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The United States and Its A Credit Score. Moody's Threatens To Lower AAA U.S. Credit Rating

Updated on May 3, 2012

Moody's has warned the UNITED STATES that the country has a chance of having its credit score lowered.

Right now the United States is rated right at the top of countries with a AAA credit rating. Recently Moody's Investor Service has warned that if the countries burgeoning economic recovery does not develop into a complete recovery, then the countries credit rating is in peril.

Moody's is a credit rating agency, it has made warnings that should the United States economy not grow at the pace that is expected. Than the largest economy the world has known which is already extended in its finances could have already had its credit overextended. This could have the result that the AAA credit rating that the United States now holds is in danger of being lowered.

If the United states does lose its AAA rating, it would cause the country further economic troubles. It would cost us more to repay the gigantic debt that the Nation currently finds itself buried under. This just might become a reality for a country that is currently running a one and a half TRILLION dollar deficit, this year alone.

If the United States loses its AAA credit rating, the people of the United States may never pull out of this Recession.
If the United States loses its AAA credit rating, the people of the United States may never pull out of this Recession.

The United States Is Not Alone!

The UNITED KINGDOM received a similar warning in January even before the warning was given to the UNITED STATES. The Head of sovereign ratings, Moody's Pierre Cailleteau, told the UK that it would need a budget plan to retain its high-grade debt status.

The warning received by the US came as a sort of surprise. Six weeks earlier Moody's said that it had no intention of changing the US's debt rating. Moody's actually described the US's outlook as stable?

Moody's senior credit officer, Steven Hess,in Moody's Sovereign Risk Division recently told Reuters that economic growth is incredibly important to Moody's assesment of the sovereign rating.

Mr. Hess made the point that even though President Barak Obama has a recent budget for 2011 as well as related financial projections which have all been based on strong growth, the reality of the growth may be much lower then expected. Mr. Hess has claimed that he has some optimism that the United States can return to the path of growth it held before plummeting into the current recession.

The Solution!

 In order to protect our credit rating, we need to be fiscally responsible as a Nation.  We need to either cut spending or raise revenues.  Since the revenues would put further burdens on the American people it would make more sense to cut spending.

As with the average American family, we need to live within our means if we do not want to find ourselves in bankruptcy.  The private sector needs to be unleashed to expand and create jobs to lower the countries unemployment.

The more people working equates to a higher return of revenue.  It is really pretty simple if you think about it.

The United States cannot afford to lose its credit rating.



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