Discussion in 'Economy' started by emptystep, Jan 15, 2013.
Article goes on to elaborate on the mess this congress has gotten our finances in.
"May" meaning "Will".
Our credit rating may be downgraded again, but not because of any delay in raising the debt limit. The feds collected about $2.4 trillion in taxes last year and, with the tax raise on upper income earners, will collect even more. The only way we could default is to not pay the $360 billion interest on the national debt.
If our credit rating is downgraded again, it will be because the yearly deficits of over a trillion dollars for the past 4 years have not been dealt with, and are projected to continue indefinitely.
Obama apparently doesn't understand this fact or is a lying sack of dog squeeze.
Exactly. In four years, interest payments will likely consume 20% of the federal budget.
Debt is a bigger issue than the debt ceiling. This was just published:
"A major credit-rating company warned it could downgrade the U.S. if lawmakers prioritize debt payments over other government obligations such as Social Security, or fail to tackle the nation's growing debt burden in the ongoing budget negotiations."
"Fitch said Tuesday that it may downgrade the nation's debt even if lawmakers raise the debt ceiling, if Washington emerges from those negotiations without taking steps to lighten the U.S. debt load."
Fitch Lists Reasons for Possible U.S. Downgrade
of course the Congress doesn't do anything the president won't sign!!
Is it coincidence that this is happening when for the first time we have a president who had two communist parents and voted to the left of Bernie Sanders????
The debt ceiling will not be the reason for credit downgrade. Even if we raise the ceiling we will be downgraded if steps have not been taken to address our debt. See post 5.
We are addressing it. The Fed is buying 70% of it so there is no problem unloading it when Barry's Democrats create it!!
If the MSM reported this Barry would be toast.
Thanks for a link, Decus. That is probably the first time I accidentally left off a link.
Not raising the debt limit will definitely get a lower credit rating but it is probably not sufficient to prevent it. I don't think it shows a responsible handling of the U.S. budget to let sequester take affect or run the rest of the year using a continuing resolution. What would be a responsible action would be putting together a budget that outlines how we are going to spend our money in a way which runs the government and brings down the debt in a reasonable fashion.
Demcrats have killed 30 Republican Balanced Budget Amendments since Jefferson's first. Newts passed the house and fell one short in the Senate. IF it had passed the debt would be 0 today rather than 16trillion.
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