Mood's Seems To Understand The Credit Market (Amendment XIV Is Likely Sufficient)!

[mascale]

Moody's has finally suggested a more Back to Basics, Constitutional Approach, to the U. S. Credit Market program. The suggestion is to revert to pre-1917, and abollish the debt ceiling.

Moody's warns again on U.S. debt: eliminate debt ceiling - Jul. 18, 2011

Before 1917, Amendment XIV contained the provision, "The validity of the public Debt of the United States, authorized by law, including debts. . .(incurred when there was no debt ceiling). . .shall not be questioned."

There is no specific Constitutional requirement of the debt ceiling. In fact the United States was able to create a deficit without it--In fact starting from day one.

Majority Rule--for example in Corporate Stockholding--is no longer intended by The New GOP of the Old Fat White People, Cavoriting About Naked On Other People's Yacht's, Dumpting Substance and Other Treasure Into the Sea--to be legal again in the United States.

The Constitutional basis is not clear, but the obligations have already been incurred, and in majority rule, and even in the most recent federal budget.

Moody's seems to know all about them.

"Crow, James Crow: Shaken, Not Stirred!"
(Cavoriting About. . . On What Basis are they doing this(?)!)

 

[waltky]

Granny says we all gonna be broke an' it gonna be dem politicians' fault...

Debt ceiling: What happens if Congress doesn't raise it?
July 21, 2011: -- What happens if lawmakers fail to raise the debt ceiling by the Aug. 2 deadline?

Well, it's hard to say, because lawmakers have never before put the United States in a position where it can't pay all its bills. But it wouldn't be pretty. A failure to raise the debt ceiling would likely send shockwaves through the underpinnings of the financial system -- and possibly ripple out to individual investors and consumers.

The federal government would be forced to prioritize its payments. It would risk defaulting on its financial obligations. And if that happens, credit rating agencies would downgrade U.S. debt.

"Even if Washington did raise the debt ceiling after just a few harrowing days following a default ... we envisage that the economy could fall quickly back into recession," rating agency Standard & Poor's said in a report Thursday. Federal Reserve Chairman Ben Bernanke said the fallout could be "catastrophic" and "self defeating."

Markets and Money: