Toro
Diamond Member
Seems Moody's is reviewing U.S. AAA rating if we default, even short term,...
In what effectively was a warning about issuing a warning, Moody’s said it would place the U.S. government’s rating under review for possible downgrade on the “very small but rising risk of a short-lived default.” The Treasury Department said it would exhaust all funds by Aug. 2 if the debt ceiling is not lifted by then, in which case a default on existing obligations becomes a possibility.
Moody
seems to me that they care more about a short-term default ithan they are about immediate cuts. (and yes, i know they want the deficit to come down, too... as it should).
but can someone who actually knows something about this subject explain to me how anyone is even considering not raising the debt ceiling?
It's nuts not to raise the debt ceiling, which is why we ultimately will.
However, we have to address the long term solvency of SS and Medicare, particularly the latter. My guess is that Moody's would look very favorably towards raising the debt ceiling while addressing long term solvency issues. Which means we are going to have to cut spending and raise taxes.