The "limited magnitude" of both debt plans put forward by congressional leaders would not put the nation's AAA credit rating back on solid footing, Moody's Investors Service announced Friday.
"Reductions of the magnitude now being proposed, if adopted, would likely lead Moody's to adopt a negative outlook on the AAA rating," the credit rating agency said in a new report. "The chances of a significant improvement in the long-term credit profile of the government coming from deficit reductions of the magnitude proposed in either plan are not high."
It added that "prolonged debt ceiling deliberations" have increased the odds of a downgrade, but that the firm is still confident policymakers will avoid a default.
It appears that a downgrade of US credit rating is in the works, which is the reason why these stories about US default leading to a downgrading of its rating are being floated in the media. Since it is apparent that the US dollar is destined to die a fiery death; the stage is being presently set so that when it happens, those responsible for its demise can conveniently lay the blame on senior citizens or welfare recipients or other social programs like unemployment rather than where it really belongs: the banks of Wall Street and the Federal Reserve System. So the downgrade will undoubtedly come which will set the stage for an actual default not the phony default story being presented by Obama and the media. When an actual default happens the US will not pay foreign nations for its debt, primarily China. The day of the actual default will be the day the Global Economy dies and the world descends into Anarchy for several years, which will claim tens of millions of lives and leave the world in ruins far greater than those of Europe after World War II.