tag:blogger.com,1999:blog-3782644139927778760.post-2733546313796280012008-04-15T02:04:00.000-04:002008-04-15T02:04:00.000-04:002008-04-15T02:04:00.000-04:00We <A HREF="http://feeds.feedburner.com/~r/NakedCapitalism/~3/214802537/links-and-quick-takes-11108.html" REL="nofollow">addressed that</A> when the story ran:<BR/><BR/><I> Oof, if this isn't politically influenced, I don't know what is. Moody's says the US risks a downgrade on its debt rating unless it does something about its "social security and healthcare" spending. <BR/><BR/>First, everyone who has looked at the data says Social Security is not the problem. And even if it gets worse, some very minor fixes (raising the ceiling on payroll tax liability) will take care of it. The big problem is Medicare, and that in turn results not from demographic change, but from out of control health care costs. In other words, the answer is health care reform, not cutting entitlements. But you'd believe the reverse if you read Moody's.<BR/><BR/>And why does the report not mention the fiscal sinkhole called Iraq?</I>Yves Smithhttp://www.blogger.com/profile/03506020285476330865noreply@blogger.com