The Treasury Departmenthas set Aug. 2 as the deadline for
raising the nation's $14.3 debt ceiling to avoid a possible
default. One of the national credit rating agencies, Moody
has assessed the need for Congress to move quickly as critical.
This is to avoid America defaulting on the country's obligations
Congress must also agree on a substantial deficit-reduction
package.
Despite several weeks of negotiations, the White House and
Republicans leaders have not been able to strike a deal to
rein in government spending while increasing the nation's
borrowing limit. Democrats have insisted on raising new
revenues in any deal that would include deep spending cuts.
But Republicans are adamantly opposed to any tax increases,
even if it is limited to closing tax loopholes for the
wealthiest Americans.
Republicans are now debating whether to get behind Senate
Republican Leader Mitch McConnell's backup plan that would
empower President Obama to raise the debt ceiling by
simply making the request along with proposed spending
cuts to Congress, which would vote on whether to disapprove.
Even then, Obama could veto the vote, forcing Congress to
muster a two-thirds majority to override the veto and prevent
the increase.
The warning from Moody's has added fresh urgency to the
debt negotiations.
Rep. Chris Van Hollen, the top Democrat on the House Budget
Committee, said that "The fact that Moody's put the United
States on its watch list and may downgrade our AAA bond
rating underscores the danger for those who would hold our
economy and jobs hostage to a rigid ideological agenda --
instead of acting in the best interests of our country."
"Playing Russian roulette with full faith and credit of
the United States is reckless and irresponsible," he said.
Read more: http://www.foxnews.com/politics/2011/07/14/moodys-considers-downgrading-us-credit-rating-amid-stalemate-over-debt-limit/#ixzz1S5U7ormP
Sheila McKinney
