With the chances of Congress reaching an agreement on raising the debt ceiling uncertain, politicians, economists, and members of the business community continue to fear a "doomsday scenario" in which the United States defaults on its debt on August 2. Among the economic catastrophes predicted to occur is the possibility that the U.S. will see its credit downgraded, losing its AAA credit rating for what is being said to be the first time in history. But what exactly is a AAA credit rating, and is it really so important for the nation to have one?
Felix Salmon, finance blogger at Reuters, advocates for ending the AAA credit rating. Credit assessment field consultant Marc Joffe, says that the U.S. has defaulted on its debt before, and doesn't understand the political pressure to say that it has not. He wrote about this in his blog post, "Correction: The U.S. Has Defaulted Before and It Can Default Again."