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Bad news for the GOPTea party and their debt fetish: the debt ceiling deadline keeps receding as a revived economy results in falling debt and increased revenues. Currently it doesn't even have to be considered until September, which is almost at the end of the fiscal year.
With this development, the conservatives can't hold America hostage any longer. It's a bad day to be have a debt fetish. What new pseudo-issue will the conservatives have to create to replace this one?
S&P Upgrades US Outlook From Negative To Stable On "Receding Fiscal Risks" | Zero Hedge
Standard and Poors Delivers Bad News For GOP -- The Economy Is Stabilizing Debt, Just As The Keynesians Predicted.
With this development, the conservatives can't hold America hostage any longer. It's a bad day to be have a debt fetish. What new pseudo-issue will the conservatives have to create to replace this one?
S&P Upgrades US Outlook From Negative To Stable On "Receding Fiscal Risks" | Zero Hedge
Standard and Poors Delivers Bad News For GOP -- The Economy Is Stabilizing Debt, Just As The Keynesians Predicted.
Aside from tax hikes and expenditure cuts, stronger-than-expected private-sector contributions to economic growth, combined with increased remittances to the government by the government-sponsored enterprises Fannie Mae and Freddie Mac (reflecting some recovery in the housing market), have led the Congressional Budget Office (CBO), last month, to revise down its estimates for future government deficits. Combining CBO's projections with our own somewhat more cautious economic forecast and our expectations for the state-and-local sector, and adding non-deficit contributions to government borrowing requirements (such as student loans) leads us to expect the U.S. general government deficit plus non-deficit borrowing requirements to fall to about 6% of GDP this year (down from 7%, in 2012) and to just less than 4% in 2015. We now see net general government debt as a share of GDP staying broadly stable for the next few years at around 84%, which, if it occurs, would allow policymakers some additional time to take steps to address pent-up age-related spending pressures.
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We do not see material risks to our favorable view of the flexibility and efficacy of U.S. monetary policy. We believe the U.S. economic performance will match or exceed its peers' in the coming years. We forecast that the external position of the U.S. on a flow basis will not deteriorate.