Other than the U.S. having to pay higher interest rates on the national debt, what are the significant, immediate effects of this action on the country and on we, the people?
Thank you, in advance for any information.
That is the original effect. From it a come the necessity of truly reducing real spending in order to keep from adding to the Debt at a much higher rate. If we continue to spend at the same rate with higher interest rates then the rates will go yet higher as the "rating" is downgraded further. It simply is the next leg up on Collapse because the political class WILL NOT rein in real spending. No departments will be eliminated, etc. If we do cut spending sufficient that we seem to be paying off a tiny corner of the Debt it will make no difference in the not very long run because all those Departments and Agencies and Bureaus will still be there. It is like Fat cells in your body. As you stuff yourself unto obesity your body creates additional fat cells. As you seriously diet and exercise and lose weight those fat cells get smaller and you appear to be thinner but you have all those extra fat cells and you can't get rid of them without Surgery. As soon as you relax your diet-and-exercise regimen those fat cells grow back and more new ones are created to ride along with them.