Skip to comments.Moody's: Abolish the debt limit
Posted on 07/18/2011 4:55:37 AM PDT by markomalley
The United States should do away with the debt ceiling altogether to bring greater certainty to investors in U.S. Treasury bonds, Moodys suggested Monday.
With the August 2 deadline for raising the debt ceiling barely more than two weeks away, the bond-rating agency issued a report Monday noting that the U.S. is one of just a few countries that has a statutory borrowing limit and saying that the limit creates periodic uncertainty for investors, Reuters reported.
Moodys threatened last week to downgrade the AAA rating of the U.S. government if it is unable to meet its debt obligations next month and perhaps even if Congress and the White House are able to reach a deal.
In the past, Moodys has considered the risk of U.S. default on its debts very low because Congress has routinely approved hikes to the debt limit, but with negotiations between President Barack Obama and congressional Republicans at an impasse, the agency is less confident.
(Excerpt) Read more at politico.com ...
Can you imagine having a credit card with no limit and only the requirement to pay off the 6% interest payments?
Can you imagine a constitutional system without checks and balances?
Who are these people and who stole their brains?
How about - Abolish the Debt?
.....all said to let Dumbo off the hook!
Looks to me like having a debt limit would create a “period of certainty” rather than a “period of uncertainty”
I agree 100%. They should fight this out on the floor of the House. These secret meeting SUCK!
I’ve got one called American Express. No credit limit and based only on your ability to pay it off.. I however, live within my means.
Checks and balances are only as good as the government that abides by them and this government does not.
This isn’t satire?
Number 1: AMEX, unless things have changed a lot, is not a credit card, it is a charge card. You are required to pay the balance every month.
Have you ever failed to pay off the balance every month? I know, for my corporate AMEX, if I am not on time (for example, if finance doesn't reimburse my travel expenses on time), I may end up getting my card suspended. Maybe not immediately on the due date but not too long afterwards.
I actually think they’ve got a point.
Nothing can be spent by the US government if it isn’t first appropriated by Congress, and obviously the debt limit does nothing to limit the amount that Congress appropriates.
I would think that not raising the debt ceiling would make the current bond holders even more secure.
We’ll need wheelbarrows of “dollars” soon to buy a loaf of bread. I noticed that gas jumped about $0.06 overnight here in my part of Florida.
Misstatement on my part but that’s why I use it. It’s the only card I have and it has to be paid every month.
You can get a revolving Amex but that ain’t happening with me.
If the house really was interested in instituting a period of certainty, it could pass legislation setting the debt ceiling at $14.3 Trillion. Setting it to where it currently is draws a political and economic line in the sand. It also gives a wink to the voters that brought in the latest crop of reps that they hear us.
The rating agencies were up to their eyeballs in the bundled mortgage fiasco. They are saying whatever Obama wants them to say. They would do otherwise at their own peril.
“.....all said to let Dumbo off the hook!”
“Dumbo” is a registered trade mark of the Disney Corp and is an elephant which has been used as a symbol of the Republican Party.
Use of the term to apply to a big eared jackass ; jackass a symbol of the Democrat/Socialist party, may be subject to misuse of a registered trademark and subject to legal suit by the injured groups which may include defenders of The Elephant Defamation League . .
Abolish Moody. Screw these agency’s calling the shots. We the people are the CEO’s of this country. The government and their buddy’s in banking are choking us to death.
SOS. Sarah get here quick. And let’s clean house in congress. Get rid of all the lawyers, carreer jerks and let the fresh air in. Now more than ever, we need to stand our ground.
Sunny days are a comin. 2012 the horse dung will be scraped out of DC.
Can you imagine a constitutional system without checks and balances? GREECE
Germany, just before WWII.
How is refusing to accept more Treasury Bonds going to hurt those hold existing bonds?
Either Moody's is totally in the tank for the corrupt SOBs who want o milk this country dry or Politico is distorting what it says.
Might as well. It is a farce now, and is going to collapse sooner or later.
Go after all 3 of the ratings agencies for selling the ratings that led to the crash. This proves once again that the ratings are not based on mathematical facts. In this case they are political. And guess which political group has control of it.
ALL of these companies need to be investigated if sanity returns to government and we elect proper Americans... which is to say that the chances of that happening are very slim.
Watch where you park that wheelbarrow. Some will dump the cash it holds and steal the wheelbarrow, worth more.
I would love to have a credit card with no limits, and only a 6% interest rate.
I would run it up....and then take off to a country without extradition.
Excellent link in #15! I hope everybody reads it and begins to understand just how widespread the corruption and complicity is. The “watchdogs” are as dirty as the scum we already knew about.
Since when did the people of the USA become subservient to a group of financial marketeers. That any group like Moody could be a deciding force on the fortunes of people of the USA demonstrates how far we have digressed from being an exceptional Nation to a whipping boy for international bankers. Would Soros by any chance be involved with such shenanigans?
Is Moody’s campaigning for 0bama?
Will a Moody’s rep knock on my door and ask me to donate to “Omoslem 2012?”
Moody’s has just forfeited all credibility.
I think some liberal Brit already wrote a song about that.
Moody’s and S&P were basically giving sub-prime bonds whatever ratings the banks told them to. Goldman basically said, “Here’s our bond. We think it is AAA. Here’s the model we used. We suggest you use it.” The rating agencies complied because they get so much busine$$ from the banks. In a just world, they would be prosecuted for fraud.
When George Washington named Alexander Hamilton as his Secretary of the Treasury. Washington's lone major mistake while in office.
Better idea: pass legislation that says that, in the event that there’s not enough available cash to pay everything, then the order of payment must be:
1) Debt interest payment
2) Social Security
I would put out a bill that specified the first two first, followed by bills that refined the list.
Let Obama veto it if he chooses, and try to spin his decision.
Moody’s is the same ratings agency that rated AIG triple AAA; while AIG was insuring billions of sub-prime mortgage backed securities; which Moody’s also triple AAA rated.
Hey why work for a living when you can just create one big circle jerk with the US taxpayer in the middle. Moody’s a triple-FFF fail.
Note: this topic is from 7/18/2011. Thanks markomalley.American Taxpayers: Abolish Moody's.