The “Economic Stimulus” bill, expected to be signed by President Obama today, will have yet another frightening long-term consequence. A report, issued by Moody’s Investors Service, said the increase in debt could have a negative impact on the country’s triple-A credit rating. An understatement to be sure. Steven Hess, a sovereign credit analyst at Moody’s, disclosed the unsettling news: “By the end of a two year period, the U.S. debt ratios will be higher and moving the country’s metrics to the lower end of the pack… this triple rating isn’t …
Defending his Trillion Dollar Debt Plan, President Barack Obama said critics of his plan were peddling “worn out old ideas” that won’t pull the country out of the recession. But it is Obama’s policies that are worn out and old. And its not just conservatives who are saying that. Howard Dean’s campaign manager Joe Trippi Tweets: “Old thinking and why it isn’t working” and links to this Los Angeles Times op-ed by Niall Ferguson: “Keynes Can’t Help Us Now: Governments cling to the delusion that a crisis of excess debt …
Last Friday Heritage fellow JD Foster detailed how President Barack Obama’s Trillion Dollar Debt Plan is destined to backfire: This debt explosion is likely to raise interest rates significantly for government debt, thereby increasing interest costs for future generations. More troubling at the moment, this policy will increase interest rates for all private debt such as home mortgages, consumer loans, and business loans. The near-term consequences of this debt bubble will be a deeper recession, a longer recession, and a weaker eventual recovery. Today the Financial Times reports: The US …
This Friday the New York Times reported: Even as Congress looks for ways to expand President Obama’s $819 billion stimulus package, the rest of the world is wondering how Washington will pay for it all. … “The U.S. needs to show some proof they have a plan to get out of the fiscal problem,” said Ernesto Zedillo, the former Mexican president who helped steer his country through a financial crisis in 1994. “We, as developing countries, need to know we won’t be crowded out of the capital markets, which is …
