S&P to U.S.: Any missed payments could trigger downgrade

Standard & Poor's has privately told U.S. lawmakers and top business groups that it might cut the U.S. credit rating if the government fails to make any of its expected payments -- including Social Security checks -- even if it makes all its debt payments, the Wall Street Journal reported citing people familiar with the matter.

S&P indicates any missed payments could trigger downgrade

First Moody's says it has placed the U.S. government's triple-A bond rating on review for possible downgrade due to rising risk of default, and now S&P are indicating any missed payments, including Social Security check payments, could trigger it to cut the U.S. credit rating. These credit rating agencies are coming out in force on the U.S. right now with the debate over the debt intensifying and drawing closer to the deadline.

Standard & Poor's has privately told U.S. lawmakers and top business groups that it might cut the U.S. credit rating if the government fails to make any of its expected payments -- including Social Security checks -- even if it makes all its debt payments

Well if they keep their word (which they probably won't) and the debt ceiling ain't raised, the US is sure to face a downgrade.

Why? Because even if there's enough money to pay social security and interest on the debt, there's not enough money to pay other stuff...

The US government will not default on foreigners and probably not on social security receivers... but they will default on military contractors/pensions/health care providers... etc.

No way they can pay everyone... unless they raise taxes by a hell lot.

Proof :

787.6 billion in pensions.
898 billion in health care.
140.9 billion in education.
928.5 billion in defense.
464.6 billion in welfare.
57.3 billion in protective services.
104.2 billion in transportation.
29 billion in general government expenses.
151.4 billion in other spending.

You need to cut 1.9 trillion from that or default on 1.9 trillion of that or raise taxes by 1.9 trillion (which is impossible)

Fact is, if the debt ceiling ain't raised, the US WILL default on someone... the only question is WHO.

S&P: We'll Drop U.S. Debt Rating From AAA to D in August

Standard & Poor's, the credit rating agency, will drop the United States' debt rating from a pristine triple-A to a pathetic D if Republicans and Democrats cannot agree on a deal by August 4. The Atlantic Wire has more:

S&P's managing director John Chambers explained, "If the U.S. government misses a payment, it goes to D. ... That would happen right after August 4, when the bills mature, because they don't have a grace period."

I'm willing to bet a thousand bucks S&P doesn't downgrade the US to D if it doesn't pay.


In summary, raise the debt ceiling, and REFORM THE WHOLE THING in the next year or you face economic destruction.

reply to post by Vitchilo


Wrong. Don't dare raise that debt ceiling. Deal with it.

Originally posted by Mr Objectivity
reply to post by Vitchilo

 

Wrong. Don't dare raise that debt ceiling. Deal with it.

Well you're right. End this ponzi scheme now. Let it collapse.

If there were any chance good people could actually go into Washington after the debt ceiling were to be raised, and do what is needed, then I would say raise the debt ceiling.

But as it is now and is likely to be... LET IT ALL COLLAPSE.

great take our money, completely spend us into debt for things we don't want or need, and now they want a higher credit limit, what exactly will that do???

they are completely incompetent, we are still waiting on LAST years budget, it just such a joke

all the while asking for more money while poring cash into other countries

I say we give the politicians and banks 1 choice either stop operating they way they are, and to banks bring interest down to almost nothing, or you can keep the debt and go #%*! yourself, THAT IS THE 1 AND ONLY OPTION

some might say that's not fair banks need to make money to
....I say they have been making too much money for too long they are lucky to be where they are, after the boot they have been holding on the neck of the human race for far to long