Archive | In the News

Standard & Poor’s Downgrades U.S. Credit Rating

Posted on 20 August 2011

On the evening of August 5th, credit rating agency Standard & Poor’s announced that it was lowering the United States’ credit rating from AAA to AA+.

“Lowering the nation’s rating to one notch below AAA, the credit rating company said “political brinkmanship” in the debate over the debt had made the U.S. government’s ability to manage its finances “less stable, less effective and less predictable.” It said the bipartisan agreement reached this week to find at least $2.1 trillion in budget savings “fell short” of what was necessary to tame the nation’s debt over time and predicted that leaders would not be likely to achieve more savings in the future.”

Read the whole story here.

Moody’s Places U.S. on Review for Ratings Downgrade

Posted on 13 July 2011

Amid concerns about the national debt and the debt ceiling, Moody’s put the U.S. credit rating under review for a downgrade.

The U.S., rated Aaa since 1917, was put on review for the first time since 1995 on concern the debt limit will not be raised in time to prevent a missed payment of interest or principal on outstanding bonds and notes even though the risk remains low, Moody’s said. The rating would likely be reduced to the Aa range and there is no assurance that Moody’s would return its top rating even if a default is quickly cured.

Read the whole thing here

Bait-and-switch, and then bankrupt

Posted on 25 April 2011

Defeat the Debt’s executive director, Rick Berman, had an op-ed on bankrupt government programs in the Sunday, April 24th, edition of the Iowa Gazette.

When a company advertises a great product at an unbelievably low price, then tries to sell you a higher-priced alternative because they never had the product in the first place, we call it “bait-and-switch.” It’s fraud, and it’s illegal.

When the government proposes a law and sells it to the public with unrealistically low cost estimates — knowing full well that we the people will pick up the tab — we call it “business as usual.”

Read the whole thing here

“Ratings firm…cut its outlook on U.S. government debt…”

Posted on 18 April 2011

On April 18th, the ratings firm Standard & Poor’s (S&P) downgraded the outlook of U.S. government debt from “stable” to “negative.”

The ratings company believes the chances that the U.S.’s credit rating will be lowered within two years are around one-in-three. (…) S&P said Monday it sees a risk that policy makers might fail to agree on how to address budgetary challenges by 2013, leaving the U.S. fiscally weaker than other triple-A-rated countries.

Read the whole story here.

“Budget Rises as Most Important Problem…”

Posted on 18 April 2011

A Gallup survey released on April 13, 2011, shows that concerns about the federal budget and our country’s deficit are rising.

Currently, 17% say (the federal budget/budget deficit) is the most important problem facing the country, the highest Gallup has measured since it began asking the “most important problem” question on a monthly basis in 2001, and the highest in any Gallup poll since January 1996.

Read the whole story here.

“How to avoid a debt doomsday…”

Posted on 18 October 2010

Writing in Politico on October 17th, 2010, Maya MacGuineas–the director of the Committee for a Responsible Federal Budget–described different scenarios that could trigger a US debt crisis:

We have already seen how quickly markets can turn against overly indebted countries. While the United States is not likely to become Greece in the immediate future, the parallels are too similar for comfort. The fact is debt investors eventually grow intolerant of countries that don’t have plans to improve their fiscal condition. And markets may eventually turn against the United States. If that happens, the situation could deteriorate very quickly.

Read the whole op-ed at CNN Money.

“We need to start tackling this debt…”

Posted on 23 September 2010

Writing in The Hill on September 21st, 2010, Sen. John Thune of South Dakota argued that  reducing the deficit should be a top priority of Congress, and offered suggestions on how it might be accomplished.

We are witnessing a massive increase in the amount of borrowing, the amount of spending, the amount of debt and the growth of government in Washington, D.C. We need to start tackling this debt, and we need to start doing it now. (…) The single most important thing Congress can do this year is to clearly state to the American people that our problem is not that taxes are too low, it is that our spending is too high. The only way to fix that problem is to cut spending.

Read the whole op-ed at The Hill.

“The deficit problem is excessive spending…”

Posted on 31 August 2010

In Politico on Wednesday, August 30th, former Congressional Budget Office director Douglas Holtz-Eakin and Cameron Smith wrote the following about a Value Added Tax (VAT):

The deficit problem is excessive spending — not inadequate revenues. (…) Adopting a VAT could add insult to injury and exacerbate the spending problem. Raising taxes of any sort might relieve Congress of financial market pressure to get its house in order. Unfortunately, this would quickly be undone because of rising federal spending.”

Read the whole thing here.

National Debt Clock: Congratulations

Posted on 19 April 2010

Politico runs Executive Director Rick Berman’s op-ed: Debt disaster dead ahead

Posted on 01 April 2010

When the credit rating agency Moody’s announced recently that the United States had moved “substantially” closer to losing its AAA bond rating, it largely ran as a wire brief, buried in newspaper business sections.

But this obscure announcement may one day be regarded as the beginning of the end of American prosperity.

Click HERE to read the full op-ed inPolitico.