Some Facts about the Debt Crisis

As of now it looks like America’s credit rating is going to be downgraded. No deficit reduction plan that can pass both houses of Congress and be signed by the president will be adequate to save America’s AAA credit rating.

This means that what is going on in Washington is political posturing. President Obama and Senate Democrats know the outcome; they have neither the intention nor the ability to forestall it. Their game plan is geared toward shifting the blame.

For the rest of us, facts matter. On this subject I am happy to link an excellent article by scholar Veronique de Rugy. In it she addresses the issues surrounding spending, taxes, and the debt.

Her article is entitled: “The Facts about Spending Cuts, Taxes, and the GDP.”  It is well worth a read. Link here.


For further information, here's a report about the latest from credit rating agency Moody's: Link here.