Moody's Investor Services is sending out a pretty clear rejection of Mitch McConnell's "Pontius Pilate Pass the Buck Act of 2011."
Republicans and Democrats who are spinning it in favor of folding like a cheap suit and just raising the debt ceiling should pay attention.
According to Moody's,
“the outlook assigned at that time to the government bond rating would very likely be changed to negative at the conclusion of the review unless substantial and credible agreement is achieved on a budget that includes long-term deficit reduction. To retain a stable outlook, such an agreement should include a deficit trajectory that leads to stabilization and then decline in the ratios of federal government debt to GDP and debt to revenue beginning within the next few years.”
That is directly opposite of the McConnell plan, which would let President Obama raise the debt ceiling by $2 trillion automatically over the next year.
It does, however, make a strong case for a Balanced Budget Amendment, something both Mitch McConnell and Barack Obama are rejecting. A Balanced Budget Amendment, particularly the Lee-Cornyn-Hatch BBA proposal, would require expenditures equal revenue within five years of passage.
It also, incidentally, makes the case for Paul Ryan's plan, which would present a clear path to a balanced budget over time, though longer than I'd like.
Oh, Mister Speaker, if you are paying attention, Cut, Cap, and Balance would meet Moody's test too.