Moody’s Text: To Downgrade US If No Deal To Cut Debt/GDP Ratio

September 11, 2012 -- Forexlive.com

Moody’s Text: To Downgrade US If No Deal To Cut Debt/GDP Ratio

Well here we go again.

Another downgrade if The White House and Congress can't get a normal budget together.

WASHINGTON (MNI) – The following is the text of a statement Tuesday
by rating agency Moody’s:

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.

Very very bad news for Obama and Co.

What will the counterfeiters do now?

I'm confused, I could swear this is at least the 3rd time I've seen the US downgraded, but the article is talking about downgrading to AA1, which means the US currently has an Aaa (the highest possible) rating?

reply to post by LordGoofus


There is more than one credit agency.

Credit rating agency Standard & Poor's (S&P) downgraded its credit rating of the U.S. federal government from AAA (outstanding) to AA+ (excellent) on August 5, 2011.

This was the first time the government was given a rating below AAA. S&P had announced a negative outlook on the AAA rating in April 2011. The downgrade to AA+ occurred four days after the 112th United States Congress voted to raise the debt ceiling of the federal government by means of the Budget Control Act of 2011 on August 2, 2011.

The downgrade was criticized by the U.S. Treasury Department, both Democratic and Republican Party political figures, and many businessmen and economists.

Both Fitch Ratings and Moody's, designated like S&P as nationally recognized statistical rating organizations (NRSRO) by the U.S. Securities and Exchange Commission, retained the U.S.'s triple-A rating. Moody's, however, changed its outlook to negative on June 2, 2011 and Fitch changed its outlook to negative on November 28, 2011.

wikipedia

And yet Romney's plan is to increase military spending.

Originally posted by RealSpoke
And yet Romney's plan is to increase military spending.

I remember someone 4 years ago saying they would not deserve reelection if they had not fixed the economy. How have the past 4 years worked out? What was the unemployment rate suppose to be after the stimulus? How many people have stopped looking for work to artificially lower the unemployment rate? I'm sorry your messiah is a terrible President. Time for someone who has actual experience to try.

reply to post by OccamsRazor04


So... You want to carve up the US, and sell different states to other countries, then outsource all of our government to China and India? That's what Romney has the most experience doing.

Obama's mixed record on trade By Chris Isidore
money.cnn.com...reply to post by Evil_Santa

Originally posted by Evil_Santa
reply to post by OccamsRazor04

 

So... You want to carve up the US, and sell different states to other countries, then outsource all of our government to China and India? That's what Romney has the most experience doing.

You clearly are incapable of debate. Source where Romney stated that as his plan. I am done talking to you until you can, or you apologize for making such statements.