Skip to comments.Fitch Ratings warns of U.S. credit downgrade from fiscal cliff (Debt Ceiling to be reached soon)
Posted on 11/07/2012 8:27:45 AM PST by SeekAndFind
WASHINGTON -- Fitch Ratings said that there would be "no fiscal honeymoon" for President Obama, warning early Wednesday that the U.S. probably would lose its AAA credit rating if the White House and Congress don't address looming tax increases, spending cuts and the fast-approaching debt ceiling.
"The economic policy challenge facing the president is to put in place a credible deficit-reduction plan necessary to underpin economic recovery and confidence in the full faith and credit of the U.S.," said Fitch, one of the three major credit rating companies.
The expiration of the George W. Bush-era tax cuts and the start of automatic spending cuts to reduce the deficit -- a combination known as the fiscal cliff -- will take place Jan. 1. Most economists believe it will trigger another recession.
In addition, the government will hit its $16.4-trillion debt limit near the end of the year. Treasury officials said they can take steps to allow continued borrowing, but the nation would face a possible default early in 2013 if the limit isn't increased.
Obama and members of Congress have pledged to try to agree on a broad deficit-reduction plan to avoid the impact of the fiscal cliff, and such a deal most likely would include an increase in the debt limit.
But Tuesday's election sent mixed messages from the electorate. Obama was reelected on a platform of higher taxes for wealthy Americans. Republicans retained the majority in the House, running on a pledge of no tax increases.
Fitch said failure to come to a bipartisan agreement endangered the nation's credit rating. After the bitter fight over raising the debt limit in the summer of 2011, Standard & Poor's downgraded the U.S. rating to AA+ from AAA.
Fitch and Moody's Investor Services did not follow suit.
(Excerpt) Read more at latimes.com ...
But Moody's warned in September that failure to reach a deficit-reduction deal probably would lead it to downgrade the U.S. rating. And Fitch echoed that Wednesday.
if the White House and Congress don’t address looming tax increases
Oh, gee. Guess who will get the blame. Hint-not obama.
November 7, 2012 officially marks the beginning of Obama’s fault...
Newsflash to Congress! You know what we have if we don’t increase the debt ceiling?? A balanced budget! Yes, it’s just that simple.
Reduce spending levels to last year’s revenue level (basically around 2008 spending level). Nobody was being thrown out on the street or denied benefits in 2008.
The House should - by no means - ever vote to extend this President’s credit card again. Make him violate the Constitution to do what he wants then keep his regime tied uo in lawsuits. Make him wish he had never run for another four years.
Make him pay for his win. Revenge is a dish best served with subpoenas.
I believe some agreement will be done on the looming fiscal cliff before January 2013.
BUT IT WILL BE ON OBAMA’s TERMS BECAUSE OF THIS ELECTION.
Hence, those making $250,000 and over (Obama calls them the millionaires and billionaires ) will see a 4% tax increase. Taxes on Dividends will go up as well. Defense spending WILL take a huge hit ( HINT: Obama said to Medvedev ( captured on mic ) that after his election, he will be flexible towards them and this IS what he means flexibility ).
But numbers are numbers. WE WILL STILL BE ON TRACK TO PERMANENT TRILLION DOLLAR DEFICITS AND A DEBT LOAD OF AT LEAST $20 TRILLION.
America gets what she votes for.
Got spending cuts, House of Representatives?
“Oh, gee. Guess who will get the blame. Hint-not obama.”
Exactly what i was thinking, this POS and the rest of his barrel of snakes will not accept resposibility for anything ever.
A majority of voters voted for inflation, high unemployment, and more jobs losses via businesses closing down. They were told and wouldnt listen. We will point it out as it happens.
No biggie, just raise it. More on plastic please. I gottsta get mine...
As Bryan Preston of PJ Media observes:
Our future looks bleak. Our debt is a mortal threat. Unless we make radical positive changes to the structure of our government, now, Obama will rack up another four to six trillion dollars in debt over the next four years.
Obama will not make the necessary changes and he will not allow them to be made as long as he is president. He has already said that he believes in raising taxes on job creators, and he will use re-election to push for that. Even though it makes no economic sense at all.
The amazing thing is, Obama told us that his economic policies werent based on economics before he was ever elected president. Then he kept doubling down on non-economics as fairness. And he kept winning.
What does this say about a majority of Americans?
The Tea Party suicidal streak has to stop along with recruiting terrible candidates in the primaries. We had two winnable seats in 2010 thrown away and at least two more in 2012.
Congress should tell obama “We signed off on sequestration. We extended the Bush tax cuts for ONE year. We gave you everything you wanted last year. So theres nothing else for us to do. Everyones taxes is going up and spending is dropping like a rock. Its not where we wanted spending to be cut but we were just trying to be bi-partisan.
obama wants to destroy this country. But it won’t work if he tries to do it all at once. That’s why he needed four more years. I say give it to him all at once and watch the masses rise up. Maybe there’ll be enough left to start a new country based on the old one.