S&P Ups the Ante, Warns That It May Downgrade US Credit
July 14, 2011 - 10:18 am
Standard & Poor’s has warned U.S. lawmakers privately that it would downgrade the country’s debt if the Treasury Department is forced to prioritize payments because Congress does not raise the debt limit, a congressional aide said Thursday.
That warning came on the heels of an announcement from Moody’s on Wednesday that it too would slash the U.S. credit rating in the next few weeks if lawmakers fail to reach a deal. …
China, the U.S.’ largest creditor, also expressed grave concern that the U.S. would default on its debt, even briefly. “We hope that the U.S. government adopts responsible policies and measures to guarantee the interests of investors,” foreign ministry spokesman Hong Lei said at a regular news briefing in Beijing, when asked about the Moody’s report. He did not elaborate.
This is day 806 since we last had a budget. The Democrats were in control of DC from one end to the other for much of that time but couldn’t trouble themselves to do their most basic duty. Obama’s drama queen act notwithstanding, they own this crisis.
And as for the Democrats’ insistence on including tax hikes in any debt ceiling deal, the majority of the American people are not with him on that.