NEW YORK (Reuters) - Fitch Ratings on Friday affirmed the United States' top level credit rating at AAA but held the outlook at negative, saying still-elevated debt levels leave the country vulnerable to shocks without more deficit reduction."
1. The U.S. currently has exceeded the official debt ceiling and our gifted Treasury Secretary is raiding and manipulating government accounts to pay ongoing expenses. Congress has been told the manipulation can last until October before they must act (or a default will occur). Something tells me they will have to act sooner than that as they are relying on extremely rosy projections of falling expenses and rising tax collections.
2. The Federal Reserve can't take it'"s foot off the $85 billion/month QE gas pedal or interest rates on the federal debt expense will be blown out the window adding to growing federal deficits.
3. Approximately 6 months ago the Congressional Budget Office CBO) revised it's annual budget forecast lowering it in the current fiscal year to a mere $660 shortfall. Unfortunately, in two weeks we will likely see the federal deficit exceed $700 billion (June's monthly federal budget figure due for release) with 3 more months to go in the fiscal year. Oops.... CBO got it wrong again. That reduction from $trillion dollar deficits to $660 billion sounded so sweet when announced several months back!
And with such stellar budget planning, spending beyond our credit card limit, and continued phony financing by the Federal Reserve....the U.S. deserves a triple A rating by Fitch. Does Fitch collect a paycheck for this outstanding work? Go figure!