Fitch Ratings downgraded the U.S. credit rating from AAA to AA+ today, citing continued erosion of governance, fiscal deterioration, and growing government debt.
The following is a statement from Maya MacGuineas, president of the Committee for a Responsible Federal Budget:
Today’s downgrade should be a wake-up call – we need to get our country’s fiscal and political house in order. The United States economy remains strong, but we are on an unsustainable trajectory.
As Fitch points out, our national debt is high, deficits are rising rapidly, interest costs are consuming an increasing share of revenue, and we have numerous major fiscal challenges on the horizon. We also came far too close to default during the last debt limit debate.
The Fiscal Responsibility Act represented an important step in the right direction, but already there are signs of backsliding. Instead, policymakers need to build on those efforts with further deficit reduction. And we must do so without putting the nation’s full faith and credit at risk. This could start with a bipartisan fiscal commission that puts all parts of the budget and tax code on the table.
Whether one agrees with Fitch’s decision to downgrade the United States government or not, we are clearly on an unsustainable fiscal path. We need to do better.
We can’t control what others do and we can’t stop misfortune from striking. But we can control our own actions. Those who are financially prudent will most likely enjoy success, even if events don’t always go their way.
QUINNSCOMMENTARY 
I keep saying this phrase and I will repeat it: the frog (US government spending) in the pan of water has already been cooked to a boil( massive deficit spending) and will be burnt crisp (exponential trajectory of deficits) until there’s ashes remaining( hyperinflation and default).
It’s just a matter of time. Enough people are dependent upon federal largess and Congress is responding to their ever expanding demands.
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Mr Quinn. I agree 100% with everything you said. However, in a week (or sooner) no one will remember what Fitch said!
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Few people even pay attention.
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Watching Bloomberg TV this AM, all the talking bobbleheads are throwing Fitch under the bus! Sad.
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This was overdue. I think that until investment funds and pension funds are prevent from buying US treasuries and bonds because of degrades, those in Washington will keep their wasteful spending and tax cutting ways.
I doubt anyone in Congress or the White House even notices this little minor downgrade. I missed the announcement myself.
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Limiting who can buy US debt will do nothing to stop the political vote / campaign donation buying by our corrupt politicians.
Besides, the FED Banksters said they will be the buyer of government debt, even if no one else wants it.
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I think Standard and Poors did a similar down rating of US credit in.. 2011?
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