Moody’s; US T-Bills at risk
So if you won’t listen to Republicans that we need to cut spending instead of raising taxes, how about listening to Moody’s (Financial Times link);
The US is at risk of losing its top-notch triple-A credit rating within a decade unless it takes radical action to curb soaring healthcare and social security spending, Moody’s, the credit rating agency, said on Thursday.
The warning over the future of the triple-A rating – granted to US government debt since it was first assessed in 1917 – reflects growing concerns over the country’s ability to retain its financial and economic supremacy.
It could also put further pressure on candidates from both the Republican and Democratic parties to sharpen their focus on healthcare and pensions in the run-up to November’s presidential elections.
Most analysts expect future governments to deal with the costs of healthcare and social security and there is no reflection of any long-term concern about the US financial health in the value of its debt.
But Moody’s warning comes at a time when US confidence in its economic prowess has been challenged by the rising threat of a recession, a weak dollar and the credit crunch.
So while every Democrat candidate for President promises free health care, the experts are warning against it. While Old Europe struggles under crush of their socialist policies of welfare for the lazy and health care for all, the US, the world’s economic powerhouse, is on the verge of destroying the entire world’s economy by aping the failed policies of Europe.
But then, if Democrats understood economics, they’d be Republicans.
