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Standard & Poors puts U.S. on notice

Standard & Poors has put U.S. policy makers on notice that unless they come up with a significant plan by 2013 to reduce the U.S. budget deficit and reduce the national debt, Standard & Poors may downgrade the United States from their current AAA bond rating.

Standard & Poors stated that if an agreement is not reached and meaningful implementation is not made by 2013, then the countries current and future fiscal standing will not continue to merit a AAA bond rating.

In addition, Standard & Poors lowered the bond outlook for the United States to “negative” for the first time ever.   Standard & Poors said there is a 1 in 3 chance that the rating may be cut within the next 2 years.