Moody’s Text: To Downgrade US If No Deal To Cut Debt/GDP Ratio | ForexLiveBudget negotiations during the 2013 Congressional legislative session will likely determine the direction of the US government’s Aaa rating and negative outlook, says Moody’s Investors Service in the report “Update of the Outlook for the US Government Debt Rating.”
If those negotiations lead to specific policies that produce a
stabilization and then downward trend in the ratio of federal debt to
GDP over the medium term, the rating will likely be affirmed and the
outlook returned to stable, says Moody’s.
If those negotiations fail to produce such policies, however,
Moody’s would expect to lower the rating, probably to Aa1.
have you heard about bob woodward's new book, the price of politics?
the story told by wapo's watergate wonderboy of a failed presidential temperament is most apropos here
after sandbagging the grand bargain, according to woodward, with a last minute demand for an additional 400B of taxes after 800B had already been agreed to...
after boehner refused to take the pissed off president's phone calls for a day, only to get back to the punter in chief later that evening to tell him he was done, the deal was off...
according to woodward, the next day, july 23, 2011, president punt summoned the big 4 (reid, mcconnell, boehner, pelosi) to the white house, where the leaders, led by reid and his brave chief of staff david krone, "voted the president off the island"
"that was it, congress was taking over"
they felt there was no other way to avert that debt ceiling armageddon they all feared, all that full faith and credit stuff
"the leaders were asking the president to leave the meeting he had called in his own house"
it was only AFTER the perplexed and perpetually peeved president's removal that a deal could conceivably be reached, which it was, within hours
woodward continues---obama was, as always, "fuming," he felt reid and pelosi let him down
"the one thing i actually asked for, they didn't get it for me"
after a great deal of "moaning and groaning and whining and demanding and threatening," the pubescent president summoned reid and pelosi the next nite, july 24, at 6 pm
except reid showed up with krone instead, and the leader of the congressional rebellion turned the meeting over to his more wonky cos
"mr president, i am sorry, with all due respect... that we are in this situation that we're in, the first thing that baffles me, from my private sector experience, the first rule that i've always been taught is always to have a plan B"
"and it is really disheartening," the courageous chief of staff continued, "that you, that this white house would not have a plan B"
bottom line---reelect the presidential punter and we will unavoidably suffer that further downgrade
woodward's conclusion: “it is a fact that president obama was handed a miserable, faltering economy and faced a recalcitrant republican opposition---but presidents work their will, or should work their will, on important matters of national business... obama has not”
indeed, at the most crucial juncture of fiscal exigency, president punt was "voted off the island"
read woodward, if you dare
A president sidelined - The Washington Post