Posted on 11/10/2023 5:39:25 PM PST by ChicagoConservative27
Moody’s on Friday changed its outlook on the US credit rating to “negative” from “stable” citing large fiscal deficits and a decline in debt affordability.
The move follows a rating downgrade of the sovereign by another rating agency, Fitch, earlier this year, which came after months of political brinkmanship around the US debt ceiling.
(Excerpt) Read more at nypost.com ...
“months of political brinkmanship”
My ass. That’s the least of our worries. 70 years of out-of-control Congresses buying votes is the problem. We passed $1 trillion in debt around 1988. Today it’s $34 trillion — THIRTY FOUR TIMES higher. We are paying $1 trillion in interest every year for the first time in the nation’s history.
Economic collapse is around the corner.
What I remember is that some time ago one the credit agency down graded the US and took away their AAA rating.
“Moody’s expects federal interest payments relative to revenue and GDP to rise to around 26% and 4.5% by 2033, respectively, from 9.7% and 1.9% in 2022.“
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Lifted from another source, but that sentence should send chills down the spines of everyone relying on government money to live.
The interest cost is going from 9.7% of revenues to 26%.
It’s going to be difficult to recover from that without massive tax increases or massive money printing. Both of which would destroy our economy.
Biden isn’t fixing this. Trump isn’t going to fix this. Anyone who thinks that is delusional, or they are not paying attention. The entire legislative and executive branches of our government must be overhauled and changed. We cannot use “business as usual” to fix this.
Whaddya know. Last time the credit rating dropped it was under Obama. Now Biden. Hey! They are both Democrats! Think there is a connection?
“Don’t Cry for Me, Argentina”, with Madonna
https://www.youtube.com/watch?v=KD_1Z8iUDho
Who will be our Peron?
These massive deficits in spending every year, by every president of late, has kept the system barely functioning. The only 'growth' we get now has been massive deficits and debt, and Republican and Democrat voters show no interest in stopping that spending.
Perhaps that’s the only time the gop act like there is a problem and try doing a shutdown. They don’t care any other time, look at the Trump and Bush spending under them.
That would be Fitch, I believe.
At this rate Operation Cloward & Piven should be complete in the very near future.
The forty year USD high is $120, which we hit in 1999, which is the last time the USA federal budget had more income than spending, probably since the 1960s.
Anyway - my point is that professional currency traders - who have their own money or jobs at risk - seem to be much more confident about the value of the USD than the credit rating agencies do.
Well, the credit rating looks forward. It depends on ability to pay, and the future change on rates. A 10 year bond at 5 % isn’t a good deal if a year from now it’s 7%. Also, if the lender defaults on all or part, that would be bad as well.
Soon China will be left holding the bag of worthless IOUs.
https://www.thebalancemoney.com/who-owns-the-u-s-national-debt-3306124
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