Sunday, July 31, 2011

Moody's: Neither debt plan protects the nation's AAA rating - The Hill's On The Money

Moody's: Neither debt plan protects the nation's AAA rating - The Hill's On The Money

In scanning the headline of the major outlets online are all pointing toward talks on the debt ceiling getting "closer". It will be interesting to see what comes out of these talks. As the article says, Moody's is not really concerned about the raising of the debt ceiling nor do we really need to raise the debt ceiling to pay our debt. Actually, not raising the debt ceiling actually is a good thing for America and it's credit rating because the focus going forward will be to reduce the debt in order to pay for other programs involved in the budget. Many are blaming the Tea Party faction of the Republican party since they are unwilling to compromise. I wonder if this same conversation took place when President Lincoln drew the line in the sand on slavery! Sometimes standing your ground is in the best interest of the country and right now that is one of them. We cannot sustain the debt we have so how does it makes sense to raise the debt ceiling?