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Moody's: Abolish the debt limit
Politico ^ | 7/18/11 | Jennifer Epstein

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, Moody’s 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.

Moody’s 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, Moody’s 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 ...


TOPICS: Business/Economy; Extended News; Government
KEYWORDS: debtceiling; debtlimit; moodys
If there was any question before where Moody's loyalties lie, this should settle all doubt.

Can you imagine having a credit card with no limit and only the requirement to pay off the 6% interest payments?

1 posted on 07/18/2011 4:55:39 AM PDT by markomalley
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To: markomalley

Can you imagine a constitutional system without checks and balances?


2 posted on 07/18/2011 4:59:45 AM PDT by gusopol3
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To: markomalley

Who are these people and who stole their brains?


3 posted on 07/18/2011 5:00:15 AM PDT by McGavin999 ("I was there when we had the numbers, but didn't have the principles"-Jim DeMint)
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To: markomalley
On a related note, from last year....

SEC Won't Sue Moody's

4 posted on 07/18/2011 5:01:10 AM PDT by mewzilla (Forget a third party. We need a second one.)
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To: markomalley

How about - Abolish the Debt?


5 posted on 07/18/2011 5:01:20 AM PDT by listenhillary (Social Justice is the epitome of injustice.)
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To: markomalley

.....all said to let Dumbo off the hook!


6 posted on 07/18/2011 5:09:18 AM PDT by Doogle ((USAF.68-73..8th TFW Ubon Thailand..never store a threat you should have eliminated))
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To: markomalley

Looks to me like having a debt limit would create a “period of certainty” rather than a “period of uncertainty”


7 posted on 07/18/2011 5:12:16 AM PDT by netguide (Use this browser instead of Internet Exploder)
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To: markomalley

I agree 100%. They should fight this out on the floor of the House. These secret meeting SUCK!


8 posted on 07/18/2011 5:12:47 AM PDT by screaminsunshine (Socialism...Easier said than done.)
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To: markomalley

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.


9 posted on 07/18/2011 5:14:20 AM PDT by maddog55 (OBAMA: Why stupid people shouldn't vote.)
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To: gusopol3

Checks and balances are only as good as the government that abides by them and this government does not.


10 posted on 07/18/2011 5:15:35 AM PDT by maddog55 (OBAMA: Why stupid people shouldn't vote.)
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To: gusopol3
Can you imagine a constitutional system without checks and balances? GREECE
11 posted on 07/18/2011 5:15:39 AM PDT by Doogle ((USAF.68-73..8th TFW Ubon Thailand..never store a threat you should have eliminated))
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To: markomalley

This isn’t satire?


12 posted on 07/18/2011 5:18:43 AM PDT by Pearls Before Swine
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To: maddog55
I’ve got one called American Express. No credit limit and based only on your ability to pay it off..

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.

13 posted on 07/18/2011 5:19:19 AM PDT by markomalley (Nothing emboldens the wicked so greatly as the lack of courage on the part of the good-Pope Leo XIII)
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To: markomalley

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.


14 posted on 07/18/2011 5:21:11 AM PDT by 9YearLurker
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To: mewzilla
And this is from last month, a British paper....

SEC investigates role of ratings agencies Moody's and Standard & Poor's ahead of the financial crisis

15 posted on 07/18/2011 5:21:42 AM PDT by mewzilla (Forget a third party. We need a second one.)
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To: markomalley

I would think that not raising the debt ceiling would make the current bond holders even more secure.


16 posted on 07/18/2011 5:24:57 AM PDT by SeaHawkFan
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To: markomalley

Remarkable.

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.


17 posted on 07/18/2011 5:25:14 AM PDT by PogySailor (The ruling class will not go down easily. And neither will their paid hacks.)
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To: markomalley

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.


18 posted on 07/18/2011 5:25:22 AM PDT by maddog55 (OBAMA: Why stupid people shouldn't vote.)
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To: netguide

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.


19 posted on 07/18/2011 5:30:05 AM PDT by C210N (0bama, Making the US safe for Global Marxism)
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To: markomalley

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.


20 posted on 07/18/2011 5:54:42 AM PDT by isthisnickcool (Sharia? No thanks.)
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To: Doogle

“.....all said to let Dumbo off the hook!”

WARNIYNG....

“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 . .


21 posted on 07/18/2011 5:59:14 AM PDT by mosesdapoet ("To punish a province Let it be ruled by a professor " Frederick The Great paraphrased)
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To: markomalley

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.


