S&P downgraded the U.S. debt rating. And it’s not looking good for the future either:
The outlook on the long-term rating is negative. As our downside alternate fiscal scenario illustrates, a higher public debt trajectory than we currently assume could lead us to lower the long-term rating again. On the other hand, as our upside scenario highlights, if the recommendations of the Congressional Joint Select Committee on Deficit Reduction–independently or coupled with other initiatives, such as the lapsing of the 2001 and 2003 tax cuts for high earners–lead to fiscal consolidation measures beyond the minimum mandated, and we believe they are likely to slow the deterioration of the government’s debt dynamics, the long-term rating could stabilize at ‘AA+’.
Hope and change just keeps coming.
Mass printing of money is almost for certain in our future. I figure than in another couple years I can probably pay off our mortgage with that half ounce of gold in one of my safes or a few hundred pounds of lentils…