Posted on 08/03/2023 7:21:11 AM PDT by SeekAndFind
See also: US credit rating sinks as national debt increases
When Fitch, the securities ratings agency, downgraded US sovereign debt, it was a huge story in the financial world. The Wall Street Journal’s initial coverage noted that it was:
…clouding the outlook for the $25 trillion global market for Treasurys. Fitch’s rating on the U.S. now stands at “AA+”, or one notch below the top “AAA” grade.
America’s reputation for reliably making good on its IOUs has cast Treasury bonds in an indispensable role in global markets: a safe-haven security offering nearly risk-free returns. Treasurys serve as a critical benchmark for returns on stocks and other bonds, because investors generally demand greater yields on any other securities that they buy.
They also somehow essentially blamed Republicans for trying to negotiate spending restraints before increasing the debt ceiling. This makes it appear that if Republicans just caved and we had unlimited debt and unlimited spending and high taxes that everything would be OK.
What could go wrong? Fitch, like other ratings agencies, make huge amounts of money rating government debt from the US, states, cities, and agencies like Fannie and Freddie. Never forget that their income goes up if the government borrows more.
There was absolutely no threat that the U.S government was going to default, no matter how many times the public was fed that talking point.
Why would anyone trust the ratings of Moody's, Standard & Poor's and Fitch when they contributed so much to the economic collapse in 2008 by giving junk mortgages great ratings in 2006 and 2007?
(Excerpt) Read more at americanthinker.com ...
Well. DUH!
Let’s go Brandon!
In cahoots
Why downgrade now?
Maybe so they can bump it back up to AAA when the election comes down to the wire. “See! Bidenomics, people!”
The rating is relative. We still have the best crappiest money in the world.
1) the market does correct itself even under socialism/facism.
2) In our lifetime a major world power went bankrupt. What can we learn from history?
Of course Fitch blamed J6 and debt negotiations. The United States has a fascist government and a fascist political system. Businesses can only operate here if they stay in the good graces of our fascist government rulers.
This was the propaganda line they were told to say by our government…they say this then all is fine and they can continue to exist. They tell the truth about it, they cease to exist. That’s America…that’s how America operates.
It’s very hard to get true conservatives to understand . . . conservatism.
It has nothing to do with isms. Certainly not capitalism. Nor socialism. Nor Communism. All those isms get measured by a substance created from nothing on a Federal Reserve whim.
How can such a substance define ideology? It can’t.
But if you want the truth of the math, you can’t cut spending. Gov’t spending is all that drives the economy now. The G variable is explicitly in the GDP equation. Cut it, you cut GDP. Cut GDP and the debt/GDP ratio explodes — even worse than it is.
Cutting spending therefore won’t help. Cutting (or raising) taxes won’t help, either.
It’s all too late. Capitalism has failed. You can wriggle around and point ideologically to some happening in the 1980s or 1990s or whenever, but in terms of visibility, it was when QE got defined in 2009. That’s when money creation (from nothingness) really became clearly the only engine behind the economy.
It’s not going to get better. Ever.
“It’s not going to get better. Ever.”
Reindustrialization and other reforms would improve matters.
Crony capitalism is still working for some.
Truth hurts. I did a math exercise on the government cash equivalent retirement benefits I receive over and above my individual and former employer contributions. In eight years I have scored $500K more in benefits than taxes were ever paid in my behalf. I do not know if I should be ashamed or brag. That said, there are no fiscal conservatives in the GOP, including Trump.
I probably didn’t make my point because it is the most difficult to grasp.
The substance from nothingness is money. It’s not physics. It’s not measurable laws. It’s laws of supply and demand, trying to make a substance created on a whim from nothingness conform to a “law”. It is absurd to expect it.
This is why all the isms are meaningless.
We use money. This leads guys to presume it must mean something.
But it can’t. It came from nothingness on a whim.
Taxes and spending cannot be in any way a measure of conservatism — which, btw, is another ism.
👍👍👍👍👍
The Fitch analyst that made this report has probably been fired and erased from all company records as if he/she or it never existed.
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