Monday, August 1, 2011

US Debt Rating Should Not Be Downgraded - Ever

The unhappiness regarding the compromise budget and debt ceiling deal should be a sign to rating agencies that the US will always make sure it pays out its debt obligations.  And it does feel like this time around, both sides are willing to accept necessarily and unpopular measures to make sure the US gets back on track.

Perhaps, it's the popularity of a President and the clever maneuvering of the Tea Party that is going to make it possible for both sides to be serious about US debt.  

What we saw over the weekend with the government working to find a compromise was what the Founding Fathers had intended.  And it is a system that is dysfunctional much of the time but can yield surprising results when needed. 

And in 2012, if President Obama is reelected, he may owe much of that to the Tea Party keeping him moderate.  

And as long as there are opposing sides working to make sure the US keeps its financial house in order, the ratings on US borrowings should never be downgraded.  Not just for our sake but for everyone else's.

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