As we all know by now, raising the ceiling allows us to spend more but it doesn't fix the underlying problem of American's national debt. America needs to get a grip reducing the debt. If Congress doesn't find a solution by August 2nd to raise the debt ceiling in exchange for financial responsibility, we won't like the consequences.
Moody's and other credit rating companies have been threatening to reduce America's credit rating for a long time now if we don't get a grip on reducing our national debt. They warned us that it would reduce our credit rating back in January of 2011 and repeated their threat a month ago. They just issued another warning almost two weeks ago on July 13 in which they will look to see if they will make a downgrade in our credit rating. Moody's isn't the only credit rating that is threatening to reduce our credit rating. Fitch made a similar threat a week ago.
These credit rating companies might actually follow through with their threats. The downgrade in our credit rating my happen as early as this upcoming Friday. If that happens, it would be bad news for America.
Despite these repeated warnings, the Obama administration is trying to ignore them. The reason why these credit rating companies are considering a downgrade is because of the way our government spends our money:
That is why we need to either pass the balanced budget amendment because we need a permanent solution to our deficit problem that forces Congress to spend the tax payer's money wisely. If we don't, the consequences won't just be a down grade in our credit rating, but America's light on a hill will have grown dimmer.