Moody’s, one of the two largest bond rating agencies in the world, continues to keep in place it’s September 11th threatened downgrade of U.S. Treasuries, should the U.S. Government not solve it’s “fiscal cliff” deadline in December.
Further, Moody’s continues to say that the U.S. Government also needs to make significant improvements to it’s overall direction of national debt and annual budget deficits as part of avoiding a downgrade. If the downgrade takes place, little will happen in the short term. Of much more serious concern is that it would make 2 credit downgrades within the last year and half, prior to which the United State’s credit rating was the best in the world and there was never a downgrade. If this trend were to continue with more downgrades, then interest rates would increase at some point.
No one knows when this would happen, but once the rates begin to rise, it will begin long term harm to the economy. The U.S. government would be forced to pay more to borrow which would put added pressure to the budget and pressure on the Government to increase revenues to cover expenses.
Moody’s threatened downgrade Resources:
U.S. Department of Commerce – Helps american businesses become more innovative at home and competitive abroad.
U.S. Bureau of Economic Analysis – Provides statistics on consumer spending, corporate profits, travel and tourism and much more.
Entrepreneurworld – Resource for Entrepreneurs, including starting your own business, growing your business.
Bureau of Labor Statistics – Provides companies with up to date information on employment, demand, hiring, productivity and other information that may be useful to companies.
International Trade Administration – Creates jobs and economic growth by promotingU.S. companies abroad to governments in other countries.
More Moody’s threatened downgrade resources:
Department of Labor – Provides information on many labor issues that can be useful to companies, such as insurance, regulation, wages, wage hours, compensation, safety and health
U.S. Patent and Trademark Office –U.S. office to file patents to protect a companies new or existing proprietary products.
U.S. Trade and Development Agency – Promotes U.S. Exports to Foreign Countries, please review if your company is interested in exporting goods to foreign countries.
Public Radio Planet Money – All issues money related to the public.
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