"In the real world, the US doesn't even have a debt problem – net interest payments on the public debt are less than 1% of America's national income, or as low as they have been for more than 60 years. And the long-term deficit projections are a result of our healthcare system: if you substitute the healthcare costs of any other high-income country (or any country with a life expectancy as high as ours) in the US's budget, the long-term deficit turns into a surplus.
But Moody's wants us to be scared of the federal debt, so as to advance a rightwing agenda. But what they are doing is making a good case for serious reform of the ratings agencies."
Friday, September 14, 2012
Moody Broody Debt
From "Moody's threat to downgrade US debt is political, not fiscal":