Tag Archive | federal debt

US Now Borrowing More Than We Make

Brought to you by the big spenders in both parties, but especially the Democratic Party (which presided over the so-called stimulus and ObamaCare), including the Spender-in-Chief in the White House, the US is officially underwater:

US debt shot up $238 billion to reach 100 percent of gross domestic project after the government’s debt ceiling was lifted, Treasury figures showed Wednesday.

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Moody’s Gives US Till July To Address Deficit Reduction

Well, the Ruling Class was warned back in January, now they’re getting what may be their last warning:

In a statement, Moody’s said it would put the Aaa U.S. rating on review for a possible downgrade if lawmakers in Washington do not make substantive progress in budget talks by the middle of July.

“Since the risk of continuing stalemate has grown, if progress in negotiations is not evident by the middle of July, such a rating action is likely,” Moody’s said.

Obviously, Moody’s is not impressed by MediScare tactics, nor by the AWOL President and Democratic-led Senate, neither of which has offered a single reasonable proposal for closing the budget gap.

In short, Obamanomics isn’t working, unless Obama’s true goal is to absolutely bankrupt the nation.

S&P, Moody’s Warn Of Possible Reduction In US Credit Rating

Looks like the bill for the last few years of runaway federal spending may be coming due soon:

“The warning on the U.S. rating is well-founded,” said Brian Yelvington, chief fixed-income strategist at Knight Capital. “However, it will probably fall on deaf ears until the peripheral Europe story plays out.”

Moody’s Investors Service said in a report on Thursday that the U.S. will need to reverse the expansion of its debt if it hopes to keep its “Aaa” rating.

“We have become increasingly clear about the fact that if there are not offsetting measures to reverse the deterioration in negative fundamentals in the U.S., the likelihood of a negative outlook over the next two years will increase,” Sarah Carlson, senior analyst at Moody’s, said.

Separately, Carol Sirou, head of Standard & Poor’s France, told a Paris conference on Thursday that the firm couldn’t rule out lowering the outlook for the U.S. rating in the future.

“The view of markets is that the U.S. will continue to benefit from the exorbitant privilege linked to the U.S. dollar” to fund its deficits, Ms. Sirou said. “But that may change.”

However, Ms. Sirou, who has an administrative role and has no say in sovereign ratings, was mainly reiterating statements the agency has made in the past. She specifically referred to a comment more than two years ago by John Chambers, chairman of S&P’s sovereign-rating committee, suggesting that AAA ratings can always be changed.

This is what happens, Congresscritters of both parties, when you spend, spend, spend like the government has an orchard of money trees in the basement of the Capitol.


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