Moody’s Contradicts President’s & Media’s Rhetoric:

Moody’s Contradicts President’s & Media’s Rhetoric:

Top United States credit rating agency, Moody’s, released a memo disagreeing with the Treasury Department’s assessment of a potential default if Congress does not decide to increase the debt ceiling.

“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 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.”

This leaves many wondering how there is such a disconnect between the federal government and Moody’s.

Click here to read the full Washington Post article. 

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