Our lowering of the rating was prompted by our view on the rising public debt burden and our perception of greater policy making uncertainty, consistent with our criteria (see “Sovereign Government Rating Methodology and Assumptions,” June 30, 2011, especially Paragraphs 36-41). Nevertheless, we view the U.S. federal government’s other economic, external, and monetary credit attributes, which form the basis for the sovereign rating, as broadly unchanged.
We have taken the ratings off CreditWatch because the Aug. 2 passage of the Budget Control Act Amendment of 2011 has removed any perceived immediate threat of payment default posed by delays to raising the government’s debt ceiling. In addition, we believe that the act provides sufficient clarity to allow us to evaluate the likely course of U.S. fiscal policy for the next few years.
Republicans and Democrats have only been able to agree to relatively modest savings on discretionary spending while delegating to the Select Committee decisions on more comprehensive measures. It appears that for now, new revenues have dropped down on the menu of policy options. In addition, the plan envisions only minor policy changes on Medicare and little change in other entitlements, the containment of which we and most other independent observers regard as key to long-term fiscal sustainability.
READ MORE :washingtonpost.com
If this is a surprise to you, then you are just flat out stupid, and no, I’m not sorry if that statement offends you at all. The United States has NO ability to fund one single program it runs without borrowing money from some other entity, none. It wouldn’t matter if they taxed every single wealthy person at 100% either, the fact of the matter is that we have absolutlety no ability to pay for one single thing without taking out a proverbial loan. In fact the United States actually borrows money to pay for borrowed money, it’s been doing it for decades.
Yet we were all told that raising the debt ceiling would avert this “disastrous downgrade”, remember all that B.S. our political figures spewed? Yeah? Well they were wrong, again, and people need to stop listening to their hyperbolic bullshit. They have no idea what they are talking about. Take a look at this interview with “Turbo Tax” Tim Geithner, our current Treasurey Scretary…
No risk eh? Timmy? Seriously, you can’t make up things like this. People in our government are deeply stupid….
Whether it’s our President claiming that spending trillions of dollars on “stimulus” that has no chance in hell of working, or some Neo-Con idiot like Lindsay Graham harping about the need to spend trillions in unconstitutional wars. People in this country just buy into every last bit of it, drool spilling out of their mouths as they watch our politicians say meaningless buzzwords like “change”, or “hope”. They have no idea what in the hell is happening right now, and they have been clueless about everything else for decades.
Does the Downgrade matter? To some it will, most people won’t care, and the ones that know better understand that this is probably the most overdue statement made by any credit agency in history.
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