Join the Meeting Place for Moms!
Talk to other moms, share advice, and have fun!

(minimum 6 characters)

News & Politics News & Politics

CREDIT RATERS: U.S. NEEDS $1.6 TRILLION MORE CUTS BEYOND SEQUESTER

Posted by on Mar. 6, 2013 at 10:27 PM
  • 53 Replies




The $85 billion in across-the-board sequestration cuts is not enough in deficit reduction to forestall another downgrade of the nation’s “AAA” credit rating, say top credit ratings agencies.


The key to protecting America’s credit rating, say analysts, is lowering the nation’s debt-to-GDP ratio. The federal debt is projected to go from 72% of GDP in 2012 to 87% in 2022. Economists say economic growth accelerates for nations that keep their debt-to-GDP ratio at or below 60%. Projections from the Peter G. Peterson Institute put America’s debt-to-GDP ratio at 200% in 27 years.


The sequestration cuts help, says Fitch Rating’s Global Managing Director for Sovereign Ratings David Riley, but the manner in which they occurred did little to assure that America’s political system is on a stable and sustainable path to deficit reduction.


“It’s not the most ideal outcome,” said Riley. “You’d rather have intelligent cuts... but we don’t live in an ideal world, and it’s better to have some deficit reduction than none at all.”


Fitch Ratings says even after the sequester, America still needs another $1.6 trillion in deficit reduction to be on a sustainable path and another $3 trillion to put the nation’s debt-to-GDP ratio on a downward trajectory.


Fitch’s comments echo those Standard & Poor made when it lowered the nation’s credit rating. 


"The political discord around this process was a factor in lowering the credit rating," said S&P spokesperson John Piecuch. "We believe that the events since then have validated our opinion."


While Fitch and Moody’s Investors Service still give the U.S. their top credit rating, both have placed the U.S. on a negative outlook.

by on Mar. 6, 2013 at 10:27 PM
Add your quick reply below:
You must be a member to reply to this post.
Replies (1-10):
SallyMJ
by Ruby Member on Mar. 6, 2013 at 10:30 PM

i.e., Additional tax increases NOT a good plan at this time. According to the same kinds of credit rating organizations  who had to downgrade our debt limit in 2011.

29again
by Gold Member on Mar. 6, 2013 at 10:32 PM
2 moms liked this

But, it is practically Armegeddon now!  What will America look like with another $1.6T in cuts???  I mean, we already can only afford WH tours for those who donate half a million, there just isn't much more that can be done!!!  What do these monsters want, blood?? 

surprised


(I wrote this in my new sarcasm font!)

SallyMJ
by Ruby Member on Mar. 6, 2013 at 10:48 PM

Like that font!

I think you should call it "sarc font".  :)


Quoting 29again:

But, it is practically Armegeddon now!  What will America look like with another $1.6T in cuts???  I mean, we already can only afford WH tours for those who donate half a million, there just isn't much more that can be done!!!  What do these monsters want, blood?? 

surprised


(I wrote this in my new sarcasm font!)



SallyMJ
by Ruby Member on Mar. 6, 2013 at 10:48 PM

BUMP!

SallyMJ
by Ruby Member on Mar. 6, 2013 at 10:49 PM

BUMP!

sweet-a-kins
by Ruby Member on Mar. 6, 2013 at 10:50 PM
1 mom liked this
"The political discord around this process was a factor in lowering the credit rating," said S&P spokesperson John Piecuch. "We believe that the events since then have validated our opinion."



Republicans caused this.
Posted on CafeMom Mobile
29again
by Gold Member on Mar. 6, 2013 at 10:54 PM


Quoting sweet-a-kins:

"The political discord around this process was a factor in lowering the credit rating," said S&P spokesperson John Piecuch. "We believe that the events since then have validated our opinion."



Republicans caused this.

and the fact that Obama changed his mind right at the end had nothing to do with it, beyond proving that his word is sh!t, right?

sweet-a-kins
by Ruby Member on Mar. 6, 2013 at 10:59 PM
1 mom liked this
The political fighting and the republicans declaring they would fight everything and anything the president backed or agreed with led to this decision

The republican terrorists really didnt care because they thought tanking the American economy would win them the White House

They were wrong


Quoting 29again:


Quoting sweet-a-kins:

"The political discord around this process was a factor in lowering the credit rating," said S&P spokesperson John Piecuch. "We believe that the events since then have validated our opinion."







Republicans caused this.

and the fact that Obama changed his mind right at the end had nothing to do with it, beyond proving that his word is sh!t, right?

Posted on CafeMom Mobile
29again
by Gold Member on Mar. 6, 2013 at 11:09 PM

Stick to your story......that is all you got going for you... 

The majority of the people believe that we need MORE cuts than what the seqester is providing.  And no one is buying O's armegeddon threats.  He seems to forget that all those Republicans in the House were re-elected at the same time he was, and that the same people who voted him in voted for their R rep.  So, they don't necessarily agree with HIS misguided vision for the country, and they probably do agree with what their rep campaigned on (spending cuts!).   O has gone out of his way to ruin this country, and I am thankful that there are some who will stand up to him and tell him NO.

Quoting sweet-a-kins:

The political fighting and the republicans declaring they would fight everything and anything the president backed or agreed with led to this decision

The republican terrorists really didnt care because they thought tanking the American economy would win them the White House

They were wrong


Quoting 29again:


Quoting sweet-a-kins:

"The political discord around this process was a factor in lowering the credit rating," said S&P spokesperson John Piecuch. "We believe that the events since then have validated our opinion."







Republicans caused this.

and the fact that Obama changed his mind right at the end had nothing to do with it, beyond proving that his word is sh!t, right?


SallyMJ
by Ruby Member on Mar. 6, 2013 at 11:29 PM
1 mom liked this

Right - Republicans protested in a vacuum.

Let's look at the whole picture - you are an adult woman and can do that.

Republicans reacted to what Democrats did.

So, at minimum it is an equal opportunity disagreement.

Yes - I know that may not be what you want to hear - but we prefer to deal with the truth, and in reality here.


Quoting sweet-a-kins:

"The political discord around this process was a factor in lowering the credit rating," said S&P spokesperson John Piecuch. "We believe that the events since then have validated our opinion."



Republicans caused this.



Add your quick reply below:
You must be a member to reply to this post.
Join the Meeting Place for Moms!
Talk to other moms, share advice, and have fun!

(minimum 6 characters)