Was Beck Right? Despite Deal, U.S. Credit Rating Could Still Be Downgraded
- Posted on August 2, 2011 at 3:31pm by
Jonathon M. Seidl
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On Monday, Glenn Beck wrote an op-ed for The Blaze that had a simple warning: despite an impending debt deal, the U.S. could still be downgraded, and probably would be. No plan out there “comes close to solving our long-term problem,” he wrote. Guess what? A major rating agency agrees.
Even though the bill to raise the country’s borrowing limit and prevent a possible U.S. debt default passed in Congress on Tuesday, it may not be enough for the U.S. to maintain its coveted AAA debt rating. That’s according to Fitch Ratings.
On Tuesday, Fitch said the agreement to raise the debt ceiling and make spending cuts was an important first step but “not the end of the process.“ The rating agency said it wants to see a credible plan to reduce the budget deficit ”to a level that would secure the United States’ `AAA’ status.”
Sounds a lot like what Beck has been saying doesn’t it?
Fitch expects to conclude its review of the U.S. sovereign rating by the end of August. As the debt deal currently stands, it is possible the U.S. debt rating could be downgraded at that time, Fitch said.
David Riley, managing director at Fitch, said in an interview with The Associated Press: “There’s more to be done in order to keep the rating in the medium-term.”
Fitch is one of the three main ratings agencies that rate debt that is issued by countries, states, corporations and municipalities. Ratings are based on a likelihood of default. The AAA rating is the highest available and signifies an extremely low likelihood of default.
The other two agencies – Moody’s Investors Service and Standard & Poor’s – declined to comment Tuesday. Both have signaled in recent weeks that they might downgrade the country’s debt rating to AA. Had the U.S. defaulted on its debt, a downgrade from all three agencies would have been likely, experts have said.
Riley said he was also worried about the weak economic reports released in the last few days. On Tuesday, the Commerce Department said that consumers cut their spending in June for the first time in nearly two years. On Monday, another report showed weakness in manufacturing. And last Friday’s report that in the first half of the year the economy grew at its slowest pace since the recession ended in June 2009.
“If the economy won’t grow at 2.5 percent over the long term, it has pretty profound implications from a fiscal point of view,” said Riley.
“That means the U.S. is poorer than it thought“ and will face even tougher choices ”in terms of taxes and spending,” he said.
The ratings agency also said that between federal, state and local government debt U.S. government debt will be as large as the country’s economy by the end of 2012 – or 100 percent of the country’s gross domestic product. And Fitch said it expects the country’s debt level will continue to rise. The agency warned that would not be consistent with a debt level that would allow the U.S. to retain its AAA sovereign rating
Which means a lot of things, including a possible “I told you so moment” for Beck.
The Associated Press contributed to this report.
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Comments (147)
Lt_Taz
Posted on August 2, 2011 at 4:19pmMr. Beck, as usual your predictions are Sterling 99.999%
Report Post »beckisnuts
Posted on August 2, 2011 at 5:24pmHis predictions are horse manure. He throws a ton of it on the side of the barn, hoping some will stick. It’s an old con artist technique. No one knows the future when it comes to the real world. The supernatural world is another story. In fact, I can guarantee you that Jesus will not appear on earth in 2012, and I will be proven correct.
Report Post »Bro Geo Too
Posted on August 2, 2011 at 7:32pmLt. — right on.
BS — what an amazing waste of keystrokes. Poor thing. . .
Report Post »Mateytwo Barreett
Posted on August 2, 2011 at 4:13pmNo offence- but damn, you would have had to be in a coma not to anticipate this!
Report Post »Snowleopard {gallery of cat folks}
Posted on August 2, 2011 at 4:22pmUnfortunatly most of the nation is in a coma.
