{"id":9329,"date":"2011-04-18T13:56:25","date_gmt":"2011-04-18T17:56:25","guid":{"rendered":"http:\/\/cfif.org\/v\/freedom_line_blog\/?p=9329"},"modified":"2011-04-20T00:53:36","modified_gmt":"2011-04-20T04:53:36","slug":"outlook-on-u-s-sovereign-debt-lowered-to-negative","status":"publish","type":"post","link":"https:\/\/cfif.org\/v\/freedom_line_blog\/9329\/outlook-on-u-s-sovereign-debt-lowered-to-negative\/","title":{"rendered":"S&P Lowers Long-Term Outlook on U.S. Credit Rating to “Negative”"},"content":{"rendered":"

Standard and Poor’s\u00a0spooked\u00a0markets and sent news rooms scrambling today with its decision<\/a> to downgrade the long-term outlook\u00a0for the U.S.’s credit rating\u00a0to “negative” from\u00a0“stable.”\u00a0 In a statement<\/a> released this morning, the\u00a0ratings agency wrote:<\/p>\n

Because the U.S. has, relative to its ‘AAA’ peers, what we consider to be very large budget deficits and rising government indebtedness and the path to addressing these is not clear to us, we have revised our outlook on the long-term rating to negative from stable.<\/p>\n

We believe there is a material risk that U.S. policymakers might not reach an agreement on how to address medium- and long-term budgetary challenges by 2013; if an agreement is not reached and meaningful implementation is not begun by then, this would in our view render the U.S. fiscal profile meaningfully weaker than that of peer ‘AAA’ sovereigns.<\/p><\/blockquote>\n

The White House\u00a0swiftly responded<\/a>, calling\u00a0the decision a “political judgment” with which it disagrees.\u00a0<\/p>\n

Really?\u00a0 The national debt is more than\u00a0$14 trillion and climbing.\u00a0\u00a0The federal government borrows more than 40 cents for every dollar it spends.\u00a0 Entitlement spending\u00a0is spiraling out of control.\u00a0\u00a0And last week, the federal government was within minutes of shutting down\u00a0because President Obama and Congressional leaders were haggling over what ended up being<\/a> a\u00a0paltry few hundred million dollars\u00a0in spending cuts from this year’s projected $1.65 trillion deficit.\u00a0<\/p>\n

While\u00a0the credit outlook\u00a0downgrade\u00a0is being reported as a surprise, it shouldn’t surprise anyone. All S&P has\u00a0done is\u00a0acknowledge the obvious.\u00a0\u00a0Let’s hope\u00a0President Obama and Congressional leaders\u00a0get serious about doing the same.<\/p>\n","protected":false},"excerpt":{"rendered":"

Standard and Poor’s\u00a0spooked\u00a0markets and sent news rooms scrambling today with its decision to downgrade the long-term outlook\u00a0for the U.S.’s credit rating\u00a0to “negative” from\u00a0“stable.”\u00a0 In a statement released this morning, the\u00a0ratings agency wrote: Because the U.S. has, relative to its ‘AAA’ peers, what we consider to be very large budget deficits and rising government indebtedness and […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[2607,24,2606,394],"class_list":["post-9329","post","type-post","status-publish","format-standard","hentry","category-posts","tag-credit-rating","tag-obama","tag-standard-and-poors","tag-united-states"],"_links":{"self":[{"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/posts\/9329","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/comments?post=9329"}],"version-history":[{"count":14,"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/posts\/9329\/revisions"}],"predecessor-version":[{"id":9336,"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/posts\/9329\/revisions\/9336"}],"wp:attachment":[{"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/media?parent=9329"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/categories?post=9329"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/tags?post=9329"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}