Tuesday, September 11, 2012

Moody's to Cut US Rating - Cue Faux Republican Outrage

In what is sure to become another notch in the 'Elections matter!' belt, Moody's warns the US that it can't get around the brick wall -
Budget negotiations during the 2013 Congressional legislative
session will likely determine the direction of the US government’s Aaa
rating and negative outlook, says Moody’s Investors Service in the
report “Update of the Outlook for the US Government Debt Rating.”

If those negotiations lead to specific policies that produce a
stabilization and then downward trend in the ratio of federal debt to
GDP over the medium term, the rating will likely be affirmed and the
outlook returned to stable, says Moody’s.

If those negotiations fail to produce such policies, however,
Moody’s would expect to lower the rating, probably to Aa1.
This should end well. If by well we mean in a collapsed economy with hysterical women screaming about their lack of divorce programming. This is very easy to understand - There is not a single candidate that proposes doing anything about the wall. The Republicans are blaming the Democrats but they both spend like drunken sailors going to war. Paul Ryan isn't going to save you, Obama isn't going to spend you into prosperity. They both realize that the game is over, they're trying to find their spots on the new ship.

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