So if we keep borrowing to pay our debts, we’ll keep our triple A credit rating? This is insane. It’s like Visa telling you that you have maxxed out 5 credit cards and if you don’t take out a 6th to pay for them, they’ll ruin your credit rating.
RE: So if we keep borrowing to pay our debts, we’ll keep our triple A credit rating?
I believe the current ratings downgrade warning from Moody’s and S&P is pressuring both sides to come to a deal about INCREASING the debt ceiling.
Let’s say we DON’T increase the debt ceiling... what then? What possible reason could Moody’s and S&P give to downgrade our credit rating?
We have more than enough revenue to pay our debts, send out Social Security Checks and support Medicare/Medicaid and our Veterans and even Defend ourselves.
What we DON’T HAVE is MONEY to maintain the rest of government.
So, what do we do? For one, we can either :
A) CUT THE BUDGET OF EVERY DEPARTMENT BY 20%
or
B) ELIMINATE AGENCIES AND DEPARTMENTS WHICH DON’T MEET THEIR MANDATE ( e.g. Department of Energy and Department of Education ).
HOW DOES THAT AFFECT OUR CREDIT RATING?
So, if Moody’s insist that we increase our debt ceiling, give them the finger.
BTW, I don’t see anyone dumping US treasuries after their warnings. The market knows that the whole thing is worthless. It is just a demand for the US to increase the debt ceiling.