Moody’s Recommends Eliminating the Debt Ceiling
Steven L. Taylor
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Monday, July 18, 2011
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1 comment
Via Reuters: Moody’s suggests U.S. eliminate debt ceiling
The United States is one of the few countries where Congress sets a ceiling on government debt, which creates "periodic uncertainty" over the government’s ability to meet its obligations, Moody’s said in a report.
I would second that motion.
h/t: Taegan Goddard.
About Steven L. Taylor
Steven L. Taylor is a Professor of Political Science and a College of Arts and Sciences Dean. His main areas of expertise include parties, elections, and the institutional design of democracies. His most recent book is the co-authored
A Different Democracy: American Government in a 31-Country Perspective. He earned his Ph.D. from the University of Texas and his BA from the University of California, Irvine. He has been blogging since 2003 (originally at the now defunct Poliblog).
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I strongly disagree. Remember that this was the same Moody’s that had Fannie and Freddie Mac also rated as AAA investments until the wheels came off. There is no rational reason, the US shoiuld be rated as an AAA risk anyways and that’s been true for years. I think Moodys wants this govt to remove the “check engine light” for our out of control spending (which is threatening to bankupt us, debt limit or no debt limit) rather than doing anything serious to fix the engine.
This problem will not go away by ignoring it, and our politicos (of both parties) have proven that without a reason (like a debt limit) to do something, they won’t.
-Polaris