Greenbeard
Gold Member
Did you not watch the video in the OP.
Given that the first quote is from that video ("The political settings we don't think are as strong as some of the strongest sovereigns that we rate. The most recent evidence for that is the debate we had over raising the debt ceiling and the U.S. government coming within a day of having cash management problems."), what do you think?
The problem is not that a large enough deficit reduction package hasn't been passed. It's that our political circumstance (namely, the intransigence of a certain faction of political actors that now dictates the actions of an entire political party) makes it impossible to pass a larger package. And that's primarily because one side of the negotiation will not grant any concessions to the other, making compromise impossible. The numbers are significant only insofar as they reveal something about our political system's woes (i.e. the "grand bargain" that was on the table had to be scrapped because more deficit reduction became unpalatable to a certain group once the package included concessions to Democrats).
Last edited: