Wednesday, September 25, 2013

Does the U.S. Deserve Its Credit Rating?

   Ever wonder how a country can be $17-plus trillion dollars in debt and still have a AAA or AA+ credit rating? I do. Some would measure the largest debt by GDP to debt ratio, which is fine, and the U.S. might fare okay. But, I do wonder how the U.S. would rank if you just took the total debt, $17-plus trillion, and determined how many countries have ever owed more.
   And, a triple A rating, just the same, you say?
   Well, I read how a country's likelihood to default is the centerpiece in determining what its credit rating will be. And, the U.S. is considered a sure bet to pay its bills. I read how as long as we can print as much money as we choose, we can print enough to cover all our bills, so we deserve a AAA rating.
    Great, let's get the presses rolling. Paying our $17-plus trillion just became an easy thing.
    Actually, I don't think it would be as easy as all that.
http://video.foxbusiness.com/v/1080905118001/does-us-still-deserve-triple-a-credit-rating/

http://www.santacruzsentinel.com/localnews/ci_18633096

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