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The Tea Party Downgrade Part 2

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Published on Sep 12, 2012

So, last August - the S&P credit rating agency downgraded our nation's debt. It was referred to as the Tea Party downgrade - since House Republicans refused to come up with a deal until the midnight hour to raise the nation's debt limit and prevent the United States from defaulting on its debts around the world. The downgrade occurred just after Speaker of the House John Boehner bragged that Republicans got 98% of what they wanted in the debt limit deal. The Republican Party was clearly responsible for the downgrade. In fact - in the report explaining why they downgraded our debt - S&P said that one reason was because, "...the majority of Republicans in Congress continue to resist any measure that would raise revenues, a position we believe Congress reinforced by passing the act." So...that downgrade of America happened. And it might happen again soon - this time done by Moody's Credit Rating agency \\

Today - Moody's issued a warning to the United States that a debt downgrade could be on the horizon if Congress doesn't address the coming fiscal cliff and doesn't put in place policies to cut our federal debt. The Moody's statement reads: "If those negotiations lead to specific policies that produce a stabilization and then downward trend in the ratio of federal debt to GDP over the medium term, the rating will likely be affirmed and the outlook returned to stable. If those negotiations fail to produce such policies, however, Moody's would expect to lower the rating, probably to Aa1."Now - there are two ways to reduce the debt. Cut spending or raise taxes.

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