US Downgraded: Egan Jones cuts US rating, cites high debt load
Downgrades will cause us to refinance at higher interest rate levels which is an automatic increase to the deficit. The Tea Party continues to dump on the middle class. Congress is responsible for the budget, and if there are cuts to be made and taxes to be raised then they must do so. Time for the goldbricking, flame-deflecting rantmeisters in the tea party to step up and do their damned job or shut up, resign, and go home.
Credit rating agency Egan-Jones has cut the United States’ top credit ranking, citing concerns over the country’s high debt load and the difficulty the government faces in significantly reducing spending.
The agency said the action, which cut U.S. sovereign debt to the second-highest rating, was not based on fears over the country not raising its debt ceiling.
Instead, the cut is due the U.S. debt load standing at more than 100 percent of its gross domestic product. This compares with Canada, for example, which has a debt-to-GDP ratio of 35 percent, Egan-Jones said in a report sent on Saturday.
Lawmakers in Washington are seeking to agree on spending cuts before raising the country’s debt ceiling, with five days remaining before President Obama’s deadline for a deal.