Fitch Downgrades US Debt

https://www.bbc.com/news/business-66379366

by etothepii • 3 years ago

48 6 3 years ago

mikece• 3 years ago

Until the “full faith and credit of the US Government” — the US Military — defaults we won’t have any problems selling our debt.

Sadly, that time is almost at hand.

thghtihadanacct• 3 years ago

I can imagine I know what youre saying ... no one wants to join the military anymore and no one can blame them. I think, however, automation will take over in the war industry long before it takes over coffee shops. The money the US pours into killing machines will be steady for a long time. US just needs fewer people to do it now. OTOH, I know few US workers that arent trying to produce and live a better life. The US will always have solid output despite the wealthy few futzing around with everything trying to create another slump to buy everything up.

missedthecue• 3 years ago

What does this actually mean in practical terms. The military is going to invade Japan if they pare back investments in US bonds?

1letterunixname• 3 years ago

This will lead to further capital and capital reserve exodus from the dollar, and with it, adding slightly to inflation.

Note that the current economic cycle is akin to the Carter admin of the late 70's, while 2/3 of inflation was a result of supply-side profit-price spiral. The very rich did extremely well during and post pandemic, while everyone else was stuck with the "check".

personomas• 3 years ago

The downgrades seems accurate to me. With how unstable the world is, I don't think any entity should have AAA rating. The US I agree also has severe "deterioration of governance" in my opinion.

What I find despicable is that Yellen ignores all of this and calls the downgrade "arbitrary". This is a slap in the face to the credibility of independence of the credit agency when the residing US Treasury Secretary tries to impose her opinion to deflate the agencies move.

Standard & Poor's downgrades its rating of the US credit rating from AAA to AA+ 10 years ago. And it's still at that.

jaeyson• 3 years ago

inevitable.

Fitch Downgrades US Debt

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