As the White House and lawmakers call for renewed cooperation to tackle the deficit, a leading rating agency isn't buying it.
Standard & Poor's Ratings Service warned Monday that politics may be getting in the way of a budget compromise, and -- in an announcement which sent stocks tumbling -- said it was lowering the outlook for U.S. sovereign debt to "Negative" from "Stable" due to the risk posed by the growing deficit.....@...http://www.foxnews.com/politics/2011/04/18/treasury-defends-budget-outlook-ratings-service-downgrade/
The Obama administration disputed S&P's finding …..that is the problem with the current regime..if anyone's findings goes against the regime's finding than they are TOTALLY wrong.
Below is a couple of articles that support Standard & Poor's Ratings Service's warnings!
Framing The Debt Limit Debate.....
In May, Congress will begin debate on our nation’s debt limit. The debt limit is an alarm bell built into our nation’s laws, which forces members of Congress to confront out-of-control spending when our debt reaches a certain level. Five times in the last four years, we have ignored this alarm bell. This time must be different.
It would irresponsible and reckless for them to even consider raising the limit without also enacting spending cuts and reform. The nation’s credit worthiness is directly tied to our fiscal stewardship, not our desire to borrow. America would send a strong signal to global financial markets by taking prudent steps to address our out-of-control spending habits, not by blindly giving ourselves another blank check........@.... http://blog.heritage.org/2011/04/18/morning-bell-framing-the-debt-limit-debate/
Tax Hikes Can’t Fix the Deficit ….
In 2010, the federal government collected roughly $2.2 trillion in total tax revenue. The federal government spent around $3.5 trillion; the resulting deficit of $1.3 trillion was made possible by borrowing.
If Congress, rather than borrowing or cutting spending, raised income taxes by the $1.3 trillion necessary to pay for 2010 deficit spending, it would need to more than double income tax collections. In fact, income tax revenue would need to increase by 144% to cover the overspending. http://www.heritage.org/Research/Factsheets/2011/04/TAXES-ARE-NOT-TOO-LOW-Its-the-Spending-Stupid