IPFS News Link • Economy - Economics USA
Here It Comes (Moody's)
• http://market-ticker.orgFrom the wire:
*MOODY'S SEES CUTTING U.S. WITHOUT DEAL TO LOWER DEBT/GDP RATIO
Parse that and think about it.
It means that unless there is a deal that stops adding debt faster than GDP advances Moody's will cut the US credit rating.
That's public (not including Social Security and Medicare) debt-to-GDP by the federal government.
Before you cheer over the 1993-0200 time frame as a potential model note what happened to total debt-to-GDP during that period.
We're using the Federal Government's borrowing to cover for the fact that the private economy hit the debt-acceptance wall in 2007.
That's why it's happening -- the government is desperately trying to evade recognition of the serial bubble blowing of the last 30 years and the economic consequences that must follow from what we have done.
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