But, wait – there’s more. We can do it, again.
Ratings agency Moody’s on Wednesday placed the United States’s triple-A debt rating on a downgrade watch because of rising prospects the US debt limit will not be raised in time to avoid default.
“The review of the US government’s bond rating is prompted by the possibility that the debt limit will not be raised in time to prevent a missed payment of interest or principal on outstanding bonds and notes,” Moody’s said in a statement after the US financial markets closed…
Moody’s recalled that it had announced on June 2 that a rating it would be likely “in mid-July unless there was meaningful progress in negotiations to raise the debt limit…”
“An actual default, regardless of duration, would fundamentally alter Moody’s assessment of the timeliness of future payments, and a Aaa rating would likely no longer be appropriate,” it said…
The stalemate in Congress is threatening to push the US into defaulting on its obligations by August 2, according to Treasury estimates.
I realize most Americans don’t know the definitions for when a national economy enters or leaves a recession. Everyone would rather leave it to seat-of-the-pants judgements based on commuter traffic, what your kids’ classmates bring for school lunch or how many families in the neighborhood are in foreclosure.
Even the dummies who yammer about a double-dip recession haven’t learned enough economics to know that once you’ve left a recession for an appreciable spell — and the Great Recession ended in June 2009 according to standard metrics — then another recession added onto what we’ve survived one way or another would be exactly that. Another recession. One you can drop into the lap of the Republican Party as surely as you could the preceding.
Americans – who think there’s no reason to pressure the Congressional thugs who don’t care if the United States defaults on our debts – should step back and ask themselves if they want to go through everything that’s happened to this nation’s economy since December 2007 all over again? Only worse?