Also, the acknowledgment by Moody's of a possible review and downgrade comes barely a month after analysts at both Moody's and Standard & Poor's Ratings Services warned that the U.S. could be downgraded if it doesn't make progress in shrinking its elevated debt levels. Moody's said in January that if the U.S. doesn't act in the next two years, the likelihood of a negative outlook on its rating would increase.Then we have another Moody's:
The U.S. is grappling with a national debt of about $14 trillion and rising. Its debt is 66% of gross domestic product and is projected to hit 85% by 2015, the International Monetary Fund expects. WSJ
The report, by Moody's Analytics chief economist Mark Zandi, offers fresh ammunition to Democrats seeking block the Republican plan, which would terminate dozens of programs and slash federal appropriations by $61 billion over the next seven months.
Zandi, an architect of the 2009 stimulus package who has advised both political parties, predicts that the GOP package would reduce economic growth by 0.5 percentage points this year, and by 0.2 percentage points in 2012, resulting in 700,000 fewer jobs by the end of next year. WA Post
What is going on?
There is a plot afoot. The schophrenia has more to do with Moodys keeping their clients satisfied than telling the truth. They have, on the one hand, a number of big finance, like Goldman Sachs, who make a living selling Treasury paper, and want insurance on muncipal debt. On the other hand,... Wait, there is no other hand. If Treasury goes down, so does Moodys. If Big Finance goes down, so does Moodys, Moodys itself is so embedded in the government economy that is cannot escape.
Ben, Obama, Tim and Big finance have worked a scheme for QE3 and Amercan world socialist banking. But, the game is nearing the end, emerging markets have caught on, with an economy contracted, there is no path for the money. Getting close to default.
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