Report Post »Dinkiecb
Posted on August 2, 2011 at 4:58pmThe nation‘s been in a coma for years the ones that aren’t are ignored or made fun of and told they don’t know what their talking about…we the taxpayers are just stupid people and ignored, and told what to do and like sheep keep revoting in the jerks who are leadin us down the garden path. What’s it gonna take?? How about a sever depression like the one in the 30′s or worse. Must be Bush’s fault… BS! It‘s the american voters who’ve let this garbage continue this long.
Report Post »llotus
Posted on August 2, 2011 at 7:07pmbeckisnuts……..you wont even know it till its too late. Lotus.
Report Post »fatjack
Posted on August 2, 2011 at 4:12pmIf Moody doesn’t downgrade with the economy still in the tank, then Moody was part of the ploy to scare or is a fraud.
Report Post »Denverlady
Posted on August 2, 2011 at 9:02pmFatjack: I totally agree with you. The second I heard about how Moody’s was going to maintain our AAA credit rating, the first thought in my head was that they were in bed with BO.
We Conservatives must start to stand up for ourselves in a more aggressive stance. We have been holding back for wayyyyyyyyyyyyyyyyyyyy to long!
Report Post »Exrepublisheep
Posted on August 2, 2011 at 4:10pmGlen throws out a lot of paint and crows about the stuff that sticks. Google beck is wrong and start reading, but get comfortable, theres a lot there.
Report Post »PATTY HENRY
Posted on August 2, 2011 at 4:52pmFIRST OF ALL NEOPHYTE …it’s GLENN….secondly the fact that there was EVEN ANY conversation about stemming this SPENDING by this “WORST PRESIDENT IN THE HISTORY OF AMERICA” is due to one person: GLENN BECK. First he showed us that there were 3.5 times more of us and then he encouraged the 9/12 gathering which also encouraged the 4/15 TEA PARTIES. IT was through and by GLENN BECK that AMERICANS got off their sofas, turned off their TVS and took to Meetings and demanding that this lousy CONGRESS stop acting like ROCK STAR Princes and Princesses and start taking care of AMERICA.
I think YOU, dude, would be HARD PRESSED to find a FACT that GLENN has stated that DIDN‘T HAPPEN or WASN’T TRUE… Ungrateful and misguided are you? YEP.
Report Post »swankyc
Posted on August 2, 2011 at 4:52pmOne of the very first is that clip of “I cant debunk the FEMA camps”. It’s too bad that he went on to do an hour long show debunking them. Perhaps you should just listen instead of “painting and crowing” idiotic marxist talking points.
Report Post »danfinrud
Posted on August 2, 2011 at 4:59pmThat is funny. I see the cost of everything increasing. THat means Inflation. My salary buys less and less. So how can I help grow the economy if my purchase ability gets smaller. I must pay the cost for Food/Car/Apartment/Insurance and less left over every month. Will any pay raise cover the loss of purchase capability. I doubt it but the Federal government can grow the budget by 8% a year without passing a budget. Amazing we make less yet government is able to spend more. Of course the bottom line is they must raise taxes to cover their 8%+ increase in spending every year. WHich again takes money out of my budget. Think before you right that all is well.
Report Post »Incredulous321
Posted on August 2, 2011 at 5:04pmSo, I did. I read several articles from several different sites. What I read was some relatively thoughtful, scholarly debates about some issues that Beck has commented on. In the articles I read, I don’t see how Beck is wrong. He has an intelligent opinion. Another thing I noticed was that most of the sites we’re dated 2010. What… they finally gave up because he’s either right, or at least thoughtful about everything important he says? Gold is up again today. QE3 is a real possibility. Glenn admires Martin Luther King Jr. and finds his accomplishments in the civil rights movement more important, at the time, than his socialist tendancies. Tell us specifically what he’s wrong about. If this Goggle search is the best you’ve got to try and denegrate Beck, you’re going to have to do better.
