Fitch downgrades US credit rating from AAA to AA+

[Social Media]

 

The US government's credit rating has been downgraded following concerns over the state of the country's finances and its debt burden.

Fitch, one of three major independent agencies that assess creditworthiness, downgraded it from the top rating of AAA to AA+.

Fitch said it had noted a "steady deterioration" in governance over the last 20 years.

Treasury Secretary Janet Yellen called the downgrade "arbitrary".

It was based on "outdated data" from the period 2018 to 2020, she said.

Investors use credit ratings as a benchmark for judging how risky it is to lend money to a government. The US is usually considered a highly secure investment because of the size and relative stability of the economy.

 

However, this year saw another round of political brinkmanship over government borrowing.

In June the government succeeded in lifting the debt ceiling to $31.4 trillion (£24.6 trillion) but only after a drawn-out political battle, which threatened to push the country into defaulting on its debts.

"The rating downgrade of the United States reflects the expected fiscal deterioration over the next three years, a high and growing general government debt burden, and the erosion of governance" relative to peers, said Fitch in a statement.

 

FULL STORY

[JonnyF]

Another consequence of the decline of the US. 

 

I'm sure the usual suspects will be along shortly to claim Biden is doing great and to claim that debt has decreased during his tenure (a claim Joe himself made which has been disproved many times). 

 

https://edition.cnn.com/2023/02/17/politics/biden-economy-facts-first/index.html

 

Still, at least he's got a lovely family ????.

[placeholder]

41 minutes ago, JonnyF said:

Another consequence of the decline of the US. 

 

I'm sure the usual suspects will be along shortly to claim Biden is doing great and to claim that debt has decreased during his tenure (a claim Joe himself made which has been disproved many times). 

 

https://edition.cnn.com/2023/02/17/politics/biden-economy-facts-first/index.html

 

Still, at least he's got a lovely family ????.

 

41 minutes ago, JonnyF said:

Another consequence of the decline of the US. 

 

I'm sure the usual suspects will be along shortly to claim Biden is doing great and to claim that debt has decreased during his tenure (a claim Joe himself made which has been disproved many times). 

 

https://edition.cnn.com/2023/02/17/politics/biden-economy-facts-first/index.html

 

Still, at least he's got a lovely family ????.

Or maybe it's due to the fact that Republicans threatened not to pay the parties who held US Treasury bonds? You think the possibility of default couldn't affect America's credit rating? Really?

[EastBayRay]

49 minutes ago, placeholder said:

 

Or maybe it's due to the fact that Republicans threatened not to pay the parties who held US Treasury bonds? You think the possibility of default couldn't affect America's credit rating? Really?

Of course it’s the Republicans fault that Biden is screwing up our economy so much that he needs to raise the debt ceiling 

 

jeez you guys…

[placeholder]

5 minutes ago, EastBayRay said:

Of course it’s the Republicans fault that Biden is screwing up our economy so much that he needs to raise the debt ceiling 

 

jeez you guys…

Because the deficit wasn't rising under Trump as well? Didn't Trump's tax breaks actually greatly increase the deficit.  In fact, the last time the deficit might have shrunk maybe was briefly under Bill Clinton just before George Bush took over and showered the wealthy with tax breaks. 

[placeholder]

40 minutes ago, EastBayRay said:

Of course it’s the Republicans fault that Biden is screwing up our economy so much that he needs to raise the debt ceiling 

 

jeez you guys…

"Fitch said Tuesday that the downgrade reflects an “erosion of governance” in the U.S. relative to other top-tier economies over the past two decades, pointing to the financial uncertainty posed by a series of close calls in which legislative stalemates nearly derailed routine payments on U.S. Treasury debt, typically treated by investors around the world as ultrasafe.
“The repeated debt-limit political standoffs and last-minute resolutions have eroded confidence in fiscal management,” Fitch said."

https://archive.ph/mH4QZ#selection-335.0-339.130

https://www.wsj.com/articles/fitch-downgrades-u-s-credit-rating-56c73b89?mod=hp_lead_pos1

[Nickcage49]

As an American I wish I could disagree, but the USA is becoming a third world country.

 

There are many issues. The middle class is gone, there is rich and poor. The political situation is a mess. The country is being run by a lot of people in their 80's who are out of touch with reality and there's a strong possibility the former President and crook is coming back in 2024. Gun violence is at an all time high. And frankly, I wouldn't be surprised if an all out revolution breaks out between left and right. Nothing gets done in Washington because of the political infighting, nor in state houses. The far right is crazy and the far left has allowed bedlam to infest the cities.

