Tuesday, April 19, 2011

'US economic status declining'



Standard & Poor's warns of a decline in the US economic status

Source: Press TV
http://www.presstv.ir/detail/175599.html

US Standard & Poor's rating agency (S&P) says America's economic status will likely decline unless lawmakers in Washington take proper measures to control its growing debt.

The agency's attitude toward the United States' overall economic condition changed from “stable” to “negative,” while the S&P experts said they would deny the federal government the AAA rating, which identifies the US as one of the world's safest locations for investments, the Washington Post reported Monday.

The S&P report also reflected a slight decline in the stock prices, as the United States currently faces a nearly $14.3-trillion debt.

“We believe there is a material risk that US policy makers might not reach an agreement on how to address medium- and long-term budgetary challenges by 2013,” said the S&P.

“If an agreement is not reached... this would, in our view, render the US fiscal profile meaningfully weaker.”

However, the US President Barack Obama's administration says the agency is acting like a political pundit and that anyone else could also come up with a guess similar to that of S&P's.

“We believe S&P's negative outlook underestimates the ability of America's leaders to come together to address the difficult fiscal challenges facing the nation,” said Mary Miller, the Assistant Secretary of the Treasury for Financial Markets.

“Addressing the current fiscal situation is well within our capacity as a country,” she said.

There are disagreements in the House of Representatives on how to tackle the nation's widening budget deficit.

Obama earlier devised a budget plan that would cut $4 trillion from the deficits over the next 12 years, while the House Republicans laid out a resolution that would come up with a $4.4-trillion cut over 10 years.

Standard & Poor's, along with Moody's Investor Service and Fitch Ratings, make up the Big Three credit rating agencies in the United States, whose assessments influence the investors' decisions worldwide.

No comments:

Post a Comment

Thanks for commenting on this post. Please consider sharing it on Facebook or Twitter for a wider discussion.

Russian / Ukraine War - (Mar 08th, 2024)

How the Ukraine War Changed the World - (Mar 01st, 2024)

Redacted - Egypt's betrayal of Palestine - Vanessa Beeley

CrossTalk | Magical thinking - (Feb 28th, 2024)

Hillary Clinton Interrupted & Called Out in Berlin

We don’t want war with Israel, but if they impose it on us, we are ready – Hezbollah

ICJ delivers ruling in favour of South Africa

ICJ ruling | Court stops short of ordering Gaza ceasefire, demands that Israel prevent genocide

South Africa's Closing Argument Against Israel for Genocide at the ICJ

Wider Middle East war. US, UK strike Yemen

U.S., UK Start Another Unwinnable War In Yemen

Geopolitical Storm Brewing from Palestine to Ukraine

How the US Global Order is Challenged - With Pepe Escobar (Nov 20, 2023)

Shahid Bolsen - Message to the Israeli people

Roger Waters - To Whom It May Concern: Please Stop.

US policy slowing down China's economy w/ Jeffrey Sachs

Max Blumenthal s destroys RFKJr's outrageous Israelí Propaganda

Totalitarianism, Censorship and Syria with Peter Lavelle, Vanessa Beeley & Kevork Almassian

Putin shows treaty on Ukraine’s neutrality, signed by Kiev but dumped under Western pressure

Assad's speech at the Arab League Summit - what it means for the future of the region

Assad returns to Arab League

HUGE China brokered deal, Iran & Saudi Arabia restore diplomatic ties

Nord Stream pipeline & sabotaging peace w/Jeffrey Sachs

The Tragedy of Ukraine

Historical Events that Led to the Start of the Ukraine Conflict

Your Wars Will Destroy the Planet - Roger Waters

Healthy Athletes suffer Heart Problems After Getting the Jab