Treasury Secretary Timothy F. Geithner said the U.S. is in no danger of losing its AAA debt rating even though the Obama administration has predicted a $1.6 trillion budget deficit in 2010. “Absolutely not,” Geithner said, when asked in an ABC News interview broadcast yesterday whether a downgrade is a concern. “That will never happen to this country.”
Then reality kicks in on March 15...............
March 15 (Bloomberg) — The U.S. and the U.K. have moved “substantially” closer to losing their AAA credit ratings as the cost of servicing their debt rose, according to Moody’s Investors Service…
Under the ratings company’s so-called baseline scenario, the U.S. will spend more on debt service as a percentage of revenue this year than any other top-rated country except the U.K., and will be the biggest spender from 2011 to 2013, Moody’s said today in a report. “We expect the situation to further deteriorate in terms of the key ratings metrics before they start stabilizing,” [Managing Director of sovereign risk at Moody’s in London] Cailleteau said. “This story is not going to stop at the end of the year. There is inertia in the deterioration of credit metrics.”
But hey let's add a a little more to the deficit and pass an GINORMOUS health care bill.
Who said that liberals were smarter?
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