The first time U.S. faces threat of downgrades

Moody's Investors Service said, the U.S. debt rating will likely be lowered for the first time. There are several reasons that underlie it, such as the inability to resolve the debt until the slowdown in economic growth.

According to Moody's, the credit rating of Aaa is pinned to the United States since 1917, when this has changed with a negative outlook. Previously, on 29 July, Moody's warned that a negative outlook on the U.S. is very possible as government measures to reduce the amount of the budget cuts being negotiated to win Congressional approval for the plan to increase the U.S. debt ceiling.

There are several threats if the decline in the U.S. credit rating done. One of them, it would hit the global financial system. In fact, JPMorgan Chase & Co. estimates, downgrades debt will push up borrowing costs in the U.S. amounted to U.S. $ 100 billion per year. It can also hit the entire U.S. economy with an increase in interest home loans, car loans and other closely related to interest rates.

"The decline in ranking is a sign that Congress failed to solve the real fiscal issues," said Guy LeBas, chief fixed-income strategist at Janney Montgomery Scott LLC in Philadelphia.

The U.S. Congress increase the debt limit of U.S. $ 2.1 trillion

WASHINGTON. The U.S. Congress finally agreed to raise the U.S. debt limit of U.S. $ 2.1 trillion. In addition, the congress also agreed to slash the state budget of U.S. $ 2.4 trillion or more. This deal reached a day before the deadline threat of default occurs.

The results of the U.S. Congress voted 269-161 to pass the comparison shows the proposed congressional leaders and President Barack Obama. About 95 Democratic votes to support the debt limit increase, and 66 Republican opposed it. The results of this vote will go to the Senate for final vote and then be done today (3 / 8).

"We are facing deadlines that we must be cautious, default. Both parties should be able to resolve this mess. Both parties must work together to get out of this problem," said Representative Paul Ryan, Wisconsin Republican and chairman of the Budget Committee.

Ryan said the budget cuts associated with the increase in U.S. debt limit is a very big cultural change for the U.S. Congress.