Last week, Moody's Investor Service became the first of the big three rating agency's to put the United States' credit rating on watch for possible downgrade. Today, it suggests that the country should save itself further headaches by getting rid of the debt ceiling altogether.
Reuters reports that the United States is one of the few countries in the world that sets a debt ceiling. The Congressional Research service provides a bit of history on how it came to be in this paper. The short of it is that some form of a debt ceiling has existed since 1917, after the passing of the Second Liberty Bond Act, which helped finance U.S. involvement in World War I.
Perhaps all Americans should band together and declare themselves a "foreign" country, estranged from politicians. Then apply for foreign aid and entitlements which they do not now receive. Screw the budget and debt limit; we're not from the politicians country because we're now foreigners.
I don't think the various US rating agencies have the balls to actually downgrade US debt even if it should be. Yeah their just the messenger bla bla bla but if their downgrade is the beginning of the end, it will be the end of the beginning for the agencies. (Thanks Winston)
They don't want to be in the business of politics. To put in other words, they joined the crowd of people who want it to be someone else's false. You gotta feel for them a little bit: they know everyone shoots the messenger.