Posted on 08/05/2011 5:04:57 PM PDT by mandaladon
Two government officials tell ABC News that the federal government is expecting and preparing for bond rating agency Standard & Poor’s to downgrade the rating of US debt from its current AAA value.
Official reasons given, one official says, will be the political confusion surrounding the process of raising the debt ceiling, and lack of confidence that the political system will be able to agree to more deficit reduction. A source says Republicans saying that they refuse to accept any tax increases as part of a larger deal will be part of the reason cited. The official was unsure if the bond rating would be AA+ or AA.
A third official says that S&P made a "serious mistake" in its analysis, "based on flawed math and assumptions," so the Obama administration is pushing back. But even though "S&P has acknowledged its numbers are wrong, it's unclear what they're going to do.," the official said.
S&P refused to comment.
Because of the pushback, the Obama administration is preparing for the downgrade but is not 100% positive it’s going to happen, officials said. And if the downgrade does happen, officials are not sure when it will happen.
Before ratings agencies issue a downgrade, there is often some back and forth that goes on behind the scenes. Treasury Department officials have been making the case for months that S&P should not downgrade US debt.
(Excerpt) Read more at blogs.abcnews.com ...
Idiots! On both sides!
A source says Republicans saying that they refuse to accept any tax increases as part of a larger deal will be part of the reason cited.———
Doesn’t matter that it’s not the truth, it will be what’s cited...
What a surprise, they didn’t find out until document dump night.
The analysis? The analysis is that the fedgov is not serious about tackling debt. Adding $10+ trillion in the next decade certainly won’t help.
They were the last people on Earth to figure this out.
Flawed math has nothing to do with Republicans not accepting tax hikes.
He lied.
The negotiation is about coordinating to pin it on the Republicans.
Remember, Obama couldn’t care less about the country. He is concerned about his power and his ideological goals.
If the Obama regime can negotiate with S&P to cite Republican intransigence on taxes as the reason for the downgrade, then a downgrade helps Obama.
If not, then a downgrade hurts Obama. That is the only calculus that matters for Obama.
And anyway, anyone paying attention to the debt, liabilities, revenues and economic deterioration does not need S&P to tell them how precarious the government’s financial situation is.
Just got this tweet
BreakingNews Breaking News
S&P reconsiders US government debt downgrade after feds say raters’ calculations off by ‘trillions’ - CNBC
Cut the fricken spending, stupid!! Meanwhile, the incompetent imbeciles Obama and Geithner continue borrowing, printing and expanding the government!! And the impotent Republicans limply acquiesce.
Tea party candidates fault...somehow.
Flawed math has nothing to do with Republicans not accepting tax hikes.
Are you being “unexpectedly” smart?
WTF, as in Winning The Future? No?
This "deal" fooled nobody who actually knows what the hell is going on
The boat is taking on water and this deal just slowed the sinking by a few minutes.
One positive note if they really do downgrade us, MAYBE Congress will actually get their shi* together and actual start to govern according to the best interest of the nation instead of their party.(mostly libtards)
"Ya shoor ya don't wanna reconsidah? I'd hate fuh sumthin unforchoonit to befalls ya...."
Since S&P’s first comments and continuing comments is NOT about “deficit reduction” but reduction in the US actual debt obligations.... that is a reduction in the debt ceiling... one can surmise that this ENTIRE news item is
PURE PROPAGANDA to tee up blaming republicans.
This is straight from the playbook. S&P has been saying for some time, as has Moody’s that it is the DEBT.
The “deficit” is a govt. term to describe the difference between what the govt takes in in taxes vs. what it cannot control— ridiculous spending. Since the revenue, even IF taxes are raised will not be enough to enable the US to meet its debt obligations... S&P will downgrade.
obama and fellow marxists are gaming this. Pure BS.
Sounds like Obama’s team is playing political games.
I’ll be interested in whether S&P goes along with this.
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