Grab hold of your wallet … Moody’s says: “Give the President a blank check,

CNBC reports that “Moody’s Suggests US Eliminates Debt Ceiling”

Ratings agency Moody’s on Monday suggested the United States should eliminate its statutory limit on government debt to reduce uncertainty among bond holders.

The rationale:

The United States is one of the few countries where Congress sets a ceiling on government debt  , which creates “periodic uncertainty” over the government’s ability to meet its obligation.

And, any way …

In the United States, Moody’s said the debt limit had not effectively curbed the rise in government debt because lawmakers regularly raise it and because that limit is not related to the level of expenditures approved by Congress.

Are you kidding me?

First, giving a drunken sailor an open line of credit at the booze store makes no sense at all.  I have zero confidence that the Feds will show any fiscal restraint ever.  The debt ceiling at least helps to protect them from themselves.

Second, isn’t this the same Moody’s that rated sub-prime mortgage backed securities AAA …  right up to the meltdown?  Does anybody take these jabrones seriously any more?

Third, isn’t Warren Buffett one of Moody’s owners?  Why doesn’t he just turn his personal fortune over to the Treasury if he thinks the spending binge should continue.  It would give Obama some walking around money and shut Buffett up re: his strong desire to pay higher taxes.


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