Moody's says US won't lose AAA Rating | TigerDroppings.com

Posted byMessage
Hoyas
Georgetown Fan
Member since Sep 2013
2478 posts

Moody's says US won't lose AAA Rating



LINK

quote:

One of the nation’s top credit-rating agencies says that the U.S. Treasury Department is likely to continue paying interest on the government’s debt even if Congress fails to lift the limit on borrowing next week, preserving the nation’s sterling AAA credit rating.

In a memo being circulated on Capitol Hill Wednesday, Moody’s Investors Service offers “answers to frequently asked questions” about the government shutdown, now in its second week, and the federal debt limit. President Obama has said that, unless Congress acts to raise the $16.7 trillion limit by next Thursday, the nation will be at risk of default.

Not so, Moody’s says in the memo dated Oct. 7.

We believe the government would continue to pay interest and principal on its debt even in the event that the debt limit is not raised, leaving its creditworthiness intact,” the memo says. “The debt limit restricts government expenditures to the amount of its incoming revenues; it does not prohibit the government from servicing its debt. There is no direct connection between the debt limit (actually the exhaustion of the Treasury’s extraordinary measures to raise funds) and a default.

The memo offers a starkly different view of the consequences of congressional inaction on the debt limit than is held by the White House, many policymakers and other financial analysts. During a press conference at the White House Tuesday, Obama said missing the Oct. 17 deadline would invite “economic chaos.”

The Moody’s memo goes on to argue that the situation is actually much less serious than in 2011, when the nation last faced a pitched battle over the debt limit.

“The budget deficit was considerably larger in 2011 than it is currently, so the magnitude of the necessary spending cuts needed after 17 October is lower now than it was then,” the memo says.

Treasury Department officials did not immediately respond to requests for comment.


Wow!

This is what I have been nervous about. The loss of our AAA rating is basically off the table and I suspect Moody's actually is in favor of us restructuring our long term debt obligations. Now, I can see what House Republicans are saying, it's making sense with this Moody memo.

Okay, I'm on board with Boehner and off the administrations side on this. Boehner NEEDS to sell this to the American people as a balanced budget maneuver.



This post was edited on 10/9 at 12:11 pm



Back to top
Share:
Teddy Ruxpin
LSU Fan
New Orleans, LA
Member since Oct 2006
19319 posts

re: Moody's says US won't lose AAA Rating


quote:

sale


sell






Back to top
IceTiger
USA Fan
OKC
Member since Oct 2007
9200 posts

re: Moody's says US won't lose AAA Rating


The bad guy from the movie Mannequin is on TV saying the exact opposite right now





Back to top
  Replies (0)
MFn GIMP
LSU Fan
Owensboro, Kentucky
Member since Feb 2011
8614 posts

re: Moody's says US won't lose AAA Rating


quote:

” We believe the government would continue to pay interest and principal on its debt even in the event that the debt limit is not raised, leaving its creditworthiness intact,” the memo says. “The debt limit restricts government expenditures to the amount of its incoming revenues; it does not prohibit the government from servicing its debt. There is no direct connection between the debt limit (actually the exhaustion of the Treasury’s extraordinary measures to raise funds) and a default.



You mean they actually looked at the law, which requires debt management services to be paid before anything else in case the debt limit is reached, instead of relying on scare tactics and BS. wow.



This post was edited on 10/9 at 12:11 pm


Back to top
  Replies (0)
Hoyas
Georgetown Fan
Member since Sep 2013
2478 posts

re: Moody's says US won't lose AAA Rating


I was correcting it as at the same time you posted thanks





Back to top
  Replies (0)
oklahogjr
Arizona State Fan
Gold Membership
Member since Jan 2010
22154 posts

re: Moody's says US won't lose AAA Rating


The question is if Obama will pay the debt or allow us default.





Back to top
dewster
Maryland Fan
Member since Aug 2006
9093 posts

re: Moody's says US won't lose AAA Rating


quote:

The question is if Obama will pay the debt or allow us default.

This....though I don't think he has much choice in the matter.