Report Post »beckisnuts
Posted on August 2, 2011 at 5:33pmExrepublisheep, you are exactly correct. Besides the fact that this story is brimming with “ifs” and conjecture, Glenn has been wrong many times in the past. Glenn also employs the common parlor trick of speaking in such general terms that no matter how the future plays out, he can claim it’s as he predicted. For instance, remember the story last year concerning a small group of students who protested an increase in fees at universities in the UK? Glenn claimed that was going to sweep Europe and then the United States in the weeks ahead. It never did. He is so entrenched in his belief that we are living in the end times, that he takes the slightest event and claims it’s a sign that Jesus will be here any day. He is a fear monger, plain and simple. Funny how fear mongering helps his little money train keep rolling too isn’t it?
Report Post »PATTY HENRY
Posted on August 2, 2011 at 5:50pmI wonder why people who hate GLENN BECK and want to paint him with their filthy brushes bother coming on here? They accomplish nothing but make us want to protect him and his staff/family more. Without BECK that fool in the WH would have passed the HC debacle in July of 09 and by now there would AMERICACORP Brown Shirts marching in the streets. Thanks GLENN!!!
Report Post »Eric_The_Red_State
Posted on August 2, 2011 at 4:07pmHysteria and speculation……. come on….. we have enough REAL news to deal with.
We don’t need –
METEOR MIGHT HIT EARTH TOMORROW AT NOON (and it might not) – FILM AT 11:00
Report Post »13th Imam
Posted on August 2, 2011 at 4:48pmWomen, Children, and Minority’s hurt worst.
Report Post »beckisnuts
Posted on August 2, 2011 at 5:36pmWhen Glenn is not raking some poor woman over the coals, like he did to that woman in Eugene, OR last week, he is thumping his chest and proclaiming “TOLDJA!” He is a true horse’s ass.
Report Post »riverdog1
Posted on August 3, 2011 at 12:59pmpatty….
Report Post »beck did nothing and no there were never any brownshirts (#10 million on the nazi references). if anything glen and palin, hannity rush and the rest of the idiots got in the way of medical reform.
RightPolitically
Posted on August 2, 2011 at 4:02pmWell, the stock market is about to close around 200 points down, under 12,000 Dow. I believe that is because Wall Street expects a downgrade of our national credit rating. Beck is likely correct. I too think it is a fate acompli.
Report Post »hauschild
Posted on August 2, 2011 at 4:32pmI don‘t think it’s necessarily the “downgrade” as much as it is the masking slowly falling off the clown.
Anyway, I wouldn’t be surprised if the Obama admin is working feverishly with the rating agencies to prolong any downgrade for as long as possible. Obama wants the destruction, but he wants it to happen at a much slower pace. I think this one might have caught the old boy off guard. I’m sure tons of pressure will be heaped upon these agencies to hold off on any bad news until “things settle down”, this amidst 2.4 trillion in additional spending in the near term.
It’s wild, people!
Report Post »OhSuzieQ
Posted on August 2, 2011 at 7:10pmbeckisnuts
Posted on August 2, 2011 at 5:36pm
When Glenn is not raking some poor woman over the coals, like he did to that woman in Eugene, OR last week, he is thumping his chest and proclaiming “TOLDJA!” He is a true horse’s ass.
Hey Nuts, YOU only wish you had what Gleen Beck has!!
Report Post »llotus
Posted on August 2, 2011 at 7:27pmBeckisnuts……I`v been reading your BS for sometime and its safe to say that you are the horses ass. Lotus.
Report Post »chexfive
Posted on August 2, 2011 at 4:01pmBLAZE, DO A STORY ON THE SUPER CONGRESS, THE COUNCIL OF 13 that they put in the DEBT BILL.
THE POWER TO INJECT OR OVERTURN ANY LAW…ANY LAW!
The ultimate tool to make congress and The American People Silent!
We are being overtaken at the hands of both parties!
People, we have just been usurped big time!
