America's Cratering Economy - by Stephen Lendman
Slow-motion fiscal collapse perhaps explains its current state after decades of mismanagement, accelerated under Bush and Obama. The chickens are now coming home to roost big time, hitting ordinary people hardest, suffering under a protracted Main Street Depression. More on that below.
Last April 18, Standard & Poor (S & P) downgraded its rating on America to negative, saying:
S & P "affirmed its 'AAA' long-term and 'A-1+' short-term sovereign credit ratings on the US. (It also) revised its outlook on the long-term rating of the US sovereign to negative from stable....(W)e now believe (US strengths may) not fully offset the credit risks over the next two years at the 'AAA' level...."
"More than two years after the beginning of the recent crisis, US policymakers have still not agreed on how to reverse recent fiscal deterioration or address longer-term fiscal pressures."
S & P analyst Nikola Swann added that from 2003 - 2008, US debt ranged from 2 - 5% of GDP. However, it ballooned to over 11% in 2009 "and has yet to recover."
Swann also warned of "a one in three chance that the US could lose its AAA rating in two years because of its mounting debt."
S & P's entire statement can be accessed through the following link: