My newest Fox News piece starts this way
If you think it's hard now to balance the budget, just wait until our credit rating gets trashed. Monday’s warning from the Standard & Poor’s rating agency -- that the U.S. government’s credit rating could be revised downward -- produced a firestorm in Washington. Republicans called it a "wake-up call," while the Obama administration's chief economist, Austan Goolsbee, lambasted Standard & Poor’s actions as purely "political."
Credit ratings aren’t just a matter of national pride. Less dependable, risky borrowers have to pay a higher interest rate to get people to buy their bonds. Right now the our government only has to pay 3.4% annual interest to borrow money for 10 years. But for countries who have had trouble paying their debts, interest rates are much higher. Portugal is forced to pay 9.1%, Ireland 9.8%, and Greece 14.6%.
But America's financial problems are catching up to what these other countries face all too quickly. . . .
Labels: deficits, foxnews, Op-ed