http://www.rawstory.com/rs/2011/08/07/sp-head-agency-may-downgrade-...

 

The head of Standard & Poor's sovereign ratings said Sunday that the agency may downgrade the U.S. again.

"Given the economic and political situation in the U.S., which will we see, an upgrading back to AAA or further downgrades?" Fox News' Chris Wallace asked David Beers.

"We have a negative outlook on the rating and that means we think that the risk currently for the rating are to the downside," Beers said.

While explaining what the U.S. could do to get its AAA rating back, the S&P official mentioned entitlement cuts but ignored the agency's call to raise revenues.

"Does any compromise have to have entitlement reform and revenue increases to be credible?" Wallace wondered.

"The key thing is, yes, entitlement reform is important because entitlement is the biggest -- are the biggest component of spending and they are the part of spending where the cost pressures are greatest," Beers replied.

"The White House as you know is not happy with this decision and they have accused S&P of amateurism. They went through your numbers and found a $2 trillion overstatement of what the debt would be and when they pointed that out to you, you simply changed the rational and continued to downgrade the debt," Wallace noted.

 

"That is a complete misrepresentation of what happened," Beers claimed. "Here we are talking about highly technical assumptions about projecting budget base lines far in the future. We made the motifications that we did after a conversation with the Treasury, it doesn't change the fact that in our estimation, that even with the agreement of Congress and the administration this past week, that the underlying debt burden of the U.S. government is rising and will continue to rise, most likely, over the next decade."

"The haste with which S&P changed its principal rationale for action when presented with this error raise[s] fundamental questions about the credibility and integrity of S&P's ratings action," Treasury assistant secretary for economic policy John Bellows wrote last week.

White House chief economic adviser Gene Sperling added that S&P's actions "smacked of an institution starting with a conclusion and shaping any arguments to fit it."

"The magnitude of their error combined with their willingness to simply change on the spot their lead rationale in their press release once the error was pointed out was breathtaking," he said.

Beers told Wallace that he did not expect "that much impact" from the downgrade when the global markets open on Monday.

Views: 42

Reply to This

"Destroying the New World Order"

TOP CONTENT THIS WEEK

THANK YOU FOR SUPPORTING THE SITE!

mobile page

12160.info/m

12160 Administrators

 

Latest Activity

MAC commented on MAC's photo
Thumbnail

gvIKn.qR4e-small-MAJOR-MEAT-COMPANY-INVESTS

"I don't know why Less. Tyson has a huge company and they supply many other company's with…"
2 hours ago
tjdavis posted a blog post
11 hours ago
tjdavis posted a video

The Untold Stories Of Your Favorite Musicians | Hired Gun | Full Music Documentary

The Untold Stories Of Your Favorite Musicians | Hired Gun | Full Music DocumentaryThey are the “First Call, A-list” musicians, just 20 feet from stardom, yet...
11 hours ago
Doc Vega commented on Doc Vega's blog post An Empty Shell
"Cheeki Kea Thanks! Your messages are always positive and encouraging! Have a blessed day."
23 hours ago
Doc Vega posted photos
yesterday
Doc Vega posted blog posts
Friday
Sandy posted a photo
Friday
Doc Vega posted blog posts
Wednesday
cheeki kea commented on cheeki kea's blog post Southern Lights / Northern Lights engulf entire world.
"Another nay sayer tried to tell me today that man made auroras just couldn't be possible but…"
Wednesday
cheeki kea commented on Doc Vega's blog post An Empty Shell
"Thats a good poem right over target Doc V.  (We are told in the last chapters of clown word…"
Wednesday
cheeki kea commented on cheeki kea's photo
Wednesday
cheeki kea posted a photo
Wednesday
tjdavis posted a photo
Tuesday
Less Prone favorited Burbia's blog post Journalism as we know it
Tuesday
Less Prone commented on Less Prone's photo
Thumbnail

Rebuilding Khazaria

"For some reason the original article has been scrubbed, but it still exists in the wayback…"
Tuesday
Less Prone commented on Less Prone's blog post Pregnancy a Dicease?
"Thanks Doc!. This guy thinks he's a smart cookie, but totally fallen under the indoctrination.…"
Tuesday
Doc Vega posted blog posts
Monday
cheeki kea posted a photo
May 13
cheeki kea commented on cheeki kea's blog post Southern Lights / Northern Lights engulf entire world.
"It does force one to wonder... All sorts of things. "
May 13
cheeki kea posted a blog post

Southern Lights / Northern Lights engulf entire world.

well, well what do we have here then ! ? They are a long way from home. I wonder if anything Else…See More
May 13

© 2024   Created by truth.   Powered by

Badges  |  Report an Issue  |  Terms of Service

content and site copyright 12160.info 2007-2019 - all rights reserved. unless otherwise noted