ABC News has just reported that the federal government expects the pristine AAA credit rating of the United States to be downgraded. According to a government official, Standard & Poors is going to downgrade the credit rating of the U.S. Government. Among the reasons cited will be “Republicans saying that they refuse to accept any tax increases as part of a larger deal.”
This proves once again, just how irresponsible the GOP has been throughout this debt ceiling crisis. Coming on the heels of yesterdays 500 point loss on the Dow Jones, this horrible news will affect millions of Americans and their families as the world braces for economic collapse. As the private industry comes to realize that the government will no longer be able to spend money, interest rates will rise and the unemployment rate will increase.
Also frightening is the fact that the economic situation in Europe continues to degrade, which will worsen when S&P officially lowers the federal crediting rating, affecting American markets even more. Republicans had several chances to compromise with Democrats but held America hostage to score political points against President Obama. After Congress passed the Republican dominated debt deal, Americans breathed a sigh of relief as many thought a crisis had been averted. But, it now appears that Republicans shot the hostage after all.
ABC News reports:
“A government official tells ABC News that the federal government is expecting and preparing for bond rating agency Standard & Poor’s to downgrade the rating of US debt from its current AAA value.” Among the reasons cited will be “Republicans saying that they refuse to accept any tax increases as part of a larger deal.”