 

I'm so glad I don't live there anymore. I still visit, but I find the situation very sad.

[BangkokHank]

The US is bankrupt. However, it will always be able to pay its debt because its debt is in its own currency, which it can, and does, print up at will. So while it will always be able to pay its debts, the money that it uses to pay these debts will eventually be worthless.

[koolkarl]

Thankfully they have the printing presses running 24/7.  The entire military costs and space program have always been off balance sheet.  In other words, they don't care how much they spend. US power comes from the USD being the reserve currency of the world.  Without it, they are done.  Going off the gold standard gave politicians the green light to spend at will.  Then there is Japan.  A new definition for being bankrupt.  Entire financial system is smoke and mirrors.

[KhunLA]

 ...... GO JOE GO .....

[Chomper Higgot]

Remind me, if you know without having to look it up, who controls the budget?

[Jai Dee]

An off-topic troll post has been removed.

[kingstonkid]

Quick question.

 

Why do Thais have so much debt?  Answer there is no restraint or limit on what they can borrow and rack up in debt.

 

What do the Dems in washington want to get rid of?

 

The debt ceiling that says you can go this far but then have to come ask daddy if you want more.

This is not a Dem or GOP issue they have all been doing it.  The hard truth is that they need

DAVE

 

[Trippy]

It's way past time for a balanced budget amendment. Unfortunately, the idiot politicians in DC can't stop arguing about nonsense long enough to get anything done. 

[KhunLA]

2 minutes ago, Trippy said:

It's way past time for a balanced budget amendment. Unfortunately, the idiot politicians in DC can't stop arguing about nonsense long enough to get anything done. 

Keep giving money away, and you sooner or later ... you run out.

 

Maybe all the citizens should pay their $50-60k dollars share of, what ever it is now, and free the country from debt.   Could always sell all the National Parks to CH & RU, or maybe just Alaska.   

 

Wow ... USA debt free.  Can you imagine.   One administration later, and they'd be back in debt.

[placeholder]

Tax Cuts Are Primarily Responsible for the Increasing Debt Ratio

Without the Bush and Trump tax cuts, debt as a percentage of the economy would be declining permanently...

The nation’s fiscal pictured changed in 1981 when President Ronald Reagan enacted the largest tax cut in U.S. history,⁹ reducing revenues by the equivalent of $19 trillion over a decade in today’s terms. Although Congress raised taxes¹⁰ in many of the subsequent years of the Reagan administration to claw back close to half the revenue loss,¹¹ the equivalent of $10 trillion of the president’s 1981 tax cut remained.

https://www.americanprogress.org/article/tax-cuts-are-primarily-responsible-for-the-increasing-debt-ratio/

[nauseus]

Bidenomics in action!

[nauseus]

1 hour ago, kingstonkid said:

Quick question.

 

Why do Thais have so much debt?  Answer there is no restraint or limit on what they can borrow and rack up in debt.

 

What do the Dems in washington want to get rid of?

 

The debt ceiling that says you can go this far but then have to come ask daddy if you want more.

This is not a Dem or GOP issue they have all been doing it.  The hard truth is that they need

DAVE

 

I loved this.

 

Davenomics!

[nauseus]

2 hours ago, KhunLA said:

 ...... GO JOE GO .....

Not dark enough.

[heybruce]

Read the article.  Note the part "a "steady deterioration" in governance over the last 20 years".

 

President George W. Bush started the massive debt increase during his first term when the Republicans insisted that the surplus in place after the Clinton administration was a bad thing.  Their answer, as always, was to cut taxes and increase spending.  However there is no denying that the Democrats did little to slow down deficit spending.  They saw the Republicans were not paying any noticeable price for their reckless borrow and spend policies so they did the same.

 

This one is on both parties.

[placeholder]

5 hours ago, heybruce said:

Read the article.  Note the part "a "steady deterioration" in governance over the last 20 years".

 

President George W. Bush started the massive debt increase during his first term when the Republicans insisted that the surplus in place after the Clinton administration was a bad thing.  Their answer, as always, was to cut taxes and increase spending.  However there is no denying that the Democrats did little to slow down deficit spending.  They saw the Republicans were not paying any noticeable price for their reckless borrow and spend policies so they did the same.

 

This one is on both parties.

I would dispute that it's on both parties. Keep mind that the Republicans repeatedly passed big tax cut bills with the promise that they would stimulate the economy to such an extent that they would pay for themselves. You know, the Laffer curve. (The Laugher curve?) It never happened. If just the Bush & Trump tax cuts hadn't been passed, the National Debt would be 19 trillion less in today's dollars. (Throw in the Reagan tax cuts and it's about 29 trillion less. ) In fact the ratio of  debt to GDP would have continued to decline. 

https://www.americanprogress.org/article/tax-cuts-are-primarily-responsible-for-the-increasing-debt-ratio/

[heybruce]

1 hour ago, placeholder said:

I would dispute that it's on both parties. Keep mind that the Republicans repeatedly passed big tax cut bills with the promise that they would stimulate the economy to such an extent that they would pay for themselves. You know, the Laffer curve. (The Laugher curve?) It never happened. If just the Bush & Trump tax cuts hadn't been passed, the National Debt would be 19 trillion less in today's dollars. (Throw in the Reagan tax cuts and it's about 29 trillion less. ) In fact the ratio of  debt to GDP would have continued to decline. 

https://www.americanprogress.org/article/tax-cuts-are-primarily-responsible-for-the-increasing-debt-ratio/

I agree that the Republican's tax cuts that were to be paid for by wishful thinking are the primary driver of the deficits, and that makes Republicans primarily responsible.  However I haven't seen any significant push for deficit control by the Democrats.  Neither party seems to have responsible adults in charge of budget matters.

[nauseus]

1 hour ago, placeholder said:

I would dispute that it's on both parties. Keep mind that the Republicans repeatedly passed big tax cut bills with the promise that they would stimulate the economy to such an extent that they would pay for themselves. You know, the Laffer curve. (The Laugher curve?) It never happened. If just the Bush & Trump tax cuts hadn't been passed, the National Debt would be 19 trillion less in today's dollars. (Throw in the Reagan tax cuts and it's about 29 trillion less. ) In fact the ratio of  debt to GDP would have continued to decline. 

https://www.americanprogress.org/article/tax-cuts-are-primarily-responsible-for-the-increasing-debt-ratio/

Now that's a laff.

[vandeventer]

On 8/2/2023 at 4:14 PM, KhunLA said:

 ...... GO JOE GO .....

He will never make it, as there is a large jail cell just waiting for him and his family. You do the crime you do the time.

[heybruce]

15 minutes ago, vandeventer said:

He will never make it, as there is a large jail cell just waiting for him and his family. You do the crime you do the time.

Now that's a laff.

[placeholder]

1 hour ago, nauseus said:

Now that's a laff.

Thank you for your fact-filled rebuttal. Truly impressive! Or to put it another way: you've got nothing.

[placeholder]

1 hour ago, vandeventer said:

He will never make it, as there is a large jail cell just waiting for him and his family. You do the crime you do the time.

Even Comer concedes he has no criminal evidence against Joe Biden

"Asked whether he would be able to prove the outrageous claim about the president, Mr Comer hesitated.

Pressed further by Hannity, he finally replied: “I sure hope so. And I do believe that there’s a lot of smoke and when there’s smoke, there’s fire”."

https://www.independent.co.uk/news/world/americas/us-politics/james-comer-biden-bribe-accusation-fox-news-b2386040.html

[placeholder]

2 hours ago, heybruce said:

I agree that the Republican's tax cuts that were to be paid for by wishful thinking are the primary driver of the deficits, and that makes Republicans primarily responsible.  However I haven't seen any significant push for deficit control by the Democrats.  Neither party seems to have responsible adults in charge of budget matters.

Actually Democrats did get some tax increases enacted in their budget when they controlled both houses. They would have gotten a lot more had either Manchin or Sinema supported them. Sinema balked because she wanted to protect hedge fund managers. 

[candide]

2 hours ago, vandeventer said:

He will never make it, as there is a large jail cell just waiting for him and his family. You do the crime you do the time.

Which crime?

[nauseus]

2 hours ago, placeholder said:

Thank you for your fact-filled rebuttal. Truly impressive! Or to put it another way: you've got nothing.

If you think that no tax cuts for the last few presidents mean that there would not be this high debt now then you are in dreamland.