America's AAA Rating at Risk

I remember reading that America's storied AAA rating was at risk years ago, but it seemed to have been ignored by most talking heads at the time.

Now we have an op-ed in the FT from a former Comptroller General of the United States about it. It's worth a read.

An excerpt:

For too long, the US has delayed making the tough but necessary choices needed to reverse its deteriorating financial condition. One could even argue that our government does not deserve a triple A credit rating based on our current financial condition, structural fiscal imbalances and political stalemate. The credit rating agencies have been wildly wrong before, not least with mortgage-backed securities.

How can one justify bestowing a triple A rating on an entity with an accumulated negative net worth of more than $11,000bn (€8,000bn, £7,000bn) and additional off-balance sheet obligations of $45,000bn? An entity that is set to run a $1,800bn-plus deficit for the current year and trillion dollar-plus deficits for years to come?