Moody’s says we Aaa-ok

Moody’s said that the US govt’s Aaa rating is stable “even with a
significant deterioration in the US govt’s debt position.” They said due
to a diverse and resilient economy, strong gov’t institutions, high per
capita income, and a central position in the global economy, “Moody’s
expects that US economic strength will emerge after the crisis without
major impairment” and “the global role of the US currency also
contributes to the ability of the economy and govt finances to rebound.”
A nice way of saying the govt can print its way to paying off its debts
since the $ is the reserve currency. They said the level of debt is less
important than the US govt’s balance sheet flexibility, which is still
high. Going forward, “how the economy and fiscal policy fare after the
recession will be key and the…contingent liabilities of Social
Security and Medicare could also pressure the rating.”

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