Posted on 11/11/2023 5:29:34 AM PST by MtnClimber
The Biden administration rejected the Moody's downgrade, with Treasury officials insisting the U.S. economy is thriving.
Moody's Investor Service on Friday downgraded its outlook for the U.S. to "negative" from "stable" while maintaining the nation's AAA credit rating.
"In the context of higher interest rates, without effective fiscal policy measures to reduce government spending or increase revenues, Moody's expects that the US' fiscal deficits will remain very large, significantly weakening debt affordability," the service announced. "Continued political polarization within US Congress raises the risk that successive governments will not be able to reach consensus on a fiscal plan to slow the decline in debt affordability."
Moody's asserted that the nation's "exceptional economic strength" and potential for positive growth could at least slow the mounting cost of maintaining its debt. It further insisted the maintained prominence of the dollar in global markets would mitigate risks.
"While the adjustment of the US economy and financial sector to higher-for-longer interest rates is underway, policymakers have facilitated the transition through transparent and effective policy," the service added. "Finally, the unique and central roles of the US dollar and Treasury bond market in the global financial system provide extraordinary funding capacity and significantly reduce the risk of a sudden spiraling of funding costs, which is particularly relevant in the context of high debt levels and weakening debt affordability."
While Moody's declined to downgrade the U.S. credit rating, other firms have already done so. Fitch Ratings, in August, assigned the U.S. a "stable" outlook rating, but dropped the nation's credit from AAA to AA+. S&P Global made the same downgrade in 2011.
(Excerpt) Read more at justthenews.com ...
To be fair, Trump and the Republicans essentially shut down the economy and then started pumping free money into the economy which began this whole mess.
Even though we have a sour economy, the Deep State will never permit a major economic disaster prior to the 2024 election.
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I agree. They can count on the Fed to do whatever it takes to prop it all up. And by that I mean all options will be on the table when it comes to defending the entrenched elites.
Moody’s:
“transparent and effective policy”
That is their version of “safe and effective”.
Lol.
No one - not Trump, not the GOPe, not the Democrats - seems to care about deficit spending in the least. If nothing else destroys us, deficit spending will.
Of course the economy is thriving
The more money the government creates the better!
All of that created money goes to Joe’s cronies and what could be better than that??
“so the spenders have improved their game considerably since then”
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The debt is disgracefully bad to be sure, but our Unfunded Liabilities are 6 times what the debt is!
I’m not buying squat. Having said that, you are right...travel on truck-infested I-81 is a risky venture...especially with all those new drivers walking over the border.
Why should they? They keep winning elections. Obviously the American people must think it’s fine. Dummies!
We’ll see what the tbill rates are this coming week.
5.4% now - maybe 5.5% or higher?
Mortgage rates will go up as well.
Don’t worry the Biden administration rejected reality.
Yes. This is very important to understand. The current destruction of the USA is part of a plan. The destruction of the USA is the objective. Understand that, and everything else falls into place. The useful idiots out there who cannot understand this are the most dangerous impediment to those of us who want to foil this evil plan and save America.
Virginia has been talking about widening I-81 for over 20 years now.
In Virginia, though, the politician’s lips move a lot more than dirt does.
.
Okay.
But let's wait and see what it looks like after the Christmas season in over.
You are correct. Whenever there is a true economic downturn, the trucks almost disappear.
As long as it is Pedo Joe and his Dung Beetle Party doing the spending like a bunch of drunken pirates, I guess it’s okay. This would be the headline on every “newspaper” on the planet if a Republican was president.
Those FBI midnight raiders are very reminiscent of the “good old boys” in their white sheets riding horses and carrying torches.
Fiscal policy that undermines monetary policy is a recipe for collapse.
“Fiscal policy”
“Monetary policy”
That is the academic trick of making it sound so dry and impersonal.
Evil people are clubbing baby seals here!
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