Is the U.S. Credit Rating at Risk?
by Jeffrey Miron on March 15th, 2010
1 Comment
PARIS — The United States, Germany and other major economies have moved “substantially” closer to losing their top-notch credit ratings and can not depend solely on economic growth to save them, a report warned on Monday.
What should these countries do? The choices are:
Raise taxes;
Cut spending;
Do nothing and hope for the best.
Given the politicial obstacles to higher taxes or lower spending, ”group prayer” will probably win.
Categories: My Blog
Barry Staton
Given the fact that if Obamacare passes the U.S. will have to experience large tax increases just to keep our debt obligations on the same curve I think it will be group prayer. Even under Reagan spending increased, and after this election cycle there will definitely be no appetite for tax increases..but just praying for the problem to go away isn’t going to make it so, and both our currency’s place in the world and our ability to fund additional governmental largesse is held within the balance.
If I truly was a wise-guy I’d say that there is very little difference here between kneeling down and bending over. But I’m not so let me take that back…