The NYT weighed in as S&P and Moody’s both warned that the AAA rating of the US was in jeopardy:
Standard & Poor’s and Moody’s Investors Service, warned that the nation’s gilt-edged rating might fall into jeopardy. But the two statements, made within hours of each other, were seized on by deficit hawks as further evidence that the government must reduce spending and debt to avert disaster. That is just what many Tea Party supporters insist.
But many economists say the reckoning, if it comes, is still years or even decades away.
Grouch: I don't buy the "decades away" argument. It seems like just another excuse to continue on the current insane spending trajectory, and postpone the inevitable until the crisis hits. Few politicians have the vision or leadership to head off an impending crisis. Our current crop is no exception. Soaking the rich is not going to get us out of this mess. Reduced spending and increased economic growth are our only hope..... or a bad case of prolonged inflation.