Also...
Quote:
A small majority of economists -- 30 out of 53 -- surveyed over the past two days said the United States will lose its AAA credit rating from one of the three big ratings agencies -- Standard & Poor's, Moody's or Fitch.
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Also...
Quote:
A small majority of economists -- 30 out of 53 -- surveyed over the past two days said the United States will lose its AAA credit rating from one of the three big ratings agencies -- Standard & Poor's, Moody's or Fitch.
I think it's walled.Quote:
Originally Posted by Winehole23
I had the same problem.Quote:
Originally Posted by leemajors
Saw a blurb somewhere about Moody's bringing up US downgrade again so I'm guessing it's about that.
sorry so tardy with a working link. hopefully that one works.
We know the ratings agencies are essentially owned and operated by Wall St.
Wall St. wants to intimidate Dems into giving in to the Repugs (eg, NOT raise taxes above $250K, etc, etc) AND wants the business community scared into holding back the economy (not good for incumbent in election) in fear of the bogus "cliff".
And here's Boner scare-mongering the bogus "cliff" for the same reasons.
Boehner 'not confident' budget deal can be reached
As Moody's Investors Service threatened to downgrade the United States' top debt rating, House Speaker John A. Boehner said Tuesday he doubted Congress could reach a bipartisan budget deal to avoid that potentially dangerous outcome.
"I'm not confident at all," Boehner told reporters.
Boehner's office later clarified that the speaker had not yet learned of the Moody's outlook before commenting, and he released a statement saying the new report "underscores the point we have been making all year: the threat to American jobs comes not from action on our debt, but from inaction on our debt."
The sober assessment from the Republican leader brought swift rebuke from Democrats.
“With our nation inching closer to the 'fiscal cliff,' Speaker Boehner’s lack of determination to reach an agreement is due to his party’s intransigence and partisan obstructionism," said Rep. Nancy Pelosi of San Francisco, the minority leader.
http://mobile.chicagotribune.com/p.p...%3D0%26DPL%3D3
Repugs: All Politics, All The Time (no matter the collateral damage)
Moody's in a Mood
he rating agencies are at it again. Moody's Investors Services says it's likely to downgrade U.S. government bonds if Congress and the White House don't reach a budget deal before we go over the so-called "fiscal cliff" on January 2, when $1.2 trillion in spending cuts and tax increases automatically go into effect.
Apparently the credit rating agencies can't decide which is more dangerous to the U.S. economy - cutting the U.S. budget deficit too quickly, or not having a plan to cut it at all.
Last year's worry was the latter. In the midst of partisan wrangling over raising the nation's debt limit, Standard & Poor's downgraded U.S. debt - warning that Republicans and Democrats didn't have a credible plan to tame the deficit.
Now Moody's is worried about the opposite: The spending cuts and tax increases in the Budget Control Act that will automatically kick in at the start of 2013 - unless Congress decides on a better and presumably more gradual approach - are so draconian they'll push the economy into a recession.
The ratings agency schizophrenia is understandable. Everyone in Washington - and just about everywhere else - knows the budget deficit has to be dealt with. But anyone with half a brain (including Washington) also knows that when unemployment is high and economic growth still painfully slow, cutting the deficit too much now would make a bad situation even worse.
Remember, the real problem isn't the deficit per se. It's the deficit in proportion to the size of the economy. Cutting too much too soon will tip the economy into recession because it would reduce overall demand for goods and services when private demand falls way short of what's needed. And if the economy goes into recession and begins to shrink, the ratio of deficit to the economy gets worse. That's the austerity trap Europe has fallen into.
Even if the deficit continues to grow in proportion to the economy, we're safe as long as those who lend money to the U.S. aren't worried about being repaid and therefore don't demand high interest rates in return for their loans.
By this measure, the American economy appears safer than ever. Despite all the harrumphing from the credit-rating agencies, the United States has never been able to borrow money more cheaply than it can right now. That's because no matter how bad the deficit situation looks here, it's worse in places like Spain and Italy. And no matter how deadlocked Congress becomes, the U.S. is still the most stable and reliable system in which to put your savings.
The fiscal cliff is a real worry. And it's a worry precisely because the budget deficit isn't - at least not now. When unemployment is high and growth is anemic, we need as much fiscal stimulus as we can manage.
As long as the rest of the world is willing to lend us their savings so cheaply, we'd be wise to use it to rebuild our crumbling infrastructure and our schools and parks - and thereby put more Americans back to work - rather try to cut the deficit too much and too soon.
http://readersupportednews.org/opini...odys-in-a-mood
^Moody's is right..if we cut spending too fast and raise taxes it will throw the economy into a recession (and therefore lower output) by stifling the hell out of aggregate demand. Aggregate demand is simply a function of consumer spending (money after taxes to spend), government spending, and investment by the private sector into new buildings, machinery, etc. Raising taxes lowers the consumer portion of demand, and cutting spending lowers the government portion of the demand function.
Agg demand = CS + GS + I
And when you lower output, you're lowering incomes. Simplified, GDP = total income of every worker in an economy. So basically in short, recession = less incomes = less income taxes being paid in = less money to cover our recurring coupon payments on those government bonds.
What we need is to ever eliminate tax loopholes and cut spending..we're talking a little at a time. The solution isn't raising taxes on the average person because they pay enough..they don't have any more to give. But these 1 trillion + deficits per year are carrying us toward destruction at blazing speed..and Congress doesn't give a shit.
european countries are also implementing retrenchment policies as we speak imho. financial crisis periodically occurs in our economy and the world's economic structure is more or less reshaped every time, which's much needed, and the entrenchment policy has been proven the best strategy to cope with the economic difficulties imho. the economy is gonna recover so don't mind cutting spending & raising taxes in the short term
this is retarded and exactly what NOT to do. you have to do these things very gradually or you won't like the end result of going back to eating dog and maybe a little human having no electricity tbh. US can still grow plenty of food if your goal is to crash the system but you chinks might starve :lolQuote:
Originally Posted by Latarian Milton
"european countries are also implementing retrenchment policies as we speak imho"
your ihmo is flat wrong. UK, having cut badly, is proving what Krugman, Reich, etc have been saying all along. Pro-cyclical austerity is a disaster. counter-cyclical Keynesian govt spending is necessary to counter the instability of capitalism.
Gecko/Ryan want to implement austerity, guaranteed to make the economy worse, for longer, but of course only for the 99%, of which they are not part.