Most of us are familiar with our own personal credit ratings. These credit ratings control how much we can borrow and the interest rate we pay when borrowing money.
The U.S. government enjoys an AAA credit rating - the highest rating possible. It has held this Triple-A rating since 1917.
Unfortunately, due to recent massive increases in federal debt, the U.S. government may be about to lose that AAA rating.
President Obama inherited a massive $1.3T federal debt, and quickly raised it to $1.8T. That represents more than $100B in new deficit spending every month.
Prices on credit default insurance for U.S. government bonds have already risen, a sign that investors believe the U.S. government may default on its debt obligations.
The credit rating agency Moody’s has warned that the U.S. may lose its AAA credit rating due to increased government spending on health care and social security.
If we allow this to happen, the cost of every dollar of federal debt will rise, making our enormous debt burden even more difficult to repay.
If we do not act now to protect the future of the United States, this country will quickly deteriorate into the same kind of economic morass that has consumed so many other socialist nations.
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Will Spencer is the author of U.S. Government Credit Rating at Risk and the maintainer of Feds Arrest Liberty Activists.
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