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> US Credit rating will almost assuredly fall again if we go over the cliff [2]. The cited article indicates the opposite -- that simply reducing the deficit b
by anonymoushn 14y ago
> US Credit rating will almost assuredly fall again if we go over the cliff [2].
The cited article indicates the opposite -- that simply reducing the deficit by doing nothing would encourage the ratings agencies not to cut the US credit rating, while passing "temporary measures" that allow us to keep our high deficit and are very unlikely to be temporary would give us better odds of a downgrade.
- TomatoTomato 14y agoQuote from article: "Fitch, meanwhile, said even a deal to avert the cliff might not be enough to save the country's AAA rating."
- anonymoushn 14y agoThe preceding sentence: "Ultimately, if Congress and the president can't reach a deal to stabilize and eventually reduce the debt, now at $16 trillion, Moody's will probably cut the United States' current Aaa rating." Doing nothing is much closer to this sort of deal than any measure that reduces the amount of tax increases or spending cuts. The following sentence: "Temporary measures to stave off the budget shock without a credible strategy for the years beyond could earn the country a downgrade, said David Riley, managing director for sovereign ratings at Fitch."