Comments Subscribe to Personal Liberty News Feed Subscribe to Personal Liberty
 

Moody’s Wants US To Eliminate Debt Ceiling Altogether

July 19, 2011 by  

Moody’s Wants US To Eliminate Debt Ceiling Altogether

Many groups have floated ideas to end the United States’ debt ceiling debate, and the credit rating agency Moody’s recently weighed in with its own plan: simply eliminate the debt ceiling.

In a report written by Moody’s analyst Steven Hess issued Monday, the credit rating agency said the plan put forth by Senators Mitch McConnell (R-Ky.) and Harry Reid (D-Nev.) “would be a positive step in the short term,” but “(w)ithout more substantial deficit reductions being included in such a plan, it would be negative for the long-term outlook,” reported an article on CNN.com.

The McConnell/Reid plan, often touted as a “backup” measure should the debt talks fail, “would allow for three short-term increases of the debt ceiling while at the same time letting lawmakers register their disapproval. The first increase would boost the debt limit by $700 billion and the next two by $900 billion each,” the article read.

“We would reduce our assessment of event risk if the government changed its framework for managing government debt to lessen or eliminate that uncertainty,” the Moody’s report read, according to CNBC.com. Last week, the agency threatened to downgrade the United States’ AAA credit rating if the Federal government cannot pay its debts.

The Moody’s report noted that other countries do not have debt limits: “Elsewhere, the level of deficits is constrained by a ‘fiscal rule,’ which means the rise in debt is constrained though not technically limited.”

The U.S. debt ceiling “has not effectively restrained spending, Moody’s notes, and the legislative process ‘creates periodic uncertainty over the government’s ability to meet its obligations,’” the CNN.com article read.

Special To Personal Liberty

You Sound Off! is written by our readers and appears the last Wednesday of each month. If you would like to submit an article or letter to the editor for consideration for You Sound Off!, send it to yousoundoff@personalliberty.com by the Friday before the last Wednesday of the month. To be considered, a submission should be 750 words or less and must include the writer's name, address and a telephone number. Only the writer's name will be published. Anonymous submissions will not be considered.

Facebook Conversations

Join the Discussion:
View Comments to “Moody’s Wants US To Eliminate Debt Ceiling Altogether”

Comment Policy: We encourage an open discussion with a wide range of viewpoints, even extreme ones, but we will not tolerate racism, profanity or slanderous comments toward the author(s) or comment participants. Make your case passionately, but civilly. Please don't stoop to name calling. We use filters for spam protection. If your comment does not appear, it is likely because it violates the above policy or contains links or language typical of spam. We reserve the right to remove comments at our discretion.

Is there news related to personal liberty happening in your area? Contact us at newstips@personalliberty.com

Bottom
close[X]

Sign Up For Personal Liberty Digest™!

PL Badge

Welcome to PersonalLiberty.com,
America's #1 Source for Libertarian News!

To join our group of freedom-loving individuals and to get alerts as well as late-breaking conservative news from Personal Liberty Digest™...

Privacy PolicyYou can opt out at any time. We protect your information like a mother hen. We will not sell or rent your email address to anyone for any reason.