Skip to comments.Moody's To US: Don't Skimp On Deficit Cuts, Or Else [Iceberg Ahead?]
Posted on 11/23/2011 9:39:47 PM PST by Steelfish
Moody's To US: Don't Skimp On Deficit Cuts, Or Else By Reuters Moody's Investors Service Wednesday warned that its top credit rating for the United States could be in jeopardy if lawmakers backtrack on $1.2 trillion in deficit cuts planned over 10 years.
The ratings firm said the failure of a U.S. congressional committee to reach an agreement on deficit reduction did not affect the Aaa rating, but any pullback from agreed automatic cuts to take effect starting in 2013 could prompt it to take action.
"While a change in the composition of the spending cuts would not be a major rating consideration, a reduction in the total amount that would increase the projected increase in federal debt over the coming decade could have negative rating implications," Moody's said in a statement.
On Monday, the 12-member congressional committee, split evenly between Democrats and Republicans, abandoned its effort to reach a deal, with both sides blaming the other for the impasse.
"Although the committee could have proposed considerably more than $1.2 trillion in deficit reduction measures, which would have been positive for the government's credit-worthiness, its failure to do so does not decrease the amount of deficit reduction already legislated," Moody's said.
(Excerpt) Read more at bottomline.msnbc.msn.com ...
Politicians are getting spanked for not being serious about cutting the national debt!
Now its time for some turkey!
There will be no cuts.
So Moody’s says we better slash the Military or else.
Oh boy, we are we screwed.
Stand by for a world of hurt.
They had better sober up and take us back to 2007 spending levels because we can not afford all that we are doing now.I’m sorry but you just can’t have 3 years of unemployment and everyone who has a child qualify for food stamps.There is not enough money.
It’s the Obamacare [characterization deleted]s!
The politicians will put our soldiers on food stamps. Problem solved.
Why cut programs that support the snail darter and frog crossings when we can muck with the military?
Planned excuse to cut the military and lower our shieled to the world. These are calculated moves planned in advance. Thier holding up the economy because it’s not the right time to allow it to fall.
The SS Hope and Change has already hit the iceberg. The ratings agencies are just tabulating the rise of the water.
U.S. politicians (and voters) will do nothing until the dollar ceases to be the de facto international currency.
Right now we can devalue the dollar at will to decrease our costs of goods and debt. The rest of the world must share in the loss.
When the day comes that the rest of the world demands to be paid in something other than dollars, our reality is going to get massively readjusted.
Moodys did not say cut anything specific, they just said serious cuts have to be made, which is true. It is the politicians who don’t have the guts to cut out the crap before even looking at cuts to the #1 job of the federal government as stated in the constitution. And with that, we are definitely screwed.
Worse yet, every carrier group we have except for two (out of 11) are in home port right now and that includes all but one of the 9 Assault ships as well. A couple of the assault ships are on port calls to Bali and Pearl Harbor. The rest are moored at the pier or in for maintenance.
Just one tactical nuke at Hampton Roads could effectively take out virtually all of the Atlantic fleet. What a bunch of friggin morons the idiots voted in office. I just have this very uneasy feeling about this because you know this has not been escaped by our enemies.
Scrapping 0bamacare will go a long way towards that goal.
Ever feel like we're moving back into the age of barterism? Might be an interesting essay in toying with the idea of money being valued only by the availability of goods and services and the value the goods and services hold among other goods and services. Sort of a Caste System of value.
Since money has been printed so freely without a Standard for its worth, we're pretty much there anyway,