How Can the US Get Back its AAA Rating? | NewsyStocks.com - 0 views
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Banksters S&P-downgrade USA-downgrade financial-collapse Obammunism
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First among the recommendations of S&P 500, it expects the US government to get the federal debt down to around 60 percent or 65 percent of GDP, which has been historically around 40 percent.
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S&P wants the US to generate enough savings from its debt deal to stabilize the national debt so that it will no longer
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The government requires at least $4 trillion to $5 trillion in savings over the next 10 years to achieve the debt target.
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ncreases in entitlement costs cannot be sustained alone by the current tax collections for programs like Social S
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budget cuts alone are not enough to reduce deficits. So taxes have to be increased to add revenue to the Treasury.
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A cap on spending would act as sort of a stopgap preventing lawmakers from letting party politics put a blockade in the way on necessary steps towards the economic recovery of the US.
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S&P wants the US to generate enough savings from its debt deal to stabilize the national debt so that it will no longer continue to grow faster than the economy. Its concerns were divided into two categories. First, the Americans are growing old and the consequent increases in entitlement costs cannot be sustained alone by the current tax collections for programs like Social Security. So, the government needs to create a framework to address the costs of an aging American population. This could require an increase in the age limit at which Social Security and Medicare Benefits could be accessed and to exclude those people who have savings or jobs from both of these programs. The other crucial area of concerns highlighted by S&P is that budget cuts alone are not enough to reduce deficits. So taxes have to be increased to add revenue to the Treasury. While increasing revenue and cutting spending will help in reducing the deficit and help in balancing the budget. A cap on spending would act as sort of a stopgap preventing lawmakers from letting party politics put a blockade in the way on necessary steps towards the economic recovery of the US. Analysts believe that the US needs to compromise on its defence budget also, which still supports large deployments of armed forces and material overseas. The US has commitments to NATO in Afghanistan and Iraq, and the federal government believes that it needs to support strategic initiatives in place like Japan. The government has to take strong steps in its policy towards these obligations to put the country's economy back on track. The US owes maximum of its debt to China. So the Congress needs to put pressure on the Chinese government to alter the value of its currency to make the trade between the two countries fair. Furthermore, cheap goods exported by China have caused a loss of manufacturing jobs in the US, so the latter should place tariffs on more Chinese goods as a way to raise money and prevent dumping of pro