Gov. McDonnell Flip-Flops On Debt Ceiling After Learning His State’s Credit Rating

[cal04]

GOP Gov. McDonnell Flip-Flops On Debt Ceiling After Learning His State’s Credit Rating Is At Risk
http://thinkprogress.org/economy/2011/07/21/274428/mcdonnell-debt-ceiling-flip-flop-credit/

Despite days of negotiations, House Republicans are still standing firm against increasing the federal debt ceiling, threatening the country with default unless their demands for huge spending cuts (and no tax increases) are met. Not only would failing to raise the debt ceiling do serious harm to the national economy, it would adversely impact state and local economies.

In fact, earlier this week, the credit rating agency Moody’s warned that five states — Virginia, Maryland, New Mexico, South Carolina, and Tennessee — could have their credit downgraded if the federal government’s credit rating goes down, “because their dependence on federal revenue makes them vulnerable to a U.S. credit cut.” In response, Virginia Gov. Bob McDonnell (R) urged Congress to come to a debt ceiling compromise “immediately“:

“There’s got to be a compromise, I’m not going to tell them how to do it. I’d suggest they try spending cuts — everybody knows they’re spending too much,” McDonnell said on MSNBC. “But they’ve got to get this done immediately or the uncertainty for the business community is going to be just devastating to our country.”

“It’s not going to get done without some compromise and when it’s affecting states now, it’s creating great uncertainty, there’s massive unhappiness with the federal government generally over its inability to do the basic things that government needs to do.“

[xchrom]

1. The red state tea party dilemma. Net takers of federal tax dollars. Nt

[NMDemDist2]

3. NM went for Obama by 56% n/t

[elleng]

2. Good to hear it got his attention.

Expect this kind of thing will occur in many places, but hope not too late.

[Historic NY]

4. Well he could always print his own money, like some are doing...

:evilgrin: maybe go on a state gold standard.