Link to the S&P announcement here.
Others within the MMT paradigm have pointed out that perhaps S&P should downgrade the US rating due to the fact that intransigent deficit reduction fetishists operating within the government often push the US Treasury to the brink of default at the times when the US reaches the so-called "debt" ceiling; and therefore, for a lack of effective willingness to pay, the US perhaps could receive a downgrade. Here is S&P on this:
The political brinksmanship of recent months highlights what we see as America's governance and policymaking becoming less stable, less effective, and less predictable than what we previously believed. The statutory debt ceiling and the threat of default have become political bargaining chips in the debate over fiscal policy.So you can see S&P comes close to a realization of this concept of willingness here, pointing out the reckless behavior of those in government around the "debt" ceiling issue. But close is all we get from them, S&P then goes full moron:
Despite this year's wide-ranging debate, in our view, the differences between political parties have proven to be extraordinarily difficult to bridge, and, as we see it, the resulting agreement fell well short of the comprehensive fiscal consolidation program that some proponents had envisaged until quite recently. Republicans and Democrats have only been able to agree to relatively modest savings on discretionary spending while delegating to the Select Committee decisions on more comprehensive measures.Too bad they cannot see that with the US Treasury, "willingness to pay" is the only issue. Look for this ratings issue to be a major topic in the financial media next week.
Aside: You know, all of this when we have troops in the field in harms way getting shot at everyday. This garbage from S&P and then the previous statements from PIMCO's Gross (remember "who will buy them now?"). What would people have thought of these types of statements and actions during WW2 when the Treasury was selling "war bonds"? To me it is the same thing.