Lake Erie Conservative

thoughtful discussion(s) about issue(s)

… Gotcha ! [Moody s Investors Services Shutdown & Default memo news]

Posted by paulfromwloh on Wednesday,October 9th,2013

… exactly as I thought ! …

… and this financial opinion comes from a professional financial firm …

.. SecTreas and POTUS were / are lying ..

..  Moody’s says that the U.S. Treasury Department can continue paying interest on the government’s debt even if Congress fails to raise the debt limit, preserving the nation’s sterling AAA credit rating.

.. In a memo being circulated on Capitol Hill Wednesday, Moody’s Investors Service offers “answers to frequently asked questions” about the government shutdown, now in its second week, and the federal debt limit. President Obama has said that, unless Congress acts to raise the $16.7 trillion limit by next Thursday, the nation will be at risk of default.

.. ” We believe the government would continue to pay interest and principal on its debt even in the event that the debt limit is not raised, leaving its creditworthiness intact,” the memo says. “The debt limit restricts government expenditures to the amount of its incoming revenues; it does not prohibit the government from servicing its debt. There is no direct connection between the debt limit (actually the exhaustion of the Treasury’s extraordinary measures to raise funds) and a default.

The Moody’s memo goes on to argue that the situation is actually much less serious than in 2011, when the nation last faced a pitched battle over the debt limit.

“The budget deficit was considerably larger in 2011 than it is currently, so the magnitude of the necessary spending cuts needed after 17 October is lower now than it was then,” the memo says.

Treasury Department officials did not immediately respond to requests for comment.

.. LEC again — Busted !! … Those idiots got caught in the act . Moodys , S&P (Standard & Poor s) , and others have done this stuff for centuries . They know their business , they do thorough research (legal & financial) , and know what they are talking about . I figured that something like this would emerge , but not from which firm , or when .

.. They want to protect their backers ‘  fannies . Also , their subscribers value this kind of info . It is what they are in this business for .

.. POTUS and SecTreas (Lew) should have known better . They have , or should have had , top legal minds to tell them this stuff . They went out , and lied about it , anyway ….

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