Posted on 03/15/2010 9:47:27 PM PDT by americanophile
The United States and other top world economies need to make potentially painful government spending cuts or risk losing the high-grade credit ratings that have kept borrowing affordable, the Moody's rating agency said Monday.
Outlining the dilemma faced by policymakers in the United States, Great Britain, Germany and France, Moody's said that debt levels in the four large credit-worthy economies had reached the point at which they are at risk of being downgraded -- a step that would drive up interest rates, increase borrowing costs and mark a turn in perceptions about the world economy.
Economic recovery might ease the problem by increasing tax revenue, Moody's reported, but "growth alone will not resolve an increasingly complicated debt equation. Preserving debt affordability at levels consistent with AAA ratings will invariably require fiscal adjustments of a magnitude that, in some cases, will test social cohesion."
The dollar rose against major currencies despite the report, a reminder of its continued role as the world's reserve currency.
(Excerpt) Read more at washingtonpost.com ...
They don't hear the people, they don't hear the question, they don't hear much of anything. That rumbling you hear approaching DC today -- that's not a train!
...were all screwed on this one.
Get your debt now. Inflation will be out of control.
Something wicked the US sent to itself.
“make potentially painful government spending cuts”
It’s like telling the dope fiend who just found a couple bricks of junk that they need to cut down. ; [
Hey, I suppose the money presses can always roll.
Oh yeah?
Well we’ll just pass a law saying you can’t do that Moody. :)
-liberal response
Rating agencies try to warn the politicians who have literally spent trillions staying elected and insulating power?
Good luck w/ that.
0bummerCare will cut spending!
< / sarc >
not that i disagree with them but....does anyone listen to moodys any more?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.