Posted on 12/12/2009 3:11:38 PM PST by reaganaut1
It took the Obama administration less than a year to reduce the United States from the country with a currency that is considered a safe haven when international storms threaten, to one that is warned by a rating agency that unless it mends its profligate ways it will lose the triple-A credit rating it has had since U.S. government debt was first assessed in 1917. Who would have thought when Barack Obama took the oath of office some eleven months ago that Dubai World, Greece, the UK, and America would attract the attention of the rating agencies in the same week.
But here we are, caught in what consultants at The Lindsey Group call an Attack on the Sovereigns. Greece was downrated because its fiscal deficit is 12% of GDP, and the European Central Bank is tired of buying its banks paper. Ireland and Spain, which also have deficits equal to 12% of their GDP, were put on negative credit watch. America is a member of the 12% club, running a deficit every bit as large relative to its GDP as Greece, Ireland and Spain, but being America, with a reserve currency that central banks and others still hold and want to hold in huge amounts, was granted a reprieve. Although our public finances are deteriorating considerably, [and] the question of a potential downgrade of the US is not inconceivable, says Pierre Cailleteau, chief international economist at Moody's, such a move is not imminent. Moody's US analyst, Steven Hess, says, "If no policy changes are made, in ten years from now we would have to look very seriously at whether the U.S. is still a triple-A credit. Of particular concern are the projected increases in health care and Social Security costs."
(Excerpt) Read more at weeklystandard.com ...
Obama's Chicago thugs would pressure the rating agencies not to downgrade the U.S.
“Moody’s US analyst, Steven Hess, says, “If no policy changes are made, in ten years from now we would have to look very seriously at whether the U.S. is still a triple-A credit.”
I seriously doubt it will take 10 years at this rate of spending Mr. Hess.
Basically, the US and the UK are in danger of defaults.
http://www.zerohedge.com/article/citi-blasts-moodys-optimism-says-uk-aaa-rating-doomed
http://www.zerohedge.com/article/peter-costa-us-government-will-be-totally-bankrupt-year-and-half
Obama have taken a situation that was merely bad and made it much, much worse.
And what is MOODYs Rating? They have lied and played politics in the past.
Moody’s corporate headquarters is in the USA... New York. Anything less than triple A, regardless of the reality, with these politicians in charge would be corporate suicide.
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