Those who have been following the fauxsterity from the spending behemoth in DC will not be surprised at this news.
From Reuters, U.S. loses AAA credit rating from S&P:
NEW YORK (Reuters) – The United States lost its top-notch AAA credit rating from Standard & Poor’s on Friday, in a dramatic reversal of fortune for the world’s largest economy.
S&P cut the long-term U.S. credit rating by one notch to AA-plus on concerns about growing budget deficits.
U.S. Treasuries, once undisputedly seen as the safest investment in the world, are now rated lower than bonds issued by countries such as the UK, Germany, France or Canada.
The outlook on the new U.S. credit rating is negative, S&P said in a statement, a sign that another downgrade is possible in the next 12 to 18 months.
(Reporting by Walter Brandimarte; Editing by Jan Paschal)
Stay tuned for updates.
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7 August 2011
Tom McCammon shows how the liberal spin machine is selectively quoting the S&P report in order to, well, lie of course! S&P Downgrade – Spin vs. Reality.
6 August 2011
Stanley Kurtz on S&P Has a Point:
It’s going to take time, debate, and above all elections to resolve this conflict. Supposedly, our squabbling political parties are incapable of compromise. In fact, we have serious disagreements on first principles that cannot and should not be resolved in the absence of a more fundamental determination of which way the country wants to move. Whether or not Barack Obama is reelected will be the single most important factor determining the direction we take. Nothing much will happen until that question is resolved, S&P notwithstanding. And for all the problems it causes, that is the way it has to be.
Kevin Williamson on Downgrade Nation:
On Feb. 7, 2010, the secretary of the Treasury, Timothy Geithner, was asked whether persistent deficits put the United States in danger of losing its AAA credit rating. “Absolutely not,” he said. “That will never happen to this country.” A little over a year later it did, when the ratings agency Egan-Jones downgraded the United States to AA.
The frivolousness of the political theater in Washington this last month and its mostly fraudulent media coverage did huge damage to the United States. It confirmed to the world, as S&P’s analysis suggests, that Washington is institutionally incapable of genuine reform. This was one of those it’s-the-music-not-the-lyrics moments: As damaging as the specifics of the ”deal” were, the broader sub-text of a political class pretending that it was meaningful was even more so.
Michelle Malkin on The downgrade delirium
5 August 2011
Cato Institute video on the significance of the U.S. Credit rating.