Is S&P Trashing US Debt to Help Crush Social Security and Medicare? (Lindorff)

[Octafish]

S&P rates stuff so those who pay them can learn what to do, like buy or sell.



When the nation pays upwards of $413 billion/year on interest alone, it matters:

An "Oh Please!" Moment

Is S&P Trashing US Debt to Help Crush Social Security and Medicare?

By DAVE LINDORFF
CounterPunch.org
April 20, 2011

Yesterday’s breathless anxiety-inducing headline was that Standard & Poors, the rating agency, has issued a “negative outlook” warning on US sovereign debt, claiming that the US, in comparison with other countries with a top AAA credit rating, has "very large budget deficits and rising government indebtedness and the path to addressing these is not clear to us". S&P warned that there was a “a one in three chance that the US could lose its AAA rating in two years because of its mounting debt.”

The ratings firm--one of three global companies that Wall Street relies upon to establish the credit ratings of companies and nations around the world--said its analysts had “little confidence” that the Obama administration and the divided Congress would reach any agreement on a deficit-reduction plan before the next national election in the fall of 2012, and that they doubted that any such plan would be adopted until after 2014, two whole Congressional elections away.

So far, the other two ratings agencies, Moody’s and Fitch Ratings, have not followed suit. Moody’s issued a statement saying, ““Moody’s rating for the US is Aaa and remains stable,” though the company warns that “an upward debt trajectory and increasing fiscal pressures could increase the likelihood of an “outlook change” within “the next two years.”

SNIP...

Either S&P has been pressured by powerful Republicans and/or Wall Street Bankers to issue this warning, in order to add to national hysteria about the national debt and win more drastic cuts in social programs, or S&P is simply blowing it again.

CONTINUED...

http://www.counterpunch.org/lindorff04202011.html

Guess who'll be left holding the bag? Again.

Image: Conspiratorial Wink (detail) by Michael Samuels

[The Magistrate]

1. No Question At All, Sir: Yes, Absolutely And Unequivocally

[liberal N proud]

2. That would be my analysis

The corporations assisting the GOPer's in accomplishing the corporations tasks.

[mod mom]

3. and just like corporation not creating jobs to sabotage Obama even though

there are record profits. He needs to stand up to them and back the people over these crooks.

[spanone]

4. monday showed how much power the s&p wields

[JDPriestly]

5. I wondered when I saw the reports on S&P's ratings on the US

just why we are supposed to take anything the ratings bureaus say seriously.

After all, weren't they part of the crew that wrecked the economy?

Who could believe a word they say? I think I would probably believe the exact opposite.

[DCKit]

6. Magic 8-ball says "YES". In fact, it's stuck on "YES". nt

[Kurovski]

7. K&R. (nt)