Moody’s Investors Service put the U.S. under review for a credit rating downgrade as talks to raise the government’s $14.3 trillion debt limit stall, adding to concern that political gridlock will lead to a default.
The Republicans had better not fall for this threat. Moody’s, and the rest of the Wall Streeters are Obama’s biggest supporters. Hence, they dont want their gravy train to end.
Well, go ahead, Moody’s downgrade the US debt. I dare you. This means that your boy the man-child Obama will be the ONLY US President to have managed to gum up the works so badly that bonds getr downgraded. DO IT MOODY’S. PLEASE!!! The fallout from a downgrade would be an epic and indelible reminder of the failure that is Barak Hussein Obama.
It will make a lovely campaign commercial. 66% of the American public want no more debt ceiling raises. Time to pay the piper.
And for once, Boehner ‘gets it’
“As Speaker Boehner has warned for months, if the White House does not take action soon to address our nation’s debt crisis by reining in spending, the markets may do it for us,” said Michael Steel, spokesman for House Speaker John Boehner, Republican of Ohio. “This action by Moody’s today reinforces the Speaker’s warning.”
Standard & Poor’s put the U.S. government on notice on April 18 that it risks losing its AAA credit rating unless policy makers agree on a plan by 2013 to reduce budget deficits and the national debt. The firm said at the time that there’s a one-in-three chance that the rating might be cut within two years and that its “baseline assumption” is that Congress and the Obama administration will come to terms on a plan to reduce record deficits.
S&P would lower its sovereign top-level AAA ranking to D, the last rung on its scale if the U.S. can’t pay its payments because of a failure to raise the debt ceiling, John Chambers, chairman of the company’s sovereign rating committee, said June 30. Moody’s said it would probably assign a position in the Aa range, or within three steps of its highest level.
COLDWARRIOR UPDATE:
OBAMA: THIS WILL BRING DOWN MY PRESIDENCY
and
US Will Keep Paying Bondholders After Aug. 2: Bernanke
Federal Reserve Chairman Ben Bernanke on Wednesday said the United States would keep paying interest on government debt if Congress failed to reach a deal to lift the debt ceiling by Aug. 2.
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AP
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The central banker’s comments offered the first public indication of how the Obama administration would prioritize its financial obligations after Aug. 2, when the U.S. Treasury says the government would run out of money to pay all its bills.
“The assumption is that as long as possible, the Treasury would want to try to make payments on the principal and interest to the government debt, because failure to do that would certainly throw the financial system into enormous disarray and have major impacts on the global economy,” Bernanke said.
