The regime of Barack Hussein Obama has been put on notice. Unless substantial Debt reduction is propose when the US votes top raise the debt ceiling, Moodys will lower the US bond rating. Should this happen, interest rates will skyrocket and many creditors will stop lending the US money.
Moody’s ratings agency warned Thursday that it probably would have to downgrade the U.S. government’s debt rating unless the White House and Congress work out a “credible agreement on substantial deficit reduction” by the middle of next month.
In its stark statement, Moody’s – one of the three big ratings agencies that help determine how easy it is for the government to borrow money – said the fight over raising the debt ceiling is worse then expected, and that’s increased the risk that the government will default on its debt.
Just as significantly, the agency said if lawmakers miss this chance to lower deficits, then no deal will get done before the 2012 elections. So Moody’s set a mid-July deadline for progress on a deal, or else it said a downgrade of the U.S. rating “is likely.”
This should give Speaker Boehner ammo to use in the negotiations. However, since he’s a polcitical Eunuch, he will just roll over as he always does. it is up to Barack Hussein Obama to heed Moodys warning and d
Tags: Budget deficit, Credit ratings, Debt Crisis, Moodys
