Missing From The Debt Ceiling Debate: A Plan That Will Work

[BigRob]

Moody's: Neither debt plan protects the nation's AAA rating

The "limited magnitude" of both debt plans put forward by congressional leaders would not put the nation's AAA credit rating back on solid footing, Moody's Investors Service announced Friday.

"Reductions of the magnitude now being proposed, if adopted, would likely lead Moody's to adopt a negative outlook on the AAA rating," the credit rating agency said in a new report. "The chances of a significant improvement in the long-term credit profile of the government coming from deficit reductions of the magnitude proposed in either plan are not high."

But wait! Haven't we been hearing all along we just need to increase the debt ceiling and all will be well? Guess not.

Further:

"It remains our expectation that the government will continue with timely debt service....If the debt limit is not raised before August 2, we believe that the Treasury would give priority to debt service payments and could thus postpone a potential debt default for a number of days...Revenues would be more than adequate for some period of time to meet those payments, although other outlays would be severely reduced as a result."

So will default...we won't default...we will get downgraded anyway? How can anyone keep track of this theatre of the absurd?

 

[Openmind]

Moody's: Neither debt plan protects the nation's AAA rating



But wait! Haven't we been hearing all along we just need to increase the debt ceiling and all will be well? Guess not.

Further:


So will default...we won't default...we will get downgraded anyway? How can anyone keep track of this theatre of the absurd?

Come on, Rob. . . you're smarter than that! But, maybe your inheritance and annuities have kept you too protected from financial hardship to REALLY understand the meaning and the far reaching consequences of a bad credit rating!

 

[BigRob]

Come on, Rob. . . you're smarter than that! But, maybe your inheritance and annuities have kept you too protected from financial hardship to REALLY understand the meaning and the far reaching consequences of a bad credit rating!

I get the consequences of a bad credit rating....However, if you read the story, Moody's is saying that neither plan is likely to save the AAA rating...how about you come up with a plan that will?

 

[ProudLefty]

Here's a plan that will. Everyone agrees that it will work. Unfortunately that makes no difference; the Koch brothers and Rush Limbaugh don't approve.

Here's the plan:

1. Stop the wars
2. Go back to the reasonable tax rates of Reagan & Clinton
3. Fix the gift to pharma
4. Get our infrastructure upgraded
5. Put Capital Gains Tax rates at the same rates as the regular income taxes and get the really rich paying at least as much as us grunts pay.

 

[PLC1]

Moody's: Neither debt plan protects the nation's AAA rating



But wait! Haven't we been hearing all along we just need to increase the debt ceiling and all will be well? Guess not.

Further:


So will default...we won't default...we will get downgraded anyway? How can anyone keep track of this theatre of the absurd?

It appears to me that the only "plan" either party has is to cast as much blame on the other side. Maybe they'll come up with something that works behind closed doors where the public can't see them sitting down with the evil ones and coming up with something realistic, but there is no evidence of that so far.

Congress is broken, dysfunctional, not doing its job. The president is unable to get them to do much of anything.

The federal government is broke, and it is broken.