From Bloomberg:
Standard & Poor’s put a "negative" outlook on the AAA credit rating of the U.S., citing a "material risk" the nation's leaders will fail to deal with rising budget deficits and debt.The stock market is responding in a predictable manner.
"We believe there is a material risk that U.S. policy makers might not reach an agreement on how to address medium and long-term budgetary challenges by 2013," New York-based S&P said today in a report. "If an agreement is not reached and meaningful implementation does not begin by then, this would in our view render the U.S. fiscal profile meaningfully weaker than that of peer 'AAA' sovereigns."
Longer-term Treasuries fell, reversing earlier gains, after S&P lowered its outlook to negative from stable. The cost to protect against a default by the government and the nation's banks jumped and stocks declined after the New York-based ratings firm’s action, which assigns a one-in-three chance that it will lower the U.S. rating in the next two years.
Under President Barack Obama's fiscal year 2012 budget, released in February, the total debt subject to the ceiling would be $20.8 trillion in 2016. The plan House Republicans approved April 15, written by Budget Committee Chairman Paul Ryan, would need a debt ceiling of at least $19.5 trillion, according to data compiled by Bloomberg Government.
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1 comment:
Make no mistake about it: Federal Reserve Chairman Bernanke has been deflating the dollar to benefit his bankster buddies, while the rest of the U.S. and world pay extortion money to these shakedown artists. While I do not support Congressman Ron Paul, I agree with him when said: "There is something fishy about the head of the world’s most powerful government bureaucracy, one that is involved in a full-time counterfeiting operation to sustain monopolistic financial cartels, and the world’s most powerful central planner, who sets the price of money worldwide, proclaiming the glories of capitalism."
Bernanke, the current U.S. presidential administration, and most of congress are making it so that your grandchildren will be beggars, while their grandchildren will live in McMansions. What are you going to do about it? For starters, vote for anyone who loudly will stand up the bankster cartel. In short, throw the bums out with your vote.
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