It's ABOUT DEBT TO GDP!
Egan-Jones Downgrades US From AAA To AA+ | ZeroHedge
The debt ceiling is a red herring! It is the SPENDING that is the problem! HOLY FUCK come on people!!!!!!!!
Egan-Jones Downgrades US From AAA To AA+ | ZeroHedge
Real GDP increased at an annualized rate of 4.0% in Q1 2011, following an increase of 3.5% rise in the prior quarter. Personal consumption expenditures, exports, and nonresidential fixed investment contributed positively to growth during the quarter. Meanwhile, imports rose sharply. In the March 2011 quarter, trade in goods and services resulted in a deficit of $562B, many because of the high price of petroleum. However, the major factor driving credit quality is the relatively high level of debt and the difficulty in significantly cutting spending. We are taking a negative action not based on the delay in raising the debt ceiling but rather our concern about the high level of debt to GDP in excess of 100% compared to Canada's 35%. Nonetheless, since the US's debt is denominated in dollars, a hard default is unlikely.
The debt ceiling is a red herring! It is the SPENDING that is the problem! HOLY FUCK come on people!!!!!!!!
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