A government official tells ABC News that the federal government is expecting and preparing for bond rating agency Standard & Poor’s to downgrade the rating of US debt from its current AAA value.
Officials reasons given will be the political confusion surrounding the process of raising the debt ceiling, and lack of confidence that the political system will be able to agree to more deficit reduction. A source says Republicans saying that they refuse to accept any tax increases as part of a larger deal will be part of the reason cited.
Anybody think the Tea Partiers will go for any type of tax increases if there is a downgrade?
No, neither do I.
Welcome to our brave new world…where completely avoidable economic problems become unavoidable.
Just remember this next election.