By Erik Wasson - 04/18/11 03:16 PM EDT
One of House Republicans' economic gurus said Monday that Standard & Poor's lowering of its outlook on the U.S. credit rating from "stable" to "negative" is evidence the House GOP 2012 budget plan is the right way to go.
"President Obama needs to stop ridiculing Rep. [Paul] Ryan's [R-Wis.] plan which begins
to seriously address our country's long term spending issues and start
supporting it as the best way forward," Joint Economic Committee Vice Chairman Kevin Brady (R-Texas) said in a statement.
He said the S&P announcement is a wake-up call to the Senate and White House.
"America's dangerous deficits have come home to roost," said Brady. "Standard & Poors is comparing our nation's deficits and debts to our AAA peers and finding reason for concern."
While S&P has maintained its AAA rating on U.S. Treasury bonds, it has now said there is a one-in-three chance it will lower that rating within the next two years. Failure to reach a comprehensive budget deal by 2013 could trigger the lowering, S&P said.