It will be a downgrade of historic proportions.
Jake Tapper at ABC reported:
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.
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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.
The official was unsure if the bond rating would be AA+ or AA.
Another government official confirms the Obama administration is preparing for the downgrade but is not 100% positive it’s going to happen, and if it does happen officials are not sure when it will happen.
And just think… In 2007 the national deficit was only $162 billion.
Then it went to $455 billion before Barack Obama tripled the deficit in a year.
The deficit will top a trillion dollars again this year. (The Captain’s Comments)