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.