Posted on 07/30/2011 7:01:42 PM PDT by NoLibZone
The "limited magnitude" of both debt plans put forward by congressional leaders would not put the nation's AAA credit rating back on solid footing, Moody's Investors Service announced Friday.
"Reductions of the magnitude now being proposed, if adopted, would likely lead Moody's to adopt a negative outlook on the AAA rating," the credit rating agency said in a new report. "The chances of a significant improvement in the long-term credit profile of the government coming from deficit reductions of the magnitude proposed in either plan are not high."
It added that "prolonged debt ceiling deliberations" have increased the odds of a downgrade, but that the firm is still confident policymakers will avoid a default.
"It remains our expectation that the government will continue with timely debt service," the firm said. It also clarified that as far as it is concerned, the nation will only default if it misses an interest or principal payment on U.S. debt, not if it misses payments on other obligations like federal employee salaries or Social Security benefits.
(Excerpt) Read more at thehill.com ...
I Don’t care if Reid or Bohner win or lose.
We must win.
Our Kids must win.
Half of the children born today ( only half of Americans pay taxes ) already are already in debt to the tune of $92,000.00 dollars.
Nancy wants to add $9,000 dollars to $101,000 dollars.
This figure does not include the annual taxes owed.
Nancy is puzzled about the fight to raise the debt- “why now, why this president?”
Pelosi is unaware of the current economic climate Americans are faced with.
japan has a AA+ bond rating - did the markets meltdown forever and do they still make great products?
Nancy wants to add $9,000 dollars raising the debt to $101,000 dollars.
Oh my...look at this.
When Moody’s downgrades our ratings, I guess we will see another blame game coming out of DC. But where are the solutions?
These two bills do NOTHING to begin the process of saving this country from the coming collapse.
Already posted and has a good discussion going, http://www.freerepublic.com/focus/f-news/2756291/posts
Glenn Beck challenged us all yesterday to “take responsibilty for our own lives” and not invest our emotions in the political quagmire in DC.
People need to get ready for the worst because its coming sooner or later.
People need to get ready for the worst because its coming sooner or later
He is right. I have never been one to stock pile food and water.
But since congress is in denial does not mean I have to be.
I am starting to take the proper steps.
And still, the yield on Japanese govt securities is approaching zero:
Prior to posting I searched for the term - Moodys.
Actually, when you think about it, neither debt plan DOES protect the AAA rating...
... in the sense that if we have neither plan, zer0/regime is forced to trim $1.65 Trillion from THIS year's spending. And, repeat next year as well... Govt will spend approximately $175-$200 billion per month - the amount it takes in.
Neither party will EVER cut the spending!!!!
Why? We have to cut spending, why can’t they?
Because we are a fiat currency, and it NEEDS debt, a constantly growing and NEVER shrinking debt, to survive.
That is why. It is not pretty to be at this point of a currency based only on the power to tax. That is the only thing holding up the US dollar. NOTHING else.
So, why should either party stop it??
Why should they cut back on their ability to buy votes??
AH!!! They aren’t going to stop.
A fiat currency is just like a shark, it needs a growing debt to stay alive.
They will never cut the spending.
I wish they would, but they won’t. The die was cast, with a dem majority, giving this nation the FED, in 1913.
THAT is the root of the problem.
UH......, there are three plans put forward.
If you take the yield for Treasuires, and add in REAL inflation, we already have NEGATIVE rates on Treasuries here in the USA.
Well, that’s all well and good if you live out in the country or the mountains, but if you are in the city its not that simple.
And, without electricity, cell phone connections, etc...we are limited.
So debt is held primarily by the Fed and not bondholders?
Our Kids must win.
///
Amen.
thank you for posting this important article.
No problem. I’m one of those people that like to see articles posted twice. This is my fave and I’m glad people are interested. My only point was to provide a link to another discussion.
What are the bonds but the power to tax to pay them back with interest?
In fact, some will describe the US dollar as nothing but a zero interest bond.
Have you been reading my posts? http://www.freerepublic.com/focus/news/2756324/posts?page=53#53
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