Those who say deficits and debts don’t matter and that massive government spending is the answer to this country’s economic woes — well, they’re flat-out wrong. We are careening toward $15 trillion in debt. The latest development:
Sounding the alarm about the country’s deep fiscal problems, Standard & Poor’s on Monday downgraded its outlook on the U.S. credit rating to “negative,” raising the likelihood the U.S. will lose its coveted ‘AAA’ rating.
The move signals the seriousness of the debt crisis in the U.S., which at most times is considered the safest investment in the world. It is likely to increase pressure on Washington to fix the country’s beleaguered balance sheet and could mark the first step to the U.S. losing its perfect credit rating that allows it to tap the capital markets at low rates.
