Moody's Likely to cut US Credit Rating

Source

Budget negotiations during the 2013 Congressional legislative
session will likely determine the direction of the US government’s Aaa
rating and negative outlook, says Moody’s Investors Service in the
report “Update of the Outlook for the US Government Debt Rating.”

If those negotiations lead to specific policies that produce a
stabilization and then downward trend in the ratio of federal debt to
GDP over the medium term, the rating will likely be affirmed and the
outlook returned to stable, says Moody’s.

If those negotiations fail to produce such policies, however,
Moody’s would expect to lower the rating, probably to Aa1

Interesting timing, this. Obviously the downgrade has been the elephant in the room since S&P downgraded their rating last August, but why is Moody's voicing this now?

There's ammunition here for either party to use going into November's elections. The GOP can realistically make the argument that the simplest way to break the gridlock would be to remove the individual roadblock, Obama, and replace him with someone who would work with the GOP majority in Congress. The Democrats, likewise, could press the solution being removal of enough "obstructions" from the GOP to give Obama a Congress that would work within his expectations. I think the Democrats will have a tougher road on that, mostly because districts tend to view their representatives more positively than the overall nation does.

I really don't think this downgrade can be avoided and just wish they'd get it over with already.

reply to post by burdman30ott6


Considering that Moody's was behind giving AAA status to the subprime morgage bubble, it makes me wonder who they actually work for and who is behind funding them? I don't have an answer, but perhaps someone else on ATS does???

I think it is just a matter of things going as planned by the globalists to turn the U.S. into a third world country!

Who is Moody, but only a mortal profit based agency?

What is more important? The lives of citizen or a 'downgrade' from a rating agency? It's a no brainer.

Let them do their thing while american leaders do theirs, for what is necessary.

Furthermore, with a downgrade, where do you think investors and hoarders will park their monies? China - with no rule of law? Russia - land of corruption? India - no need to say more. Islamic bonds - limited and where duplicity abounds to get fast cash?

Getting loans from the bond market to CIRCULATE $$$ to stimulate the economy may see a rise in interest rate, but with a money printing machine, what is 'higher interest rate' when the very same people are hoarding their monies in US and paying in return for such safety?

By all means, go ahead. It will bring down the dollar, cut excessive consumption by the masses while making the dollar drop to become more attractive to foreigners looking for innovative, trusted and quality american products to import.

It should be eagerly awaited today, and probably the best news for the economy in months.

Originally posted by burdman30ott6
The Democrats, likewise, could press the solution being removal of enough "obstructions" from the GOP to give Obama a Congress that would work within his expectations.

President Obama doesn't believe in downgrades.

No matter what some agency may say, we've always been and always will be a triple-A country.

Now when is QE4?

After reading Neil Barofsky's "Bailout", I don't see how anyone can conclude anything from what Moody's or any other rating agency does. They are all corrupt, and live in the den of thieves. Of course, if ratings were honest, how COULD the US still be rated AAA, given the situation with the economy, the banks, and our debt?

reply to post by ProfEmeritus


Paired with QE3 I'm not convinced these rating downgrades aren't a large part of the overall plan to devalue the US dollar... wait for it... from within the US. It has often been said that the only manner to bring about a global currency (or even a regional 'Amero' currency) is through complete devaluation of the dollar. Furthermore, the globalist's wet dream is the scenario currently playing out in the Eurozone, where the woes of one nation lead to bankruptcy WITH elite debt not being wiped out, but backstopped by the rest of the tax payers in other EU nations. It's like having a daisy chain of realtime blood transfusion patients with a vampire in the room. The vampire only needs to start sucking the neck of the last guy in the chain and will obtain his steady flow of blood from all the others who are hooked up with IVs to feed the bitten victim. Eventually the entire chain runs out of blood and lay dead, but the vampire has only had to exert the energy required to bite one individual.

Paired with QE3 I'm not convinced these rating downgrades aren't a large part of the overall plan to devalue the US dollar.

reply to post by burdman30ott6

That is certainly a possibility. Personally, I lean towards a combination of corruption, and complete incompetence of the current administration, and the Fed, the most corrupt non-government institution in the world. Ron Paul is right- we need to eliminate the Fed. QE3 is just an admission that the government can't even meet its current obligations, and it just wants cheap money for that purpose.

Devaluing the dollar is the only way to bring currency back into the US.

With a high dollar no one can afford to buy our trinkets. We lose jobs. No money comes in.
With a high dollar their trinkets become real cheap. They gain jobs. Money goes out.

Germany just agreed to trade with China in their currencies...instead of the US Dollar...our privileges over Germany/WWII are over.

Japan just agreed to trade with China in their currencies and not the US dollar.....our privileges over Japan/WWII are over.

China just announced they will sell oil to anyone in the Chinese Yuan......no more US dollars required for countries to buy oil.

www.marketoracle.co.uk...

www.examiner.com...

world.hawaiinewsdaily.com...

That's why Moody's will downgrade the USA. Watch the Jewish folk flee the USA.....