Moody's Investors Service lowered its outlook of the nation's debt from stable to negative on Friday, saying the risks to the country's fiscal strength have increased with higher interest rates and rising debt costs.
While the United States still maintains its AAA rating, the country is one step closer to losing its perfect credit rating. The change comes as the Congress faces another deadline next week to fund the government and prevent a shutdown.
The White House blamed the change on the GOP.
"Moody's decision to change the U.S. outlook is yet another consequence of Congressional Republican extremism and dysfunction," press secretary Karine Jean-Pierre said.
In the past few months, Fitch Ratings and S&P Global -- the two other major ratings agencies -- downgraded U.S. creditworthiness in the wake of threatened government shutdowns.
I don't know if the GOP is completely to blame for this wanton fiscal irresponsibility, although a lot of these reckless philosophies can be traced back to the 1980s and the careless Pollyanna approach embraced by conservative economists. ("Don't worry, be happy.")
So, now, as could have been easily predicted, we're facing a tighter squeeze and a more uncertain economic situation.