Friday, July 15, 2011

US Debt Default Strategy

The US national debt is in the daily news. Elite government officials reportedly spend many hours, day after day, discussing options for cutting spending, raising taxes & revenues, or increasing the debt ceiling. The rating agencies Moody's and Standard & Poor's are prepared to downgrade US sovereign debt, which will make assorted borrowing more expensive.

The people of the USA may be better served by default. US rogue regimes led by Bush & Obama squandered our money on overseas military adventures, against majority opinion (repeat polls show strong majorities for removing US troops from Iraq & Afghanistan). Future generations shouldn't be saddled with costly errors made by elitist fools & their wealthy promoters wasting public funds.

This 'rogue government' argument has been used by other nations when a prior regime has looted their national treasury for indefensible activities (sometimes assisted by the USA). Now it's our turn to be lectured that we should've thrown the bums out.

Sovereign credit ratings, United States of America:

Moody's Investors Service
USA long-term = Aaa
on review for possible downgrade 13 July 2011 (link)

Standard & Poor's Ratings Services
USA long-term = AAA
USA short-term = A-1+
put on CreditWatch w/ negative implications 14 July 2011 (link)

Fitch Ratings
USA long-term = AAA
USA short-term = F1+
stable since 21 Sept 2000 (link)

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