The United States government needs to take steps to preserve its top AAA-rating, a Standard & Poor's Ratings (S&P) official told Dow Jones newswire in an interview published on Thursday.
The measures taken in response to recommendations President Barack Obama's commission on fiscal responsibility would be crucial in the view S&P takes on the U.S. credit rating, he said.
"It is very important for the credit standing of the United States that the Congress considers very carefully what the fiscal commission proposes," John Chambers, chairman of S&P's sovereign rating committee, was quoted as saying.
"It is very important for Congress to take the required steps."
S&P maintains the United States' top AAA rating with a stable outlook, meaning there is not a significant chance of a change in the near future.
However, it has repeatedly warned about the gigantic deficit and the debt burden in the world's biggest economy, calling it a challenge for the government.
That's about a subtle as a 20-pound sledgehammer to the crotch, but there you are. Let the Catfood Commission makes those massive cuts to Social Security and Medicare or else, well it would be a shame if anything happened to your country's sovereign debt rating, eh?
A real shame. Still think Obama and the Dems are going to resist the Catfood Commission? Not me.
It's possible however. At least one Dem is publicly calling for Alan Simpson's head.
It's possible however. At least one Dem is publicly calling for Alan Simpson's head.
In the end however, Catfood Uber Alles.
In the short term, the Fed-US Banks-Treasuries circle jerk will hold water, each of them supporting the other, all at the expense of the value of the US currency. But in time, this cozy little arrangement will have to give way as the value of the US dollar begins to crater. Look for physical commodites to continue to appreciate vs the USD, despite the raging deflation all about us. One day this will end very badly, as all numbers games do.. and with it, our way of life. Keep an eye out on Japan; they are a few steps ahead of us in this Keynesian Death March. So goes Japan, so we go. It'll happen with startling speed
ReplyDeletehttp://themeanoldinvestor.blogspot.com/2010/08/us-bonds-circle-jerk.html
Also, Senator Bernie Sanders and Congressman Peter DeFazio also called for Alan Simpson to be removed.
ReplyDeleteNot one penny has been added to the deficit by Social Security. Not a single penny.