Fitch may downgrade U.S. credit rating

[emptystep]

LONDON (AP) — The United States could lose its top credit rating from a second rating agency if there's a delay in raising the country's debt ceiling, Fitch Ratings warned Tuesday.

Congress has to increase the country's debt limit by March 1 or face a potential default. There are fears the debate will descend into the sort of squabbling and political brinkmanship that marked the last effort to raise the ceiling in the summer of 2011. The U.S. Treasury Department warned then that it had nearly reached a point where it would be unable "to meet our commitments securely."

Standard & Poor's was so concerned by the dysfunctional nature of the 2011 debate that it stripped the U.S. of its triple A credit rating for the first time in the country's history.

Article goes on to elaborate on the mess this congress has gotten our finances in.

 

[Mad Scientist]

"May" meaning "Will".

 

[Too Tall]

LONDON (AP) — The United States could lose its top credit rating from a second rating agency if there's a delay in raising the country's debt ceiling, Fitch Ratings warned Tuesday.

Congress has to increase the country's debt limit by March 1 or face a potential default. There are fears the debate will descend into the sort of squabbling and political brinkmanship that marked the last effort to raise the ceiling in the summer of 2011. The U.S. Treasury Department warned then that it had nearly reached a point where it would be unable "to meet our commitments securely."

Standard & Poor's was so concerned by the dysfunctional nature of the 2011 debate that it stripped the U.S. of its triple A credit rating for the first time in the country's history.

Article goes on to elaborate on the mess this congress has gotten our finances in.

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.

 

[jwoodie]

Exactly. In four years, interest payments will likely consume 20% of the federal budget.

 

[Decus]

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

 

[EdwardBaiamonte]

LONDON (AP) — The United States could lose its top credit rating from a second rating agency if there's a delay in raising the country's debt ceiling, Fitch Ratings warned Tuesday.

Congress has to increase the country's debt limit by March 1 or face a potential default. There are fears the debate will descend into the sort of squabbling and political brinkmanship that marked the last effort to raise the ceiling in the summer of 2011. The U.S. Treasury Department warned then that it had nearly reached a point where it would be unable "to meet our commitments securely."

Standard & Poor's was so concerned by the dysfunctional nature of the 2011 debate that it stripped the U.S. of its triple A credit rating for the first time in the country's history.

Article goes on to elaborate on the mess this congress has gotten our finances in.

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????

 

[Decus]

LONDON (AP) — The United States could lose its top credit rating from a second rating agency if there's a delay in raising the country's debt ceiling, Fitch Ratings warned Tuesday.

Congress has to increase the country's debt limit by March 1 or face a potential default. There are fears the debate will descend into the sort of squabbling and political brinkmanship that marked the last effort to raise the ceiling in the summer of 2011. The U.S. Treasury Department warned then that it had nearly reached a point where it would be unable "to meet our commitments securely."

Standard & Poor's was so concerned by the dysfunctional nature of the 2011 debate that it stripped the U.S. of its triple A credit rating for the first time in the country's history.

Article goes on to elaborate on the mess this congress has gotten our finances in.

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.

 

[EdwardBaiamonte]

LONDON (AP) — The United States could lose its top credit rating from a second rating agency if there's a delay in raising the country's debt ceiling, Fitch Ratings warned Tuesday.

Congress has to increase the country's debt limit by March 1 or face a potential default. There are fears the debate will descend into the sort of squabbling and political brinkmanship that marked the last effort to raise the ceiling in the summer of 2011. The U.S. Treasury Department warned then that it had nearly reached a point where it would be unable "to meet our commitments securely."

Standard & Poor's was so concerned by the dysfunctional nature of the 2011 debate that it stripped the U.S. of its triple A credit rating for the first time in the country's history.

Article goes on to elaborate on the mess this congress has gotten our finances in.

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.

 

[emptystep]

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.

 

[EdwardBaiamonte]

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.

 

[emptystep]

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.

Either we would have not fought the Iraq/Afghanistan war or we would have debt. There is just no way it could be both fight the Iraq/Afghanistan war and have no debt.

 

[Wiseacre]

I'm surprised Fitch waited this long.

 

[emptystep]

I'm surprised Fitch waited this long.

It hasn't happened yet but it is definitely a 'shot across the bow'. We don't raise the debt ceiling they will sink our battleship.

 

[Wiseacre]

I'm surprised Fitch waited this long.

It hasn't happened yet but it is definitely a 'shot across the bow'. We don't raise the debt ceiling they will sink our battleship.

I think we'll get downgraded either way. If Fitch isn't happy with whatever deal is worked out, if one is worked out, they'll do the downgrade anyway. Which I think is highly likely.

 

[emptystep]

I'm surprised Fitch waited this long.

It hasn't happened yet but it is definitely a 'shot across the bow'. We don't raise the debt ceiling they will sink our battleship.

I think we'll get downgraded either way. If Fitch isn't happy with whatever deal is worked out, if one is worked out, they'll do the downgrade anyway. Which I think is highly likely.

What are they waiting for than? Trying to make it look like they gave us a fighting chance?

 

[Wiseacre]

It hasn't happened yet but it is definitely a 'shot across the bow'. We don't raise the debt ceiling they will sink our battleship.

I think we'll get downgraded either way. If Fitch isn't happy with whatever deal is worked out, if one is worked out, they'll do the downgrade anyway. Which I think is highly likely.

What are they waiting for than? Trying to make it look like they gave us a fighting chance?

Good question, don't know the answer. Maybe they keep hoping the pols in DC will finally come up with an acceptable plan to deal with the fiscal problems we have, particularly entitlement reform. I just don't think that'll happen, and we will get downgraded.

 

[akelch]

LONDON (AP) — The United States could lose its top credit rating from a second rating agency if there's a delay in raising the country's debt ceiling, Fitch Ratings warned Tuesday.

Congress has to increase the country's debt limit by March 1 or face a potential default. There are fears the debate will descend into the sort of squabbling and political brinkmanship that marked the last effort to raise the ceiling in the summer of 2011. The U.S. Treasury Department warned then that it had nearly reached a point where it would be unable "to meet our commitments securely."

Standard & Poor's was so concerned by the dysfunctional nature of the 2011 debate that it stripped the U.S. of its triple A credit rating for the first time in the country's history.

Article goes on to elaborate on the mess this congress has gotten our finances in.

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.

Is not the interest rate for the debt at a all time low? Just wait until that goes up.

 

[EdwardBaiamonte]

Article goes on to elaborate on the mess this congress has gotten our finances in.

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.

Is not the interest rate for the debt at a all time low? Just wait until that goes up.

if our credit is downgraded it will be because we are 16 trillion in debt and going deeper with 50 trillion in unfunded liabilities!! Does that mean we are due for a credit upgrade in some alternate liberal world I don't know about???

These irresponsible Democrats should be made illegal as the Constitution intended.