Quote:
Originally Posted by ijusluvit
...it WILL be large enough, at least 4 trillion, to guarantee with appropriate fanfare, that S&P restore the triple A rating...
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I certainly hope that your prediction comes true. But the restoration of the AAA rating almost certainly will not. S&P was slow and judicial in finally downgrading U.S. debt. It will be equally careful in considering a upgrade.
In the past, it has taken between 9 and 18 years for sovereign states to regain their AAA rating once they had been downgraded. Arguably our financial situation would still be dire, even with a $4 trillion plan to reduce deficits. Even with that amount, the U.S. would still have annual deficits of approximately $800 billion per year, which would be added to the national debt. That means that our national debt would still be increasing at a rate of almost 6% a year, even with the $4 trillion deficit reduction plan you speak of.