Report Post »lylejk
Posted on August 2, 2011 at 4:10pmI agree. This act is so potentially dangerous to our Republic that any Congressmen/Senator that voted this one should be, if we get a chance, voted out of office (I prefer kicked, but we all know that won’t happen).
http://www.infowars.com/council-of-13-to-rule-america/
Report Post »lylejk
Posted on August 2, 2011 at 4:31pmI just checked my state’s stats. Both my Senators voted against this one (thank God for them). Only two of the number of House of Representatives voted against this monstrosity and they both are Freshmen; one of them was my Representative. So, happy I am that at least the folk that represent me voted against this idiotic stupid Republic killing bill. You all need to check to see how you are represented too. :)
Report Post »LOJ
Posted on August 2, 2011 at 4:01pmI believe Glenn is right and we are headed for the Downgrade, I also believe that when the Bush Tax cuts expire the Tax hikes will automatically go into effect, thus further destroying the economy.
Report Post »101
Posted on August 2, 2011 at 5:07pmThe rating agency actually said something a little negative about the U.S. debt level. Like we didn’t know any of this??? The rating agencies are last year’s T-shirt.
There’s only one sure thing in this world Gold & silver!
Report Post »beckisnuts
Posted on August 2, 2011 at 5:41pmDavid Stockman knows from experience and has stated that a tax hike is necessary. You remember Mr. Stockman I’m sure, from the Reagan administration. He was right then and he is right now. But entitlements and all spending must be cut as well. Seriously cut, not like this nonsense we all just witnessed.
Report Post »PATTY HENRY
Posted on August 2, 2011 at 6:03pmTHERE IS NO reason for any tax hike you liberal loon. Maybe get Obama’s buddy Imelt to pay some taxes, revamp the tax code…but your boy…the one you worship, has been receiving huge amounts of $$ from Wall Street… why don’t you and the rest of the 50% who pay NO taxes start paying taxes.
WHY don’t we kick everyone out of the USA who is ILLEGAL instead of providing housing, schools, medical for them?? WHATCHA liberals gonna do when NO ONE is working and NO $ comes in?
Who’re you gonna blame then? First election: Tea Party turned the conversation around in DC. Next election: Tea Party is going to TURN DC around.
Report Post »beckisnuts
Posted on August 2, 2011 at 6:51pmNonsense, Patty Hen. You are really something. So much anger. Everything you wrote – every lying statement – is false. False Patty cakes! But we surely can see what an angry, frustrated, little finger wagger you are. People like you end up in poor health from the anger and stress you carry. You would benefit from a new perspective on life.
Report Post »sWampy
Posted on August 2, 2011 at 4:01pm2008, try 2007 when the democrats took over both houses.
Report Post »capecodsully
Posted on August 2, 2011 at 3:59pmS&P and Moodys said a Balanced Budget Amendment would save our credit rating, playing with numbers would not. I guess the Obama administration didn‘t get the memo or maybe just couldn’t figure out what it meant. Harry was thinking about roses and fruits. Pelosi was thinking about a botox touch up.
Report Post »quill67
Posted on August 2, 2011 at 3:59pmGlenn is a bright guy: He knows TWO DOES NOT EQUAL FOUR. The credit rating agencies said we needed at least $4Trillion in Debt reduction we cut $2 Trillion in fake debt. It does not take a bright person to notice that $2 in fake cuts is not the same as $4 Trillion demanded to keep our credit rating. Although perhaps it does require one to understand the Tea Party.
Report Post »MidWestMom
Posted on August 2, 2011 at 3:59pm“The rating agency said it wants to see a credible plan to reduce the budget deficit ”to a level that would secure the United States’ `AAA’ status.”
Hold on there a minute – Didn’t congress & obumbler assure us this bill was a credible plan and would save our AAA rating?? (as well as slashing our debt with broad strokes)
Report Post »[heavy sarcasm]
RightWingMom
Posted on August 2, 2011 at 3:57pmIt’s all part of the Progressive plan….destroy our economy, bring down the Republic, implement the Marxist Utopia.
God save our Republic!
