America’s triple A rating is at risk (FT)

[katty]

more: http://www.ft.com/cms/s/0/5534bd04-3f27-11de-ae4f-00144feabdc0.html?nclick_check=1

America’s triple A rating is at risk
By David Walker

Published: May 12 2009 20:06 | Last updated: May 12 2009 20:06

Long before the current financial crisis, nearly two years ago, a little-noticed cloud darkened the horizon for the US government. It was ignored. But now that shadow, in the form of a warning from a top credit rating agency that the nation risked losing its triple A rating if it did not start putting its finances in order, is coming back to haunt us.

That warning from Moody’s focused on the exploding healthcare and Social Security costs that threaten to engulf the federal government in debt over coming decades. The facts show we’re in even worse shape now, and there are signs that confidence in America’s ability to control its finances is eroding.

Prices have risen on credit default insurance on US government bonds, meaning it costs investors more to protect their investment in Treasury bonds against default than before the crisis hit. It even, briefly, cost more to buy protection on US government debt than on debt issued by McDonald’s. Another warning sign has come from across the Pacific, where the Chinese premier and the head of the People’s Bank of China have expressed concern about America’s longer-term credit worthiness and the value of the dollar.

[ThomCat]

1. Moody's is worried about Social Security costs?

We are trillions in debt because of wall street greed and they're going to blame this on Social Security?

That is part of the whole elaborate sham to justify cutting social security.

I agree that the US's credit rating should probably be downgraded, but they're fucked up if they think Social Security debt is their primary reason.

Corporate wall street, The Iraq and Afghanistan wars, and an endlessly growing military budget are the reasons. Social Security is a drop in the bucket compared to the real causes of our debt.

[Deja Q]

2. I certainly agree; Social Security is NOT the primary reason. Bailing out Wall St and fuzzy math are

Especially the latter, when #43 decided the costs of his war(s) could be kept aside from the general budget, making him look "better" in turn. We all knew it was a sham when he did that at the time too.