S&P: U.S. Debt Could Reach ‘Junk’ Rating by 2030, Absent Entitlement Reform

CNSNews ^ | 7/14/11 | Edwin Mora

[CNSNews]

(CNSNews.com) – U.S. federal debt could potentially be downgraded to junk status by 2030 if the government does not significantly reform entitlement spending, according to a study by Standard & Poor’s, one of the three Wall Street credit ratings agencies.

The S&P study, which shows the effects of rising entitlement-driven federal debt on the federal budget and debt rating, indicates that if entitlement costs are not brought under control soon, America will see its coveted AAA debt rating evaporate.

S&P said that the weight of retiring Baby Boomers would drive government debt to unsustainable levels, forcing the ratings agency to severely downgrade its U.S. debt rating.

[arrogantsob]

A twenty yr forecast? LOL.

[gundog]

I respectfully request that the words “could” and “may” be stricken from journalism.

[ex-snook]

I respectfully request that the words “could” and “may” be stricken from journalism

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Great comment. I would throw in ‘over the next x years’ [should be ‘in my administration’].

[Retired COB]

U.S. federal debt could potentially be downgraded to junk status by 2030 if the government does not significantly reform entitlement spending, according to a study by Standard & Poor’s

OK, so pay off the debt between now and then and don't borrow any more. At that point we don't care what Standard & Poor's or any other credit rating agency thinks of us.

[Qbert]

“We emphasize again that we do not expect the simulated ratings results to occur,” the study said. “Rather, we expect that U.S. policymakers will, at some point, make the policy changes needed to avoid such outcomes...”

The White House isn’t willing to offer any more than $2 Billion in real cuts for fiscal year 2012. Why would anybody think that this mentality is ever going to change in the future?