22 posted on 07/18/2011 6:05:33 AM PDT by Pit1 (Obozo. We don't need more taxes. We need more taxpayers.)
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To: Doogle

Can you imagine a constitutional system without checks and balances? GREECE

Germany, just before WWII.


23 posted on 07/18/2011 6:06:14 AM PDT by chainsaw (I'd hate to be a democrat running against Sarah Palin.)
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To: markomalley
The United States should do away with the debt ceiling altogether to bring greater certainty to investors in U.S. Treasury bonds, Moody’s suggested Monday.

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.

24 posted on 07/18/2011 6:10:09 AM PDT by Tribune7 (We're flat broke, but he thinks these solar shingles and really fast trains will magically save us.)
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To: markomalley

Might as well. It is a farce now, and is going to collapse sooner or later.


25 posted on 07/18/2011 6:12:47 AM PDT by redgolum ("God is dead" -- Nietzsche. "Nietzsche is dead" -- God.)
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To: markomalley

Abolish Moody’s.


26 posted on 07/18/2011 6:34:48 AM PDT by Rapscallion (Where did the civil and rational Ameica go?)
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To: Rapscallion

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.


27 posted on 07/18/2011 6:53:27 AM PDT by Revel
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To: markomalley

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.

LLS


28 posted on 07/18/2011 7:00:04 AM PDT by LibLieSlayer ("GIVE ME LIBERTY OR GIVE ME DEATH"! I choose LIBERTY and PALIN!)
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To: PogySailor

Watch where you park that wheelbarrow. Some will dump the cash it holds and steal the wheelbarrow, worth more.


29 posted on 07/18/2011 7:03:08 AM PDT by going hot (Happiness is a momma deuce)
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To: markomalley

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.


30 posted on 07/18/2011 7:16:15 AM PDT by Vermont Lt
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To: mewzilla

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.


31 posted on 07/18/2011 7:16:56 AM PDT by Sal (Islamo Bamma is the star, writer, director and producer of AS THE WORLD BURNS.)
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To: markomalley

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?


32 posted on 07/18/2011 7:34:34 AM PDT by noinfringers2
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33 posted on 07/18/2011 7:37:46 AM PDT by TheOldLady (FReepmail me to get ON or OFF the ZOT LIGHTNING ping list.)
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To: markomalley

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.


34 posted on 07/18/2011 8:42:01 AM PDT by LyinLibs (All moslems are somewhere on the killing-you spectrum)
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To: gusopol3
Can you imagine a constitutional system without checks and balances?

I think some liberal Brit already wrote a song about that.

35 posted on 07/18/2011 9:18:31 AM PDT by Thane_Banquo
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To: mewzilla

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.


36 posted on 07/18/2011 9:23:03 AM PDT by Thane_Banquo
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To: noinfringers2
Since when did the people of the USA become subservient to a group of financial marketeers.

When George Washington named Alexander Hamilton as his Secretary of the Treasury. Washington's lone major mistake while in office.

37 posted on 07/18/2011 9:24:24 AM PDT by Thane_Banquo
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To: markomalley

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

3) Medicare

4) Medicaid

etc

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.


38 posted on 07/18/2011 9:37:06 AM PDT by PapaBear3625 (When you've only heard lies your entire life, the truth sounds insane.)
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To: markomalley
I, dbehsman, hereby declare that Moody's credibility has been lowered to F-. I have just as much credibility as anyone else. Obviously a bunch of stoners have taken over after Moody's gloriously failed in rating Mortgage Backed Securities in 2006 (incidentally, a blind man could have seen that one coming).
39 posted on 07/18/2011 10:53:33 AM PDT by dbehsman (If Romney McMilquetoast is the best the Republican party can do, they deserve to be exterminated.)
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To: mosesdapoet

"fhtiip"

40 posted on 07/18/2011 11:04:30 AM PDT by Doogle ((USAF.68-73..8th TFW Ubon Thailand..never store a threat you should have eliminated))
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To: markomalley

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.


41 posted on 07/19/2011 3:38:54 PM PDT by moshiach
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To: AdmSmith; AnonymousConservative; Berosus; bigheadfred; Bockscar; ColdOne; Convert from ECUSA; ...
Note: this topic is from 7/18/2011. Thanks markomalley.
American Taxpayers: Abolish Moody's.


42 posted on 09/04/2011 8:35:13 AM PDT by SunkenCiv (It's never a bad time to FReep this link -- https://secure.freerepublic.com/donate/)
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