Even without a debt default, it looks increasingly possible that the world’s credit rating agencies will soon downgrade U.S. debt from the AAA standing it has enjoyed for decades. A downgrade isn’t catastrophic because global financial markets decide the creditworthiness of U.S. securities, not Moody’s and Standard & Poor’s. The good news is that investors still regard Treasury bonds, which carry... Read more
Archive for the ‘American Thought’ Category
Toying With Default
July 26 | Posted by mrossol | American Thought, ObamaI just hope “they” don’t make the situation worse than it already is. ======== Barack Obama was in full-scold mode Friday night, summoning Congressional leaders to the White House to “explain to me how it is that we are going to avoid default.” It’s a terrific question, albeit one the President refuses to answer. He remains far more interested in maneuvering to... Read more
How Spending Cuts—Not Higher Taxes—Saved Canada
July 23 | Posted by mrossol | American Thought, Debt, Economics, Liberal Press, ObamaWhen Jean Chretien became prime minister in 1993, Canada faced a fiscal and economic breakdown. The government’s share of the economy had climbed to 53% in 1992, from 28% in 1960. Deficits had tripled as a percentage of gross domestic product over the prior two decades. Government debt was nearly 70% of GDP and growing rapidly. Interest payments on the... Read more
