Moody’s, S&P issue warning to US on bond ratings
That’s not just gloomy speculation, either. As Steve Eggleston wrote earlier this week, Social Security has run cash deficits for most of 2010, meaning that the SSA has paid benefits mostly through borrowing. It will take a big hit in revenue this year, thanks to the 2% “holiday” created by the tax deal in the lame-duck session. Unless we maintain our bond rating or if we cut other spending enough to get the cash from the general fund, we may wind up having a big problem in covering those liabilities.
What could go wrong?
added 1/14. Perhaps this….
