Moody`s CEO: US Won`t Default

Submitted by: HumanAction 3 years ago in

Moody"s - a credit rating agency - CEO suggests that, even without a debt compromise, the US won"t default.
There are 15 comments:
Male 390
Moody`s and Standard and Poor`s have been known to deliver ratings per request for several financial institutions - obviously only for the right price. Completely neglecting the advice of their own analysts in the name of great profits. These companies are a joke, except of course the implications of their "work" and their profits.
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Male 15,832
[quote]Love your ideas to back to the pre industrial age rules.[/quote]
Right, because all of these post-industrial rules and regulations are working out so well, and we all know, without all those rules and regulations, we wouldn`t even have industrialization.

I forgot to mention, abolish the DEA and the ATF as well.
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Male 6,662
@oldollie. Love your ideas to back to the pre industrial age rules. Those were such good times.. You and Brenda in Arizona would make a great couple in the asylum.
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Male 1,983
Doesn`t matter, America pays its bills and Congress has no say in it.

The U.S. Constitution forbids default.
Period. End of discussion.

The time to do something about it is BEFORE Congress spends the money, not after.
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Male 334
what i find funny is that moody`s is still one of the creditraters of the world, missing the lehman problems and allready having lowered the status of european countries from triplle a to a lesser rating yet for what ever excuse they can find they will not lower the credit rating of the usa.

Trust me, a lot of european countries like france lost their tripple a with a debt far lower then the usa, with a more complete plan on how to combat their deficit and with more actions taken then the us.

Funny thing though, one of the problems of the us is that they will always be in debt, they cannot help it, even if they would want to. Every dollar in the game is a lent dollar and they can only repay the ones they have, so how they will pay the interest on it, well, i am curious about that.
How is every dollar a lent one? cause they are given out by the federal reserve ,which is a private bank and the usa has to pay an interest on it, with dollars
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Male 14,834
"That just doesn`t seem intellectually honest to me."

It is blind hope.

But yes, I agree it is too much to ask that the Americans stop their illegal wars, hence less important stuff like feeding their people will be cut first.

I see they already cut some military death benefits. So you go to Afghanistan, get killed (or top yourself from the stress) and the government lets your kin go go without for a bit. Stay classy, America.
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Male 15,832
You realize that if Congress does not raise the debt ceiling, we would have to balance the budget IMMEDIATELY. That would be pretty drastic, but maybe not catastrophic. It would mean abolishing ALL unconstitutional and extra-constitutional cabinet departments, i.e., Agriculture, Commerce, Labor, HHS (turn all welfare back to the states), HUD, DoT, DoE, Education, DHS, the VA (put it back under DoD). We would also need to eliminate the EPA, the US Trade Representative, UN Mission, Council of Economic Advisers, the SBA, the FED, the IRS (go to a national sales tax collected by the states), and, or course, Obamacare.

We could also cut back quite a bit on the military. If anybody gives us any $#!+, no more laser-guided smart bombs or $million cruise missiles, and no boots on the ground. Just nuke `em with ICBMs (already bought and paid for).

I`m not sure if that would balance the budget completely, but it would be a good start. :-)
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Male 2,357
@Draculya

I don`t think you can, in one statement, suggest that the US military budget is too big (and therefore non-essential) while also suggesting that cutting the budget would kill essential services.

That just doesn`t seem intellectually honest to me.

I think you would agree that the US budget, and therefore, spending, is too large. If so, we must then also conclude that there are services provided that are non-essential. From this, it is easy to understand that, of the ~500 federal agencies, some can be cut without much consequence.
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Male 15,832
[quote]Great! Let`s start with the war-machine.[/quote]
You really are scared $#!+less that we`re going to come over there and kick your ass, aren`t you?
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Male 14,834
Wait, so if they don`t raise the debt ceiling, they pay the interest, but ESSENTIAL services get shut down? Great! Let`s start with the war-machine.
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Male 2,578
Although, technically, we default on our debt obligations all the time - through the process of targeted inflation. Let`s say we borrow 10 dollars and promise to pay it back in 5, 10, or 15 years. Our government actually TARGETS 2% inflation, which will devalue the currency at the end of 5-15 years to the point where it`s no longer worth 10 dollars. You end up paying back much less than you promised, a very stealthy default.

It happened big time in the 30`s with the arbitrary changing of the value of a dollar, by the government saying "gold isn`t worth X dollars anymore, it`s worth Y dollars now".

Or in 1971 when we defaulted on our Bretton Woods obligations. That was a default. And suddenly the CPI tripled and, surprise, incomes stopped growing in 1971 and the rich began keeping all the gains that year.
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Male 2,578
There`s only like 200 bil or so in debt service, out of over 2 trillion in tax revenue, so the risk is low.

But this highlights the future problem - we spend the same amount on debt service now with 17 trillion as we did in the 80`s with 2 trillion. If we ever have to pay a fair market rate, we will spend over a trillion in debt service every year. If that ever happens, it`s over. We will default.
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Male 2,357
@OldOllie

Exactly. There are people, including many on this site, that completely REFUSE to consider the possibility that this country will not default, even if the debt ceiling isn`t raised.

Yet, if I bring up this probability, they resort to tossing long-worded insults around in what is either an attempt to skirt the issue, or to impress their equally dimwitted colleagues. Sadly, it is a tactic that works more often than it should.
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Male 15,832
Section 4 of the 14th amendment to the constitution clearly states, "The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned."

That means the debt gets paid FIRST. If the debt ceiling is not raised, there are still PLENTY of revenues to service the debt. If Obama fails to do so, and instead pisses away the money on vacations and Obamaphones, he can and should be impeached.
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Male 2,357
Link: Moody`s CEO: US Won`t Default [Rate Link] - Moody`s - a credit rating agency - CEO suggests that, even without a debt compromise, the US won`t default.
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