With the new tax cuts, rating agencies should downgrade U.S. government debt to junk. Economists, pundits and politicians had little choice but to endorse the tax deal between President Obama and Congressional Republicans, because snapping back to pre-Bush tax rates would crush the economic recovery. But Washington exhibited not even the shadow of self-restraint and cut taxes far beyond what is needed or smart. .... Perhaps a special grade: âFâ âflee now before you get stuckâis appropriate for the junk sold by the U.S. Treasury. http://www.cnbc.com/id/40749001
When compared to historical standards the US is nowhere near junk status, excluding the period during and after the Revolutionary War. That being said, the track the US is on looks dire unless some action is taken to reverse course. A more immediate concern is the condition of a number of the states. Take Illinois, for example. <embed src="http://cnettv.cnet.com/av/video/cbsnews/atlantis2/cbsnews_player_embed.swf" scale="noscale" salign="lt" type="application/x-shockwave-flash" background="#333333" width="425" height="279" allowFullScreen="true" allowScriptAccess="always" FlashVars="si=254&uvpc=http://cnettv.cnet.com/av/video/cbsnews/atlantis2/uvp_cbsnews.xml&contentType=videoId&contentValue=50097650&ccEnabled=false&hdEnabled=false&fsEnabled=true&shareEnabled=false&dlEnabled=false&subEnabled=false&playlistDisplay=none&playlistType=none&playerWidth=425&playerHeight=239&vidWidth=425&vidHeight=239&autoplay=false&bbuttonDisplay=none&playOverlayText=PLAY%20CBS%20NEWS%20VIDEO&refreshMpuEnabled=true&shareUrl=http://www.cbsnews.com/video/watch/?id=7166293n&adEngine=dart&adCallTemplate=http%3A//www.cbs.com/thunder/ad.doubleclick.net/adx/request.php%3F/can/news/%7B%25videoNode%7D%3Bsite%3Dnews%3Bshow%3D%7B%25videoParentNode%7D%3B%7B%25videoFeatPath%7Dpartner%3Dnews%3Blvid%3D%7B%25videoId%7D%3Boutlet%3DCBS+Production%3BnoAd%3D%7B%25videoNoAd%7D%3Btype%3Dros%3Bformat%3DFLV%3Bpos%3D%7B%25posDart%7D%3Bsz%3D320x240%3Bord%3D%7B%25random%7D%3B&adPreroll=true&adPrerollType=PreContent&adPrerollValue=1" />
What nobody is willing to say... "Too much has been promised to too many... more than can be paid". Recipients of such benefits, understandably, "don't want to hear it". Nevertheless... Spending all around MUST be cut... there is no alternative. Piss and moan all you want... "you aint' getting what you thought you were"... (much of which erroneously promised, of course).
That is the one and only answer. Everyone who relies on the government for some sort of assistance is going to feel some pain in the very near future. Food Stamps, Medicaid, Medicare, Social Security, Disability Payment, and on and on... will have to be cut. If you can't provide for yourself you're in trouble. If you can provide for yourself, pray that doesn't change.
if japan has a huge debt and yet their bonds rating is far from junk status, U.S treasury bonds is no where near the junk status. However, it is possible if U.S treasury bonds become a junk status by: 1) U.S is no longer the strongest military worldwide 2) Opec decides to switch from petro dollar to petro gold 3) U.S no longer accept immigrants. After all, immigrants create wealth and innovation The question should be, will states like california, new york muni bonds become a junk status?