Rep. Issa: U.S. Credit Rating “Should Be Downgraded”

Representative Darrell Issa (R-CA) spoke with FOX Business Network about the debt crisis and the possibility of Moody’s (MCO) downgrading the United States credit rating. On the debt crisis, Issa said, “it’s more like a garbage strike in New York” because it’s “a self-inflicted wound by your government.” He also talked about the possible Moody’s downgrade, saying, “until we stop spending more, we should be downgraded.” Excerpts from the interview can be found below, courtesy of Fox Business Network.

On the debt crisis:
“It’s more like a garbage strike in New York, but the similarity is this: this is a self-inflicted wound by your government. President Obama has said he won’t sign a short-term increase. The fact is he signed a funding through September months ago, so the truth is we don’t have to have an August 2 deadline. We’ve actually agreed to what the funding is for the government through the end of September.”

On spending cuts vs. tax increases:
“The big question here in Washington, at least as one Republican is, are we serious about cutting spending this year? There are all kinds of pejoratives, but it’s just crap, absolute crap to think that promises over 10 years mean anything. The only thing the American people can count on is have we agreed to spend less money this year period and that’s a negotiation that’s going on. We would like to have spending cuts this year and quite frankly no tax increases. Tax increases always happen and spending usually doesn’t.”

On the possibility of Moody’s downgrading the US credit rating:
“If we can’t get rid of a $1.4, $1.6 trillion deficit year after year, then they should. The reality is we’re collecting virtually as much money as a percentage of the economy here in Washington as we ever did. We’re simply spending, 30, 40, 50 percent more than we should. Until we stop spending more, we should be downgraded if we can’t make that change. We’ve gotta make the change.”

On the suspicion that Moody’s is in cahoots with Obama and the Tea Party to create fear:
“You can find a conspiracy before or after 10 AM in Washington any day of the week, but the reality is these ratings agencies have no idea how to rate a $17 trillion economy like the US. They have no idea how to rate the debt worthiness of a $14 trillion debt like the US. It’s not something you can quantify. If America can pay their bills, it’s triple-A. if we can’t, then it doesn’t matter what rating they give us. Right now we can pay our bills, but we’re heading toward the kind of spending and debt where someday we wouldn’t be able to pay our bills and that’s what has to change.”

On if the gun sting forcing Eric Holder to resign is accurate:
“I’m afraid it is. This is a little like Iran-Contra. When they cooked it up originally, it probably sounded good, but when they looked at it after the fact, it sure sounded stupid to end with a couple thousand stinger missiles in the hands of bad guys who would give them to even worse guys. The only problem is we found them at the scene of crimes with dead people, both Mexican citizens and a US border patrol agent and somebody said wait, we don’t let guns walk and Eric Holder and others keep testifying that we don’t let guns walk, but that’s just a lie. They did let guns walk, they did knowingly turn tail as they watched the guns head either north or south into Mexico and they did it for over 2000 weapons and all they have to show for it is some low level gun buyers.”

• Become A Funded Futures Trader