The Foundry, the blog at The Heritage Foundation has this to report: Moody’s on Debt Limit: Calling Obama’s Bluff on Default. Here is how that post starts.
A voice of reason emerged today among the doomsday predictions over a U.S. government default if the debt limit is not raised by mid-October. The Washington Post reports that Moody’s, a top credit rating service, suggested that hitting the debt limit does not mean the U.S. would default:
“We believe the government would continue to pay interest and principal on its debt even in the event that the debt limit is not raised, leaving its creditworthiness intact,” the memo says. “The debt limit restricts government expenditures to the amount of its incoming revenues; it does not prohibit the government from servicing its debt. There is no direct connection between the debt limit (actually the exhaustion of the Treasury’s extraordinary measures to raise funds) and a default.”
The weird thing about this whole brouhaha over the debt limit is that our national debt ceiling is like a credit card limit. You got a credit card? What happens when you reach your limit? You stop borrowing right? When is that a crisis? When you are out of work, right? Is our government out of work? Not really. We are still paying taxes. Government shut down or not, we still pay and pay and pay and pay………………
Stop and think. What would be more troublesome? Do you have a friend who doesn’t know when to stop spending? What do think would happen if that friend had a credit card with an infinite card limit? And how else would we describe what Obama and the Democrats want?
Give The Folks At Moody’s Credit For Courage
Note that the when Moody’s published this observation it went out on a limb. Theirs is a heavily regulated industry. Undoubtedly, some in the Obama administration are already devising way to punish Moody’s.
- Moody’s: Obama is wrong, U.S. won’t default (theblaze.com)
- Would a default hurt the U.S.’s credit rating? Click to see what Moody’s has to say (gretawire.foxnewsinsider.com)
- Moody’s Confirms: US Won’t Default (powerlineblog.com)
- Moody’s Nukes Obama’s Debt Ceiling Fearmongering (pjmedia.com)
- Interesting: Moody’s calls BS on Obama’s debt default scare tactic (bluegrasspundit.com)