The U. S. Credit Rating

Credit agency ratings cannot be overlooked in the discussion whether the U.S. keeps spending beyond its means today, or into the distant future when today’s politicians are dead or retired.

                                           

Politicians cavalierly seem to think it’s o.k to have budget deficits as long as government keep raising the debt ceiling. The reality: No one in the rest of the world will consider the dollar convertible, thus an investment. The cost of U.S. borrowing will then go sky-high. Thus, credit agency downgrading is the timely warning.

                       

The debt ceiling is the key that permits heavy spending; yet taxation always restricts business expansion and total government revenue.(See the Earl J. Weinreb NewsHole® comments and @BusinesNewshole at Twitter.)