Ron Paul's Predictions

[Big_Bill]

Originally Posted by David Newman

We transfer money back to reserve accounts on a daily basis + interest and there is no reason why we couldn't do so for eternity. There is no threat of involuntary insolvency in our monetary system. If we ever became insolvent, it would be purely voluntary.

If this were true, the United States would not have lost its AAA credit rating.
Due to concerns over our almost 15 Trillion Dollars of Debt, soon to be 15.5 Trillion Dollars in Debt, it was determined that we were not as credit worthy as other Governments. This action will cost every tax payer money, as the Government will need to pay higher interest rates for the monies that it borrowes.


(Reuters) - The United States lost its top-tier AAA credit rating from Standard & Poor's on Friday in an unprecedented blow to the world's largest economy in the wake of a political battle that took the country to the brink of default.

S&P cut the long-term U.S. credit rating by one notch to AA-plus on concerns about the government's budget deficit and rising debt burden. The action is likely to eventually raise borrowing costs for the American government, companies and consumers.

"The downgrade reflects our opinion that the fiscal consolidation plan that Congress and the Administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government's medium-term debt dynamics," S&P said in a statement.



Bill