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Moody’s Considers Downgrading America’s Credit Rating

July 18, 2011 by  

America's credit rating may be downgraded.Major credit rating agency Moody’s said that it is considering downgrading the United States’ sterling credit rating as lawmakers debate the debt ceiling.

“The review of the U.S. government’s bond rating is prompted by the possibility that the debt limit will not be raised in time to prevent a missed payment of interest or principal on outstanding bonds and notes. As such, there is a small but rising risk of a short-lived default,” Moody’s said.

Fox News reports that both sides used the report from Moody’s in an attempt to leverage the other in the debt limit debate. Aug. 2 has been given as the date by Treasury Secretary Timothy Geithner when America will begin defaulting on its obligations if the debt ceiling is not raised.

“An actual default, regardless of duration, would fundamentally alter Moody’s assessment of the timeliness of future payments, and a AAA rating would likely no longer be appropriate,” said the credit rating agency.

A spokesman for Speaker of the House John Boehner (R-Ohio) said that the warning from the credit agency shows that President Barack Obama must take action to reduce spending.

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  • s c

    This must be making the Chinese government nervous. In a way, I almost feel sorry for them. Who woulda thunk that America could or would put itself in a position where Moody’s says what many investors are thinking?
    Stay tuned for the next exciting episode of a Haavid bull loose in a china shop. Or, you could say what will Herr Putz do to rip America another new one? Thank God, ET isn’t around, or the Chicago Bubba would have us fighting a generational, intergalactic war with ET’s civilization and any other civilization that “needs” to be enslaved like America.

  • sean murrey ILLInio

    They got the money for the debt.They are scare tactics to get taxes raised no dealing or no rasing the debt ceiling.

    • DavidL

      Read the analysis from the bipartisan policy center. The facts are undisputed!

      • Brad


        Read the article and yes it was very interesting. So, our current liabilities averaged out at 306.7 Billion monthly so taking into account for every dollar spent the governemnt adds an additional .42 cents in deficit spending. So that means of the 306.7 billion to pay our liabilities 128.8 billion of that is borrowed monies being added to the national debt. Let’s start living within our means (balance the budgit) instead of spending our children and grandchildren into poverty.

  • Donald

    Moody, also suggesed getting rid of the debt ceiling to to avoid this kind of problem in the future.


      Donald, is this the one that WOULD ALLOW our “so and so” to do as he pleases with our credit ceiling? If it is I say, “NUTS”
      I do realize about where we stand in our credit disaster but NOW is the time to put a major block (or put the fire out)in the road and stop this insane rate of spending somebody else’s money. I do know the shoe will pince and maybe almost unbearablely but “WE HAVE TO DO WHAT WE HAVE TO DO” We CANNOT continue the way we are going, it is insane to think that we can. I thank my special “GOD” that we do have a few people in Congress that realizes this threatening disaster and are trying to put things in some kind of sensible order. We are the point now of, DO OR DIE. For our children and our grandchildren, let’s do it.

    • http://yahoo alex

      sure every time they max out one credit card just give them another

  • Buddy

    This is “elite speak” for: “We want to steal more of your money but can’t as long as you act responsibly”. What does the debt ceiling have to do with paying one’s bills? I’ve done it several times in my life; when I lost a job due to downsizing, went thru a divorce, etc. Our government surely can find a way without having to borrow more money; that is the LAST thing you do when you’re in a fiscal bind.

  • Raggs

    Don’t buy into this crap… More scare tatics from the communist in the white house… BTW if the debt celling is raised oblama will blow another trillion dollars on the unions.

    • eddie47d

      This is a wake up call to our nation to get the sleaze out of private business and big government. Time for them to mend their past practices and move in a new direction. If they can’t change their bad habits then maybe we deserve the bad credit rating.

      • Raggs

        Yeah in other words it’s a scam… oblama just want’s to blow more of China’s money, Raise taxes and usurp more power.

  • james

    Why would you trust Moodys, why arent they in prison for morgage fraud?

  • James

    At present, the federal government must borrow $0.42 of every dollar it spends. If it can eliminate 42 percent of its obligations by cancellation or defaulting them, then it wouldn’t have to increase the national debt. If that isn’t possible, then they must incease the national debt, or default on obligations when the money runs out.
    Monthly government checks can bounce like any other bad check. If the Treasury runs out of money, banks wont cash those checks.

  • FlaJim

    Florida just increased its credit rating by making a number of cuts and balancing the budget. Hope we don’t have any nitwits from DC asking us to cosign a loan for them.

  • jerry

    Who cares what Moody thinks or does. They are just another entity making its way, making money by telling people what is good an what is not. Just another investment scheme. If we default so what…..If they downgrade us who cares, the idiots that buy our debt..go figure those people out and maybe you will solve the worlds problems.

  • Michael E

    In the same exact way that TransUnion and Equifax work for the creditors and against the consumer, Moody and the S&P work against state and federal governments.
    The goal of every creditor is to find any, I mean ANY, excuse that would give them justification to raise your interest rate. The sole motivation here is PROFIT…Plain and simple.
    Foreign investors are tired of only getting 2% return on their purchase of U.S. Bonds – They want to lower our credit score so that they have an excuse to up our interest rate.
    Make no mistake – our credit rating will go down, no matter what we do. It has already been decided.

  • Bob Marshall

    Surprized Obama did tell us the US may have to borrow from the IMF. The organization that has destroyed so many countries economies and standard of living. Oh! Thats’ right. We give them three billion annually. The UN? nope! We are largest supporter. Our credit rating thanks to a very weak congress deserves to be downgraded. Obama is running a scam along with Geither. I keep remembering how we so taken to the cleaners because of the bailouts.

  • Gene

    Who are Moody’s for the U.S. Government to care if they downgrade the United States credit rating?
    Are they the Jews who are not, but are of the synagog of Satan?
    The Congress can settle the debt. It makes good publicity

    for their individual parties to drag it on and make it controversialfor us suckers whom they need to impress for the next election.

  • Wild Bill

    Any move Congress makes that does not make real, current-time reduction in spending will cause the ratings to be reduces, regardless of any limit change.

  • chuckb

    wild bill, that’s why i said ryans projected budget was all smoke and mirrors. unless these wimpy republicans hold their ground and not raise the ceiling all is lost. unless they demand cuts now not next year, all is lost. right now, after hearing rino johm mccain speak on radio, all is lost.

    • http://?? Joe H.

      like I said earlier, this is the time for all of we the people to call Email, and write our reps and DEMAND that they hold their ground against raising the limit!!! We need to CUT SPENDING!!!! We need to treat the illness, not just the symptoms!!! There is a ROT in Washington that will spread to the rest of the country unless we MAKE OUR VOICES HEARD NOW!!!


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