So today, the Washington Post is reporting that Standard and Poors has moved US debt from ‘Stable’ to ‘Negative’. They further say that there’s a 1 in 3 chance that the US Debt rating will be cut in 2 years.
Ouch. This has all sort of implications. From the end of deficit spending through forced reductions to the loss of the dollar as the reserve currency. None of it particularly good for the US or the world.
I think I agree with them that our current leaders aren’t serious about straightening out the current imbalance. Further, I think they haven’t been serious in the last 30 years. I think the political system discourages this in all forms by imposing a 2 year election cycle horizon to the decision making process.