Posted on 07/30/2011 10:06:14 AM PDT by MontaniSemperLiberi
The "limited magnitude" of both debt plans put forward by congressional leaders would not put the nation's AAA credit rating back on solid footing, Moody's Investors Service announced Friday.
"Reductions of the magnitude now being proposed, if adopted, would likely lead Moody's to adopt a negative outlook on the AAA rating," the credit rating agency said in a new report. "The chances of a significant improvement in the long-term credit profile of the government coming from deficit reductions of the magnitude proposed in either plan are not high."
It added that "prolonged debt ceiling deliberations" have increased the odds of a downgrade, but that the firm is still confident policymakers will avoid a default.
"It remains our expectation that the government will continue with timely debt service," the firm said. It also clarified that as far as it is concerned, the nation will only default if it misses an interest or principal payment on U.S. debt, not if it misses payments on other obligations like federal employee salaries or Social Security benefits.
The report also gives credence to a claim popular among Republicans: that the government has enough cash to avoid a default even past the Aug. 2 deadline set by the Treasury Department.
"If the debt limit is not raised before August 2, we believe that the Treasury would give priority to debt service payments and could thus postpone a potential debt default for a number of days," it said. "Revenues would be more than adequate for some period of time to meet those payments, although other outlays would be severely reduced as a result."
(Excerpt) Read more at thehill.com ...
Look at the unsustainable spending by government:
http://confoundedinterest.wordpress.com/
And look at Social Expenditures (aka, welfare state) growth. WOW!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Go figure.
NO MORE DEBT INCREASES!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Moody’s says US should retain top credit rating
http://www.freerepublic.com/focus/f-news/2756225/posts
somebody is not being truthful
The AAA rating is a lie, anyway. Anyone, country, etc. who runs their finances the way our government does doesn’t deserve a high rating.
Wondering who is getting paid off or pressure being put on whom too keep it at AAA. Fools are anyone who believes that everything is peachy. AAA = peachy.
Didn’t we learn from the banking collapse of a couple of years ago? Misrepresentation of loans and assets created the banking collapse. And we continue the same with our Federal budget and debt.
FOOLS!
The rating services seemed to start all this sturm und drang about the collapse of the world as we know it IF CONGRESS DIDN’T ACCEPT THE DEMS POLICY.
Now, having looked into the abyss they have created, they seem to be pulling back from the edge and saying, “ Hey, fellows, we were only kidding. Life will go on.”
How about lying. Maybe someone is being paid off.
Apparently we didn’t learn from the banking collapse of a couple of years ago.
>>Neither debt plan protects the nation’s AAA rating<<
I file that under “No sh!t Sherlock.”
That’s why I’e been down on BOTH parties on this so hard.
Exactly. Where else would an entity that takes on debt to pay off debt be given a strong credit rating?
The jackasses at S & P and Moody’s wouldn’t dare screw with America’s credit rating. This crap is just a bunch of commie BS used to scare the old folks into demanding that Barry and his Socialists are allowed to steal more of other people’s money. The boys at S&P and Moody’s are smart enough to know that if you screw around with America’s rating, the entire global economy goes into the toilet. They wouldn’t risk it with their stupid “rating”. Sorry boys, you and your “credit ratings” don’t scare me. This credit rating crap is all politics, IMHO!
Let me be perfectly blunt. Anyone who buys U. S. Government bonds in the notion that they are as secure as an alertly rated AAA Corporate Bond from a country with sounder monetary policy, is naive in the extreme. With the Keynesian monetization of the out of control Federal debt, the only question is how soon, the purchaser takes a terrible bath.
I suspect, that were it not for fear of the rancor they might expect from the political establishment, the rating agencies would long ago have dropped the triple A rating to something far lower. The rhetoric coming out of the Administration on the subject is designed to panic people who simply do not recognize from whence comes the real threat, or the extent of what those in this Administration have already achieved in destroying the wealth of rooted Americans.
As for the Administration's argument on taxation, note how much damage has already been done to American reserves by a Capital Gains Tax, not indexed to inflation: Capital "Gains".
The Founding Fathers would clearly have deemed this stealing. So do I.
William Flax
CCB.
Pass it, or lose the AAA rating.
Moody will do anything to support getting and keeping the communists takeover of America.
Look at Obama’s discretionary spending. That is up over 35%.
If one looks up all the welfare plans thrown under Social Security it is mind boggling. How is SCHIP Social Security?The Dems told SCHIP to quit asking for ID’s cause it might offend some. They just give a name and social security # now.
he who hath the printing press gets AAA rating....always!
I think you’re right. The US will lose its AAA rating when those required to purchase AA bonds no longer want to purchase US bonds.
I posted a thread yesterday that there are two scenarios where we retain our rating. One is a short term Republican lead sprint to get the deficit down. The other is a longer term bipartisan agreement to get the debt down.
Most don’t realize that it is a lie. You’d think that investors who have billions invested would know.
I guess the only positive is that, in spite of how screwed up we are, we are still the best bet in town.
IMPORTANT: long term investors must be >>HAPPY<< that we are finally looking at the debt situation seriously. I don’t see the situation as a negative but a positive. Something that could make us an even better investment once it is sorted out for the better.
Reminder: Democrats existence is directly tied to their ability to spend (give things to their constituents). Exactly what is wrong with the Federal Government, IMO. Try minimize spending and they will fight it to the “death.”
Will Conservatives have the guts to hang in there and be willing to fight to the end.
After some poking around, my guess is that it’s the Associated Press article. I registered at Moody.com to get the original statements but it requires payment. Reading through the AP article, they quote a sentence fragment from Moody’s then some analyst to make their point. The original post here had many more quotes from Moody’s and is clearer.
Should have read.....
“The US will lose its AAA rating when those required to purchase AAA bonds no longer want to purchase US bonds.”
Not enough A’s in my previous post.
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