The ratings agencies are a bunch of frauds but unfortunately they still carry weight when it comes to debt payment rates. The GOP wants to play games and the ratings agencies are not impressed. As they did during the bailout, the Republicans are scaring the heck out of the market. They're trying to make a point but the only point that Americans will see is even higher costs to fund the government. Great plan guys.
"The Weiss ratings is very close to downgrading the sovereign debt of the United States one more notch to a 'C-', which will put it just one notch above junk," Martin Weiss, President of Weiss Ratings told CNBC on Thursday.
In April, Weiss Ratings gave the U.S. sovereign debt rating a 'C'.
Moody's warning came as the White House and President Barack Obama are locked in tense negotiations to raise the $14.3 trillion debt ceiling by August 2 or risk a default. Fed chairman Ben Bernanke has told a U.S. House of Representatives panel that failure to increase the ceiling will immediately cut government spending by 40 percent.