Report Post »Mtroom
Posted on August 2, 2011 at 3:56pmnot stoopid…they just believed the lie’s coming from Washington and the “nothing to see here” politicians
Report Post »toidiegalliv
Posted on August 2, 2011 at 3:53pmV Man, I suspect you are right. These people are probably more guilty of malice than they are stupidity. The history of the world is bloodshed and tyranny and the American experiment that would not work in France in the 18th century has little to work with now in the USA. You sound like you may have made some prep. Best regards.
Report Post »Karama
Posted on August 2, 2011 at 3:53pmDidn‘t Moody’s tell us they were going to do it anyway? I’m pretty sure they did. Whether we passed the bill or not.
Report Post »Teaparty-grammy
Posted on August 2, 2011 at 3:53pmYep — as we have observed before–it is not “fear-mongering”, if what you are saying is true! What astonishes me is that despite everything he has been RIGHT about, the moonbats and the rest of the country are still buying that, “Oh, Glenn Beck is just a fear-monger” hogwash from the leftist MSM.
Nothing to see here, Sheeple. Go back to sleep now. We have everything under control, and Uncle Sam is taking care of you. Yeah . . . right.
Report Post »Steel Awesome
Posted on August 2, 2011 at 3:51pmThere’s nothing to worry about, folks. Paul Krugman says the credit rating doesn’t matter.
Now we can all rest easy.
Report Post »Anonymous T. Irrelevant
Posted on August 2, 2011 at 3:49pmObama has no idea how to go through the loan process, or meet a payroll. He has always had “people” do it for him. It’s no wonder the man-child doesn’t know that more spending, when you are broke, means bad credit. Question is, what’s he going to do when the collectors come calling?
Report Post »MidWestMom
Posted on August 2, 2011 at 4:22pmHe’ll blame Bush, the entire Republican party, Conservatives, Libertarians, Constitutionalists, Small Business, non-union shops, everyone who contributes to man-made global warming because they don’t drive electric cars, FOX viewers, Glenn Beck viewers, TSA protestors and all the nasty, violent, terrorist Tea Party members. Not necessarily in that order.
The answer is permanently engraved on his teleprompter.
Report Post »Goodgriefgeezlouise
Posted on August 2, 2011 at 3:48pmAbsolutely…In comparison to the rest of the world the US still looks good..But Obama is leading us down that slippery slope at record speed…His economic vision comes from one of those socialist books in his library..His knowledge is only theoretical…It’s an experiment..That’s what a professor does..They have these huge egos ya know?..
Problem is when the US is downgraded and intrest rates rise…You wanna see trouble..Rising rates will put a hurt on this country that we haven’t see in a good long time..They have downplayed it so far..But a rise in these record low rates will bring this economy to a screetching halt…and the downgrade is almost automatic the way things are going..Debt bill or no debt bill..
Report Post »fliteking
Posted on August 2, 2011 at 3:45pmSeems as though a downgrade is what they are seeking anyway.
Obama, Reid, et al.
Report Post »bhelmet
Posted on August 2, 2011 at 3:44pmI love Obama’s statement that RAISING the debt ceiling is the FIRST step to living WITHIN our means. Is that what Harvard, Columbia, et al teach? Common sense is truly dead!
Report Post »sWampy
Posted on August 2, 2011 at 4:00pmYou have to actually attend to learn anything.
Report Post »Servant Of YHVH
Posted on August 2, 2011 at 3:41pmI wonder if Glenn ever gets tired of these “I told you so” moments. I pray that he doesn’t! Now we can all pray that more and more people, especially politicians start believing in his “moments” and act accordingly!
Report Post »Obama Snake Oil Co
Posted on August 2, 2011 at 3:34pmI can understand that. If I owed more than I take in and make no effort to pay it down, I am sure my credit rating would be toast. Add to spending more than I can even imagine borrowing….might just be a problem…
Report Post »commonsenseguy
Posted on August 2, 2011 at 3:44pmnot when you are a liberal sucking,mao loving,anti america hating, communist supporting,left wing moron.
Report Post »American Soldier (Separated)
Posted on August 2, 2011 at 3:32pmIf only we’d be downgraded to an F. That’s where we belong.
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