S & P warned about a possible decline in the U.S. credit rating

S & P (Standard & Poor’s) has warned the U.S. government if they could just lose the AAA credit rating if not immediately approves a policy to reduce the budget deficit and national debt in 2013. “If an agreement is not reached and meaningful implementation does not begin by then, in our view Would this render the U.S. meaningfully weaker fiscal profile Than That of peer ‘AAA’ sovereigns, “New York-based S & P said.

The possibility of this within 2 years, the ratings will be cut by one (from AAA to AA), this is based on Congress and the administration plans to reduce the deficit experienced by the U.S. Due to these statements, cash and the U.S. dollar crept up again, even if the shares decline.

The debate about the U.S. budget is a polemic that has not been solved until now. Obama has proposed cutting the budget of $ 4 trillion within 12 years. While the Republican Party asked the government to immediately speed up the process of cutting. S & P warning is taken lightly by the Obama administration.

Obama’s economic adviser, Austan Goolsbee actually saw the S & P’s warning as “political judgments” that are considered too excessive. “I do not think That the S & P’s political judgments is right,” Austan Gollsbee said.

Meanwhile Republican Party responded to the S & P as a warning sign to Congress to impose debt limit increase immediately if they do not want the U.S. credit rating down. “S & P’s negative outlook makes clear That the debt-limit increase is proposed by the Obama administration must be accompanied by meaningful Fiscal Reforms That Immediately reduce federal spending and stop our nation from digging Itself Further into debt,” the Virginia Republican said in a statement.

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