Moody’s Warns US May Lose AAA Rating
We may all be singing in green tights
This report comes out on the same day Christina Romer, Chairwoman of the President’s Council of Economic Advisers testifies before Congress that the Stimulus Package is a failure. We expect Congress to take her testimony as a call to pass Stimulus II, more of the same. (We report on her testimony here.)
It is appropriate that we use XINHUA as our dateline since the Chinese are our biggest creditors. Did our reckless administration and Congress think that they could spend our way into oblivion and the Chinese wouldn’t notice?
Steven Hess, Moody’s lead analyst for the United States, said in a TV interview that the AAA rating of the United States is “not guaranteed.” He said if the U.S. deficit does not drop to a sustainable level in the next three to four years, the U.S. rating will be “in jeopardy.” Xinhua News Agency
Just last year Moody’s warned the downgrade could occur in 8-10 years. It appears they are moving up the timetable due to Congress’ spending spree. And yet just the day before Moody’s announcement the Senate tries to pass another spending bill for 1/4 trillion dollars.
Tomorrow we are sure it will be business as usual, more talk of deficit spending, running up our bills with the Chinese. Pretty soon the Chinese will yank our credit card, which will lead to the collapse of our currency and way of life. That may just be what the Alinsky-Cloward-Piven crowd in this administration want.
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