Moody’s Says U.S. Credit Rating At Risk

Moody’s Says U.S. Credit Rating At Risk (external - login to view)

Moody’s, a credit rating agency, says the U.S. government’s triple-A credit rating is jeopardy due to soaring health care expenditures and Social Security. This shouldn’t be all that surprising. Think of a corporation whose expenditures are growing faster than its profits. Such a firm, generally, wont be around long. And that is precisely the problem with Medicare. It is growing at a clearly unsustainable rate, and as such the U.S. becomes more of a credit risk.
The US is at risk of losing its top-notch triple-A credit rating within a decade unless it takes radical action to curb soaring healthcare and social security spending, Moody’s, the credit rating agency, said on Thursday.

The warning over the future of the triple-A rating – granted to US government debt since it was first assessed in 1917 – reflects growing concerns over the country’s ability to retain its financial and economic supremacy. [...]

But Moody’s warning comes at a time when US confidence in its economic prowess has been challenged by the rising threat of a recession, a weak dollar and the credit crunch. [...]

Unlike Moody’s previous assessment of US government debt in 2005, Thursday’s report specifically links rises in healthcare and social security spending to the credit rating.

“The combination of the medical programmes and social security is the most important threat to the triple-A rating over the long term,” it said.

Steven Hess, Moody’s lead analyst for the US, told the Financial Times that in order to protect the country’s top rating, future administrations would have to rein in healthcare and social security costs.
But we have McCain telling us he is going to cut Medicare premiums. Every Democratic candidate wants to actually spend more money. In the case of Senator Clinton; she proposed to fund her spending, in part, by rolling back the Bush tax cut (external - login to view)s. Sounds good at first until you realize that the Bush tax cuts will expire on January 1, 2011 and that all of Senator Clinton’s spending will actually add to the budget deficit and exacerbate the situation.
I'm shocked that Moody's would consider cutting health care costs to be more beneficial than the war in Iraq. At least improved health can get the person back to work and pay his taxes. What financial return is there in the war in Iraq, unless Moody's is taking Iraq's future neo-colonial status into account?
I heard some U.S. Citizens think joining up with Canada would fix the problem... More Justification For The Amero & NAU?

China told the U.S. delegation they no longer have faith in U.S. Currency Dec. 17th of last year... wonder what they think of it now??

Must see link ->> (external - login to view)
Why is heathcare a threat to the US? Isn't it privatized?

What's the other option for Social Security; add another 2 trillion of debt on to privatize it, then have individual investors screw it up like only individual investors can and will do?
Hyperinflation Special Report

April 8th, 2008
Printer Friendly (PDF) Version (external - login to view)
What is this? (external - login to view)


Issue Number 41
April 8, 2008

Inflationary Recession Is in Place
Banking Solvency Crisis Has Opened First Phase of Monetary Inflation
Hyperinflationary Depression Remains Likely As Early As 2010
I just dug up this chart and it is quite surprising. I always thought our health care system was among the best. What is really surprising is the amount of money the Americans spend per capita on health care.

North America & United States are one of the wealthiest nations in the world. yet, it cannot it provide acceptable healthcare for its citizens despite what its government does or lack thereof. As it is in United States and their "conservative" values, the government IGNORES the problem just like during the British Imperialism while LIBERALS cry out for solution. Just as the problem got worse and more and more people changing their economic policy more closer to so-called "Socialism," the right-wing conservatives still believes somehow the big market and big wall-street will fix the problem through free market. Lies.
This is why neo-conservatives must be stamped out of every village and hamlet in Canada. Swimming lessons for the lot of them.
Why the US is willing to bankrupt its gov't to save sicko financial companies is beyond reason. A last gasp of a corrupt system. Yet, financing a national health care system is repugnant socialism!! Are they FUNNY or what?

One of the most successful entities in the US, NFL football, loves socialism. All teams, big or small, share national TV revenue whichi s billions of dollars. Which is what allows small market teams like Green Bay to prosper.

The first law of economics is that every capitalist wants a monopoly. Gov't supported if possible.
Quote: Originally Posted by KreskinView Post

Why is heathcare a threat to the US? Isn't it privatized?

No, it's partially private and partially government financed just like in Canada. Both public and private financing suck. The government financing isn't paying enough, so hospitals are losing money. Our hospital is something like 6 million in the red so far this year, partly because medical/medicare don't reimburse enough to cover the actual costs of treating patients. It also doesn't help that many people with private insurance don't pay the portion of the bill they are responsible for. Then throw in a lot of people with no insurance at all, but they make too much for medical/medicare so the hospital basically has to just lose that money too. I feel bad for people who can't afford insurance, but I'm quickly losing patience for people who just choose not to buy it and then get all the free healthcare they want.

Similar Threads

Bush approval rating drops to 24%
by Locutus | Oct 30th, 2007
U.S. movie rating system to change
by CBC News | Jan 20th, 2007
CPAC Rating (1)
by ASPaula | Jun 12th, 2006
no new posts