Skip to comments.Moody's says U.S. needs to find more deficit cuts
Posted on 08/08/2011 6:17:21 AM PDT by markomalley
Ratings agency Moody's repeated a warning on Monday it could downgrade the United States before 2013 if the fiscal or economic outlook weakens significantly, but said it saw the potential for a new debt agreement in Washington to cut the budget deficit before then.
With U.S. markets still to open after rival Standard & Poor's stripped the United States of its AAA rating late on Friday, Moody's said in a statement its own decision to affirm the AAA rating on August 2 was on the condition that further cuts were found.
"For the Aaa rating to remain in place, we would look for further measures that would result in the ratio of federal government debt to GDP, for example, peaking not far above the projected 2012 level of near 75 percent by the middle of the decade and then declining over the longer term," Moody's analyst Steven Hess wrote in a report.
(Excerpt) Read more at reuters.com ...
|With the additional $238 billion the Treasury immediately borrowed when the debt ceiling was raised on August 2, total current debt now exceeds the US GDP for 2010! (GDP in 2010 was $14.5265 trillion.)|
They’ll just blame the TP..
The term “Deficit cuts” does not mean spending cuts. If they raise taxes 1 trillion, and then spend an additional 950 billion...the deficit has been “cut”.
Warren (a democRAT) abandoning ship? I heard he would give USA a quadruple AAAA rating if he could this A.M. Wonder who is talking beside Warren at Moody’s?
Moody’s has no guts and as a result are behind the curve. Not wanting to make political waves, they put their credibility at stake by maintaining the status quo. They will be looking for any excuse to downgrade the debt.
They can also start hammering Congress’ idiotic baseline budgeting.
Yes I am sure Obama will say their math is wrong as well. How sad.
It's required if we are to survive financially.
You can say that again! also, notice they did not say to raise revenue (TAXES) like Obama is itching so badly to do?
...”Don’t bogart that joint”!!!
gaydar maxed out everytime i see that pic...
I have never seen this picture. How could the richest man in the world King whatshisname finance this guy,prep him for politics and get him in Harvard? He is a dumb stoner that Farrakhan says is a messiah..
Moody`s Mark Gandy (or something like that) is a very good pal of the entire MSNBC Network, fairly regular guy on Morning Joe over the years, so I am suspect of Moody`s because of this, he Mark G? whatever, of Moody`s is a pal of MSM and supports Obama
Then why didn’t they come out and say raise revenue (taxes) to back obama all the way?
Yep, I read it that way too. Harry Reid and Brak 0bama want to increase the tax burden on an economy that is clearly headed into another recession and will produce even less tax revenue.
Up to now I waffled between 0bamunism as an economic philosophy as based on ignorance or malevolence. At this point the destruction of economy is nothing but deliberate malevolence.
The release of this “statement” by Moody’s tells me they were surprised and caught flat-footed by S & P.
...Thanks Mary, upppp, sorry, Ladyjane(-;>...
I am going to put my tin foil hat on and say that barry doesn’t really mind all this happening now. He is getting the downgrade out of the way during the summer and way before the election. All of these ratings agencies are still under threat of DOJ investigation/intimation for the 2008 market collapse. They are just in CYA mode and won’t be constantly pounding the dims on this issue.
For some reason, they just can’t fathom spending less.
Either it’s an ideological blindspot, or they have something nefarious in mind, because this out of control spending will destroy this country.
You absolutely are correct.
Behind the curve and way behind on credibility. Their pronouncements are forever more to be taken as politically tainted
I have no idea, just saying that young Mark G of Moody`s is a dirt bag Democrat.
Are you sure that Moody`s have never implied that the Democrat plan was not a way to go?
yet another racist ratings agency? \sarc
The Democrats will not allow any reform to Entitlements (Social Security, Medicare, Medicaid); or to Welfare programs.
So, good luck with that.
These are all the programs that the new Republican House has proposed cutting.
Corporation for Public Broadcasting Subsidy. $445 million annual savings.
Save America ‘s Treasures Program. $25 million annual savings.
International Fund for Ireland . $17 million annual savings.
Legal Services Corporation. $420 million annual savings.
National Endowment for the Arts. $167.5 million annual savings.
National Endowment for the Humanities. $167.5 million annual savings.
Hope VI Program.. $250 million annual savings.
Amtrak Subsidies. $1.565 billion annual savings.
Eliminate duplicative education programs. H.R. 2274 (in last
Congress), authored by Rep. McKeon, eliminates 68 at a savings of $1.3 billion annually.
U.S. Trade Development Agency. $55 million annual savings.
Woodrow Wilson Center Subsidy. $20 million annual savings.
Cut in half funding for congressional printing and binding. $47 million annual savings.
John C. Stennis Center Subsidy. $430,000 annual savings.
Community Development Fund. $4.5 billion annual savings.
Heritage Area Grants and Statutory Aid. $24 million annual savings.
Cut Federal Travel Budget in Half. $7.5 billion annual savings.
Trim Federal Vehicle Budget by 20%. $600 million annual savings.
Essential Air Service. $150 million annual savings.
Technology Innovation Program. $70 million annual savings.
Manufacturing Extension Partnership (MEP) Program. $125 million annual savings.
Department of Energy Grants to States for Weatherization. $530 million annual savings.
Beach Replenishment. $95 million annual savings.
New Starts Transit. $2 billion annual savings.
Exchange Programs for Alaska Natives, Native Hawaiians, and Their Historical Trading Partners in Massachusetts . $9 million annual savings. What the hell is this anyway ?
Intercity and High Speed Rail Grants. $2.5 billion annual savings.
Title X Family Planning. $318 million annual savings.
Appalachian Regional Commission. $76 million annual savings.
