Moody's says U.S. needs to find more deficit cuts

Reuters ^ | Mon Aug 8, 2011 | Walter Brandimarte

[markomalley]

Ratings agency Moody's repeated a warning on Monday it could downgrade the United States before 2013 if the fiscal or economic outlook weakens significantly, but said it saw the potential for a new debt agreement in Washington to cut the budget deficit before then.

With U.S. markets still to open after rival Standard & Poor's stripped the United States of its AAA rating late on Friday, Moody's said in a statement its own decision to affirm the AAA rating on August 2 was on the condition that further cuts were found.

"For the Aaa rating to remain in place, we would look for further measures that would result in the ratio of federal government debt to GDP, for example, peaking not far above the projected 2012 level of near 75 percent by the middle of the decade and then declining over the longer term," Moody's analyst Steven Hess wrote in a report.

[BobP]

Cut this:

Obama: We're Not Even Halfway There Yet

With the additional $238 billion the Treasury immediately borrowed when the debt ceiling was raised on August 2, total current debt now exceeds the US GDP for 2010! (GDP in 2010 was $14.5265 trillion.)

[Recon Dad]

They’ll just blame the TP..

[airborne]

Kill ObamaCare!

[icwhatudo]

The term “Deficit cuts” does not mean spending cuts. If they raise taxes 1 trillion, and then spend an additional 950 billion...the deficit has been “cut”.

[no-to-illegals]

Warren (a democRAT) abandoning ship? I heard he would give USA a quadruple AAAA rating if he could this A.M. Wonder who is talking beside Warren at Moody’s?

[no-to-illegals]

never mind ... saw who is talking in the report. I have to learn to read more clearly. Wonder if Warren will fire Moody's analyst Steven Hess? democRATS do not take kindly to dissension in the ranks.

[mlocher]

Moody’s has no guts and as a result are behind the curve. Not wanting to make political waves, they put their credibility at stake by maintaining the status quo. They will be looking for any excuse to downgrade the debt.

[Scanian]

They can also start hammering Congress’ idiotic baseline budgeting.

[Dubya-M-DeesWent2SyriaStupid!]

Yes I am sure Obama will say their math is wrong as well. How sad.

[EGPWS]

Kill ObamaCare!

It's required if we are to survive financially.

[Dubya-M-DeesWent2SyriaStupid!]

You can say that again! also, notice they did not say to raise revenue (TAXES) like Obama is itching so badly to do?

[EGPWS]

The stops here!

[devolve]

- A CERTAIN SMILE -

[gargoyle]

...”Don’t bogart that joint”!!!

[Gilbo_3]

gaydar maxed out everytime i see that pic...

[Dubya-M-DeesWent2SyriaStupid!]

I have never seen this picture. How could the richest man in the world King whatshisname finance this guy,prep him for politics and get him in Harvard? He is a dumb stoner that Farrakhan says is a messiah..

[Friendofgeorge]

Moody`s Mark Gandy (or something like that) is a very good pal of the entire MSNBC Network, fairly regular guy on Morning Joe over the years, so I am suspect of Moody`s because of this, he Mark G? whatever, of Moody`s is a pal of MSM and supports Obama

[Dubya-M-DeesWent2SyriaStupid!]

Then why didn’t they come out and say raise revenue (taxes) to back obama all the way?

[Eva]

Repeal Obamacare!