Why the U.S. Should Be Downgraded

10/16/2013 10:34AM

Even if a debt deal emerges soon, the drawn-out budget battle will at the least ding the reputation of the U.S. and its government. As a result, the U.S. should not be rated triple-A anymore, Michael Casey says. Photo: Getty Images.

This transcript has been automatically generated and may not be 100% accurate.

... in due ... all he is betting heavily ... a Washington will finally get around to agreeing on a budget and avoid the potential debt default ... however ... the strong the budget battle will it lead in the reputation of the US the ... certainly ... and its government in fact our first guest says ... the Lord conclusion from this debt drama ... the U S should not be rated AAA anymore my Casey ... horizons columnist for my need be ... a strong statement Mr. it is our money to it if it's fifty decided that I knew it sits in the day in addition to spot because two years ago right ... but close to them the majority of of ... the three big readings as the Basilan ... of the Swans ... to give us a triple a and ... and and that reading has traditionally been built upon two factors one costing the debt numbers which not all that going on and on the state gross debt to GDP ... but they have a good counterbalance factors with all this is to shoot will strengthen the U S has ... it's kind of commitment to the foreplay from prison instead it's ... built around the idea that has a reserve currency everything else ... well when just out looking at that second pot any anyway in that his reputation the rest of the political system that put the suspicions that on that thing ... is to be staying ... ultimately the current of ... dysfunction that we've seen ... is I think ... causing a great loss of confidence in a state which ultimately undermines polls that were ... the earliest time I don't doubt that we can pay our bills the United States only was the money ... that's not the issue ... well one thing we haven't coming in it's a pretty ... decent point he said ... AAA rated sovereigns don't ask I mean in that sense into what I was in a better rating is a rating is a relative concept is critically important weekend it was a triple I so we hope you can pay the bills that apply for a double agent isn't a single edged up into the bills as well ... to do with the highest rating possible said we need it to real concert to see if they don't compare to other countries the stock around the well then the other two boys are out there ... and I did this this appeal quizzes US artist rendering it is not enough good idea for a bit of coast ride as a very good reputation for Number reasons ... that built a massive stockpile of political Superannuation dominant on defense and also Sozzi Creek Robins that I know the way ... they have these independent body that looks up that ... another aspect of budget that in Norway which has this institutionalize sovereign wealth fund that the soft soil this money for years on intimate buzz buzz buzz and it has a hundred and fifty proceed asset to GDP no didn't also the other side of the Ledger ... I'm any good Germany which of course it does decide the calm ... he noted that the goods numbers on as good as those two countries but that it's it's it's got this compromise in capacity which means that I'm that cool ... just recently when he licks the most she has to form a grand coalition cover with the arch rivals and no one doubts is condemned because they don't understand it this is how the system was to Jimmy the two rivals come together to form a government so ... it's imperative that what's been happening in Washington even if you really do we deserve to be in that league ...