Economic Development Administration. $293 million annual savings.
Programs under the National and Community Services Act. $1.15 billion annual savings.
Applied Research at Department of Energy. $1.27 billion annual savings.
FreedomCAR and Fuel Partnership. $200 million annual savings.
Energy Star Program. $52 million annual savings.
Economic Assistance to Egypt . $250 million annually.
U.S. Agency for International Development. $1.39 billion annual savings.
General Assistance to District of Columbia . $210 million annual savings.
Subsidy for Washington Metropolitan Area Transit Authority. $150 million annual savings.
Presidential Campaign Fund. $775 million savings over ten years.
No funding for federal office space acquisition. $864 million annual savings.
End prohibitions on competitive sourcing of government services. Repeal the Davis-Bacon Act. More than $1 billion annually.
IRS Direct Deposit: Require the IRS to deposit fees for services it offers (such as processing payment plans for taxpayers) to the Treasury, instead of allowing payments to remain as part of its budget. $1.8 billion savings over ten years.
Require collection of unpaid taxes by federal employees. $1 billion total savings. WHAT THE HELL !
Prohibit taxpayer funded union activities by federal employees. $1.2 billion savings over ten years.
Sell excess federal properties the government does not make use of. $15 billion total savings.
Eliminate Mohair Subsidies. $1 million annual savings.
Eliminate taxpayer subsidies to the United Nations Intergovernmental Panel on Climate Change.$12.5 million annual savings.
Eliminate Market Access Program. $200 million annual savings.
USDA Sugar Program. $14 million annual savings.
Subsidy to Organisation for Economic Co-operation and Development (OECD).$93 million annual savings.
Eliminate the National Organic Certification Cost-Share Program. $56.2 million annual savings.
Eliminate fund for Obamacare administrative costs. $900 million savings.
Ready to Learn TV Program. $27 million savings.
Eliminate death gratuity for Members of Congress.
HUD Ph.D. Program.
Deficit Reduction Check-Off Act
TOTAL SAVINGS: $2.5 Trillion over Ten Years
Is there anything listed you cannot do without ?
The Tea Party obviously used some of its terrorist billions to buy Moodys and S&P.
That will be next bs mantra out of the mouths of the formerly elite left wingers in DC and of course their maggot infected Mediots of the MSM.
I have to admit, I can see why people want to hold on to some of those programs. Their great if you can afford them. I think a trip to Hawaii would do my family some good but we can’t afford to go so we do what we can afford.
Moodys in the past few years has been run by left wing criminals.
A few years ago when its auditors tried warn us about the crappy fanny/fredie bonds, Moody’s fired them and promoted criminal liberals.
Moody’s show be sued by everyone who lost money on the crap bonds issued by fanny/fredie.
Just because the US can print money at will does not make it fiscally sound. The rating agencies have waited as long as they could watching the frenzied orgy of spending when the Dem's had all three branches of power. Now the damage is done, the trillions of new debt is on the books, and there is no way the US can ever pay it back.
It is only a matter of time until S&P downgrades again, and I am sure Moody's will downgrade before that.
We are in for a recession that will see tent cities and soup lines springing up all over the country.
Such is the change promised by Barry Barack Hussein Soetoro Obama
Wow! NOTHING gets past the folks at Moody's...
Nah...we need more tax hikes!
Something tells me Democrats will sooner burn for a 100 years in the hell of their own creation then admit to the unpleasantness caused by their unconstitutional impositions.
But your right, we can save more then a trillion dollars in wasteful spending and many times more in regulations and taxes for the private economy if they just Kill Obamacare.
If Republicans had any backbone the repeal of that act of abomination (Obamacare) would be a precondition to any and all negotiation.
Yes, kill Obamacare.
Then Kill Foreign aid totally.
Place spending for Israel under Defense as they are our our only ally in the mideast and take all kinds of the aggression from Islam that’s aimed at us.
Have the public vote on Foreign aid on a country by country basis.
Eliminate the Alphabets and related ‘laws rules and regs’ except FBI/CIA
Open drilling.mining and jail any eco nut group that interferes
Short-mid term problem solved.
Rick Santelli Goes Off: Wed Be BBB Without Tea Party! (Video)
Gateway Pundit ^ | August 8,2011 | Jim Hoft
Posted on Monday, August 08, 2011 5:03:44 PM by Hojczyk
From the Video: Rick Santelli reacts to President Obamas blame game when it comes to the downgrade of the United States of Americas credit rating. Santelli says that if it wasnt for the tea party movement, Americas credit would have been downgraded to BBB.
He also responds to the argument that we have a revenue problem by comparing it to if his wife spending 30% more money then telling him to get 2 more jobs. Hat Tip Ed
Moody’s better be looking over its shoulder, because I get the feeling that all kinds of new probes, investigations and regulations are coming its way.
Maybe Moodys is watching and waiting to see what happens to S&P. Right after the downgrade, the senate banking commitee announced that they were going to “investigate” S&P. Boy the dims in the senate got right on that one and quick. S&P is already getting trashed by baraq and his media.
baraq’s plan for the debt is to destroy the messenger.
Sounds like the preamble to an epitaph for Moody’s. They’ll get it from both sides now - investors won’t trust them for their ratings not being independent, but ideological; and the administration and its zombie hordes will consider them evil, and ‘picking on’ the chosen one.
Moody's would do well define "cuts." Is that cuts as in spend less money next year than this year, or cuts as in reduce imperceptibly the whopping 8% rate of increase that's already cooked into the books for next year?
On the other hand, since Moody's is licensed by the Federal government, perhaps it would do better simply to define cuts as suggested by the powers-that-be-and-grant-ratings-licenses...