Ddi 12 ss disabilities Neg Dartmouth 2012 Andrew 1 ddi 12 ss disabilities Neg Strategy Sheet


D. Further downgrades would create a debt spiral, crippling the economy



Download 266.63 Kb.
Page15/111
Date29.06.2021
Size266.63 Kb.
1   ...   11   12   13   14   15   16   17   18   ...   111
D. Further downgrades would create a debt spiral, crippling the economy

Rowley 12 Charles Rowley, Professor Emeritus of Economics at George Mason University, 10/15/12, “Renewed threats to U.S. credit rating,” Charles Rowley’s blog, http://charlesrowley.wordpress.com/2012/06/15/renewed-threats-to-u-s-credit-rating/

If Moody’s downgrades and if S & P further downgrades U.S. credit ratings, this would move the United States out of the exclusive club of AAA-rated nations, and throw into question the privileged status of U.S. Treasury securities as a safe haven for global investors. Any significant flight from Treasuries would raise Treasury bond rates, with crippling consequences for the economy. A 1-percentage point increase in rates would raise Treasury debt payments by $1 trillion over the next decade, wiping out the benefits of all the budget cuts enacted by Congress last year. The dynamics of such a process may prove to be devastating, moving the U.S. federal government onto a path of sovereign downgrades that accelerates an already worsening fiscal situation. Greece here we come.



Share with your friends:
1   ...   11   12   13   14   15   16   17   18   ...   111




The database is protected by copyright ©essaydocs.org 2020
send message

    Main page