U.S. Credit Rating In Serious Jeopardy
Tuesday, December 8, 2009 at 11:55AM 
(FLP Opinion) - Something that just a few years ago would have seemed unreal is now a grim possibility. Moody's Investor Service is warning that unless the U.S. gets its financial house in order, it could lose its triple-A credit rating as early as 2013. Put another way, our status as a world financial power would be history.
Following is some additional context from a story that appeared today in the Wall Street Journal:
In a report released on Tuesday, Moody's set the two countries apart from other top-rated sovereign borrowers, calling them merely "resilient" rather than "resistant," a label it applied to Canada, France and Germany, where public finances are in better shape.
Moody's released the report as part of an effort, spurred by investor demand, to examine the creditworthiness of the world's most highly rated countries. There are 17 such "triple-A"-rated countries, ranging from the U.S. to Australia.
In both the U.K. and the U.S., Moody's said, much will depend on the vigor of the economic recovery and the willingness of governments to shrink the deficits.
Under the most pessimistic scenario put forward by Moody's, the U.S. would lose its top rating in 2013 if economic growth proves anemic, interest rates rise and the government fails to dent the deficit or recover most of its assistance to the financial sector.
Unlike several years ago, "now the question of a potential downgrade of the U.S. is not inconceivable," says Pierre Cailleteau, chief international economist at Moody's. "In a world that has lost its compass a bit, people want to understand what happens to risk-free assets."
We have $110,000,000,000,000 (trillion) of unfunded government liabilities, and that isn't even factored into this credit rating scenario. We also have a government that is clearly determined to print as much money as is necessary to fully execute their socialist agenda.
These two facts do not give one reason for much optimism in the short-term.
One thing is clear though, the leftist have to go - sooner than later.
Reader Comments (6)
This is flat scary. I'm not sure the general public understand just how devastating this would be to our standard of living. While I don't think we'd become a third world country, I do think we'd fall into the South Africa or Chile group - not squalid, but not good.
Rush talked about this a few months back. At the time they were saying we could lose of triple-A rating in the next seven years. Now it's down to four? Even if these Marxists got the boot, it would take a lot of time to overturn their many policies. This is very bad.
I'm not worried, when it happens I'll make a lateral move to Zimbabwe. We'll have about the same standard of living.
There are certain people in Washington (most of whom have a donkey moniker on their backs) who would rather we not be a "world financial power"; they would prefer that every country be of equal financial power.
Chris, you're exactly right. Not sure why that is, but I gave up trying to rationalize their actions years ago. I simply can't make any sense of it.
"who would rather we not be a "world financial power"; they would prefer that every country be of equal financial power."
" I simply can't make any sense of it."
They are "Cadillac communists" - i.e., all wannabe "czars".
We will need fast show trials, deportations, prisons and a few short ropes to save America.
(If you haven't already, read Whittaker Chambers' "Witness")