limit and only promises to cut spending in the future – a promise that we know they will never keep.

The plan forms a new twelve member “Super Committee” and reduces only $1.2 trillion of spending over the next ten years which is only about 10% of what the debt is expected to grow over that same period. Seventeen similar committees or commissions have been formed in the past only to add more confusion to the ongoing debt crisis.

The Boehner-Reid plan does not provide sufficient reductions in current spending and excludes a Balanced Budget Amendment. Without mandatory limits, the spending will never stop!

I know that a compromise is necessary but this is a terrible plan and may make things worse. We shouldn’t pass a bad deal just to make a deal.

Though the plan does not mention additional taxes; this plan does not guarantee that there will be no tax hikes in the near or distant future.

Without a comprehensive agreement to cut, cap, and balance spending then our massive debt will continue to grow at an alarming rate.

Though the President hurt himself during the press conference on the 25^th, he is still winning the PR battle over the debt crisis.

Please call your congressional members and tell them how you feel…

For more information, visit my Economy page and News Page.

President Obama’s speech regarding the debt crisis on July 25, 2011 was extremely reckless and very damaging to America’s economic future. This shows just how desperate the left really is… He blamed much of our financial woes on the wars in Afghanistan and Iraq when he’s requesting billions of dollars for his war in Libya including hundreds of millions to rebels. 

Is the President posturing for leverage or is his willing to let the country default on its debt? 

If Obama truly believes that Republicans will receive the bulk of the blame then he will continue to spin his scare tactics until there’s a total collapse. 

Checks will go out! 

As the deadline nears, I believe that both sides will eventually come to a compromise that will at least in principle slow the spiraling deficit, hopefully with no tax increases. 

It is difficult to negotiate a compromise when the left is airing false, divisive ads spewing hateful lies whenever a camera or mainstream reporter comes near them; they have chosen to leave truth totally out of the debate. 

The credit rating agencies have been clear that no matter what happens with the debt limit, the U.S. will lose its AAA credit rating unless we produce a credible plan to reduce the debt by trillions of dollars. Cut, Cap, and Balance is the only plan on the table that meets this standard. 

Only a Balanced Budget Amendment will actually solve our debt problems.(A downgrade of U.S. debt by ratings agencies Standard & Poor's or Moody's Investors Service would probably add $100 billion annually to borrowing costs, according to estimates by JPMorgan Chase.)
 
The government will never allow for true Job creation by penalizing the Job creators and making them pay for the federal government’s massive irresponsible spending spree!

For more information, visit my Economy page and News Page.

The public wants the debt ceiling crisis resolved and for Washington to stop playing politics with our economy.  

Well, that will never happen - politics is what politicians do...

Keep in mind that nearly every tax break, spending cut, or cap proposed in every plan presented thus far will only affect future increases and does little for the existing debt.

Its "Big Picture" time folks!

There will be many battles in the war to retake our country and to put America back on the right path. We are not going to accomplish this enormous undertaking in one or two steps; it will take many years, elections, and a tremendous amount of work.

Failure to raise the debt ceiling is a real problem and a credit downgrading should be taken very serious by everyone.

President Obama may be a tyrant who does not like disobedience much less compromise but he controls the most important position in this debate. He is still, in my opinion winning the PR battle and controlling the narrative and he knows it.

You must know your opponent's strengths, weaknesses, and limitations as well as your own.

Contrary to popular beliefs, President Obama has a plan. He will do whatever it takes to keep his huge expansion of government model in place. Obama believes that "Social Justice" is his war and class warfare is his weapon. He hates capitalism and taxes are his method of achieving victory over his enemy.

We need to make sure we don't default on our obligations and make the best deal possible for the American people. Once we have taken back the Senate and or the White House we can reopen the debate.

Republicans will get the blame if we default and this may ultimately cripple our chances in 2012.

For more information, visit my Economy page.