Saturday, July 30, 2011

A Game Of Charades

That's what all this debt ceiling squabble has been,a game of charades.Nobody-Republicans or Democrats- really wants to balance the budget and begin to reduce our debt;through gimmicks they move money here and there,call it a cut all the while they are increasing the budget.If you or I did that we would go to jail for fraud.

Here is what Moody's thinks of all our boondoggles;

The "limited magnitude" of both debt plans put forward by congressional leaders would not put the nation's AAA credit rating back on solid footing, Moody's Investors Service announced Friday.
"Reductions of the magnitude now being proposed, if adopted, would likely lead Moody's to adopt a negative outlook on the AAA rating," the credit rating agency said in a new report. "The chances of a significant improvement in the long-term credit profile of the government coming from deficit reductions of the magnitude proposed in either plan are not high."
It added that "prolonged debt ceiling deliberations" have increased the odds of a downgrade, but that the firm is still confident policymakers will avoid a default.
"It remains our expectation that the government will continue with timely debt service," the firm said.
It also clarified that as far as it is concerned, the nation will only default if it misses an interest or principal payment on U.S. debt, not if it misses payments on other obligations like federal employee salaries or Social Security benefits.

The report also gives credence to a claim popular among Republicans: that the government has enough cash to avoid a default even past the Aug. 2 deadline set by the Treasury Department.

"If the debt limit is not raised before August 2, we believe that the Treasury would give priority to debt service payments and could thus postpone a potential debt default for a number of days," it said. "Revenues would be more than adequate for some period of time to meet those payments, although other outlays would be severely reduced as a result."
Moody's previously put the nation's top credit rating on watch for a downgrade on July 13, as lawmakers continue to fight over a deal to raise the debt limit.
While Moody's is confident it will not have to downgrade the nation's rating because of a default, it maintained that long-term debt and deficit problems will continue to weigh on the AAA mark.
If the GOP had any guts-outside of 22 in the House they don't-they would tell Harry Reid where to stick it and do nothing,laying it right in Obama's lap telling him,"its your turn now big boy,prioritize the budget and cut it."That would never happen though,Obama would play hard ball and those delicate daisy's in the GOP would wilt in the sun and cave.We can all dream though,can't we.

One last thing,RUN,SARAH,RUN!

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