Debt service can easily be handled by the revenue generated.



This post was edited on 10/9 at 12:14 pm


Back to top
  Replies (0)
Hoyas
Georgetown Fan
Member since Sep 2013
2478 posts

re: Moody's says US won't lose AAA Rating


quote:

The question is if Obama will pay the debt or allow us default.


Nah, Obama has stated the treasury has made contingency plans to pay bills accordingly.






Back to top
  Replies (0)
Paluka
LSU Fan
One State Over
Member since Dec 2010
4506 posts

re: Moody's says US won't lose AAA Rating


quote:

The question is if Obama will pay the debt or allow us default.


Is this one of those times where Obama will refuse to obey the law?






Back to top
Lsut81
USA Fan
Member since Jun 2005
64930 posts

re: Moody's says US won't lose AAA Rating


quote:

I suspect Moody's actually is in favor of us restructuring our long term debt obligations



Wow, so someone can actually look forward instead of in the now.

Its time to suffer in the short term in order to have a sustainable future.







Back to top
StinkBait72
USA Fan
Member since Nov 2011
1015 posts

re: Moody's says US won't lose AAA Rating


quote:

Its time to suffer in the short term in order to have a sustainable future.


It is long overdue. We had a good opportunity just a few short years ago.






Back to top
Lsut81
USA Fan
Member since Jun 2005
64930 posts

re: Moody's says US won't lose AAA Rating


quote:

We had a good opportunity just a few short years ago.


Yup and Boner dropped the fricking ball.






Back to top
fontell
Auburn Fan
Montgomery
Member since Sep 2006
2544 posts

re: Moody's says US won't lose AAA Rating


This rhetoric from the Pres is standard and poors eat it up like its gospel. See it?





Back to top
  Replies (0)
deltaland
Mississippi St. Fan
Member since Mar 2011
24046 posts

re: Moody's says US won't lose AAA Rating


quote:

The question is if Obama will pay the debt or allow us default.


He has no choice. If he blocked the payment via executive order that would be an impeachable offense.






Back to top
StinkBait72
USA Fan
Member since Nov 2011
1015 posts

re: Moody's says US won't lose AAA Rating


quote:

Yup and Boner dropped the fricking ball.


I got a feeling he is about to drop it again, but at least this time he held onto it long enough for a few more people to realize the trouble we are in. The end result will be the same, just kicking the can.






Back to top
  Replies (0)
Hoyas
Georgetown Fan
Member since Sep 2013
2478 posts

re: Moody's says US won't lose AAA Rating


quote:

Wow, so someone can actually look forward instead of in the now.

Its time to suffer in the short term in order to have a sustainable future.


I actually believe its opposite, as the sequester cuts are given to the Dems in order to secure the medium & long term cuts in entitlements.

ETA: I think this report puts some wind in the sails of the Tea Party & GOP



This post was edited on 10/9 at 12:34 pm


Back to top
  Replies (0)
oklahogjr
Arizona State Fan
Gold Membership
Member since Jan 2010
22154 posts

re: Moody's says US won't lose AAA Rating


quote:

He has no choice. If he blocked the payment via executive order that would be an impeachable offense.


sounds like he does have a choice. The threat of impeachment and so on isn't going to scare him.






Back to top
  Replies (0)
TrueTiger
LSU Fan
Chicken's most valuable
Member since Sep 2004
10611 posts

re: Moody's says US won't lose AAA Rating


they don't want to get sued by the Justice Department like
S&P did.


S&P: Gov. sued us for downgrade



This post was edited on 10/9 at 1:12 pm


Back to top
oklahogjr
Arizona State Fan
Gold Membership
Member since Jan 2010
22154 posts

re: Moody's says US won't lose AAA Rating


quote:

they don't want to get sued by the Justice Department like
S&P did.


finally all that corruption pays off for the american people.






Back to top
TrueTiger
LSU Fan
Chicken's most valuable
Member since Sep 2004
10611 posts

re: Moody's says US won't lose AAA Rating


quote:

finally all that corruption pays off for the american people.






Back to top
  Replies (0)


Back to top