News
Federal
In the News >
Press Releases
Publications
E-newsletters
State
Join Our Newsletter
Help us bring the truth about the nationís debt to life. Sign up today for updates and more information.

 
A Rock And A Hard Place
6/10/2011

Chinese ratings agencies say the US is defaulting on its debts by inflation. US rating agencies say they will downgrade US Debt without an increase in the debt ceiling. Do we lose either way?

From The LA Times:

A U.S. default would have severe reverberations in global markets, a top Federal Reserve official said just hours after Fitch Ratings warned it could slash U.S. credit ratings if the government misses bond payments.

St. Louis Federal Reserve Bank President James Bullard said "the U.S. fiscal situation, if not handled correctly, could turn into a global macro shock."

Some Republican lawmakers have said a brief default, which would be inevitable in August if lawmakers fail to raise the nation's $14.3-trillion debt ceiling, might be acceptable if it forces the White House to deal with large budget deficits. More here.

<< Back