U.S. Debt Downgrades Are a Foregone Conclusion

GIMME SOME OF THAT GOOD 'OLE OBAMA DOUBLESPEAK (Photo credit: SS&SS)

Follow The Daily Ticker on Facebook! The nation's triple-A debt rating could be at risk of another downgrade. Moody's Investors Service warned Tuesday it would downgrade America's top-debt rating in 2013 if Congress does not address the ongoing fiscal crisis and actively reduce the country's debt-to-GDP ratio.

According to recent analysis by the non-partisan Congressional Budget Office (CBO), the U.S. federal budget deficit for fiscal 2012 will hit $1.1 trillion, topping the $1 trillion mark for the fourth straight year.

At the end of fiscal 2012, which concludes Sept. 30, U.S. government debt will grow to its highest level since 1950, or 75% of GDP. That is almost double the total amount of public debt recorded in 2007.

It's been just over a year since Standard & Poor's downgraded America's triple-A debt rating. In that time, little progress has been made on U.S. government budget matters while the country heads closer to the fiscal cliff, i.e. when $1.2 trillion in automatic tax increases and spending cuts will take effect on Jan. 1, 2013.

In a new report entitled "Update of the Outlook for the US Government Debt Rating" Moody's said: ... Continue to read.

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