Fitch downgrades US credit rating from AAA+ to AA+. Is this a problem? ?

[exitseven]

Their main reason they cited for them doing this was "erosion of governance" and "rising government deficits".

Thanks Joe.

[razelove]

It's a symptom, not the problem. Hmm, here's the best example of one of the causes, rather than a symptom. We ramped up spending like crazy for COVID, but we're still spending at the same level though COVID is over as a pandemic.

We started a war that can't be won with Russia, so on and so forth. I'm not just blaming Democrats, though they are the most vocal on those causes, Republicans are pushing along those agendas too. You can count the politicians treating debt as a serious issue on both hands.

[Soteris]

Meh, I have predicted the downward spiral of USA for years and years already. Glad to see Fitch is catching on.

[Agagagagaga]

Funny because I predict the same for Sweden. It’s been fun to see how rampant runaway immigration of people from war zones in the Middle East has resulted in police officers getting killed and the occasional hand grenade being lobbed into a police car. Oh and the way they throw rocks at your cop cars as they drive down the streets in what were once Swedish neighborhoods? Priceless. 😉

[exitseven]

@Agagagagaga it seems like the insanity is not just in the US.

[Soteris]

@Agagagagaga Well that is all news to me. Good that you are saying informed I guess.

[provokeesmokee]

Lmao, America's credit is shit. They'll never pay back their debts.

The only reason America is seen as a financial powerhouse is because the USD is the global reserve currency.

But that's falling apart now.

America's been near default every President for the last three terms. Shut downs have loomed more and more often.

Personally, I have as much faith in the American financial system as I do a 2008 mortgage broker.

[DubiousIntentions]

Wait a minute. If I owed a million dollars, my credit rating would be lower than a snake's ass in a wagon rut. So how does the US who owes more money than any other country on Earth have any credit at all?

[AngryCarl2]

Let me ask you a question. Can you print your own banknotes?

[DubiousIntentions]

@AngryCarl2 That makes money all the more worthless. Inflation in Germany post WWII made the Mark pretty much worthless. I had some German postage stamps that had 1 million Marks as it's value. One million Marks just to mail a letter. The US helped them rebuild their economy, yet we can't rebuild our own. We are too busy dishing out money to everyone but our own.

[Red_Arrow]

"Erosion of governance" and "rising government deficits" were definitely mentioned. But that was not due to Biden. In a meeting with Biden administration officials, representatives from Fitch Ratings repeatedly highlighted the January 6th insurrection as a significant concern as it relates to US governance. And that is on Trump. Also of concern was lawmakers negotiating till the last minute on a debt ceiling deal earlier this year, risking the nation’s first default. The GOP was attempting to make cuts in the military (even for the GOP that was a true debacle and we still are having deficits in military leadership) as well as in Social Security and Medicare, and at the same time trying to extend more plum deals to make Republicans rich off Americans. So you can remove Biden's picture and replace it with Trump!

[Drewtate]

Lol back to the Jan 6th thing lol

[exitseven]

Jan 6th is a concern but not the reason you think. The erosion of governance is when an opposing political candidate can be put in jail for expressing his opinion. Why do you think that this was released today? Companies like Fitch do not take years to determine these ratings. They are done quickly to reflect current trennds, not ancient history.

[Drewtate]

Well that is very true. Its something that happens in dictatorships. It's like if banks refuse you because of your political or religious beliefs.

[exitseven]

@Drewtate If you think we are living in a dictatorship, you are correct t

[Agagagagaga]

Aaaaand we’re back to January 6th...

🤦‍♂️

[Red_Arrow]

Erosion of governance is not "when an opposing political candidate can be put in jail for expressing his opinion". It is when an entity has a lessened power when compared to peers, in this case other countries. And it is not just current trends. Fitch looked at the last two decades as the US faced REPEATED debt limit standoffs.

[Red_Arrow]

@Agagagagaga We were never away from January 6th. Trump and his allies spread lies that they knew were false about who won the election, about voting machines switching votes, about local officials destroying valid votes. With all the proof coming out as to what the truth really was, Trump set up Jan 6 to incite violence. He had them attacking the Capitol, attacking the Vice President who was doing his job of verification honestly, attacking Congress, attacking Capitol police. Right now many who listened to him are rotting in jail and many people, innocent and guilty, were killed that day or from wounds received then. Trump knew the violence would happen because that is what he was intending to allow him to seize power he knew had lost. This long after, more of his accomplices are admitting the crimes they committed. Giuliani just recently admitted many of his lies were lies and it is likely he will be permanently disbarred. New charges are coming from the latest grand jury proceedings. Trump has followers that know he is a criminal but will still vote for him, which will allow him to defeat others in the primaries, but even many GOP are saying they will not vote for him in the general election, and obviously the Democrats who know how bad a criminal he is will vote against him. And it all goes back to Trump's lies and the violence he perpetrated on January 6th.

[exitseven]

Yes, under the current administration the US government is nearing the stature of a 3rd world bananna republic. That us what they mean by erosion of government. With Trumps multiple indictments to silence him and his supporters it has reached a boiling point. This is why all of a sudden this was announced. CNN is trying to spin it as a reflection on Trump but that is typical damage control by Democrat operatives with press passes

[Jersey2]

Yes, its a problem! So is Biden and Yellen’s responses which foreshadowed no serious thought in how to reverse it but rather they will ignore it. Biden gave away soooo much money in PPP to criminals and then tried to give away more on Student Loans that we are in trouble. I firmly believe that Biden is a crook and his son too.

S&P downgraded the US to AA+ ten years or so back. Moody’s will now have to consider it.

The younger generation will pay heavily for their Trump hate as the economy continues to sink. They will also laughably blame Boomers for the F up in voting.

[RealMarek]

Their stated reasons are overly political, but we deserve to have US debt downgraded. Dedollarization is going to be the huge driver that results either in a default or monetizing the debt away via inflation. Both outcomes are bad long-term for investors in USG debt.

[exitseven]

Fitch also mentioned the upcoming recession they did not even think it will be a question

[RealMarek]

The yield curve inversion and fed rate increases make recession highly probable.

[AviatorTom]

Not really. Congress will just go on spending money it doesn't have, increasing the national debt with no concern for the consequences.

20 years ago, the US national debt was a manageable $5 trillion, in 2023 it is $32 trillion. It doesn't matter who the President is or which party controls Congress... it's just spend... spend... spend.

[jshm2]

Actually Trump did that.

The policies they are judging from, are from Trump era recovery.

[exitseven]

If Fitch took years to issue their findings they would not be in business very long. Biden owns the whole enchilada.

[ProbablyClueless]

It's an indication of a very serious problem with how out of balance our government spending and economic production is.

[AngryCarl2]

AA+ is still pretty good. The US will still be able to borrow. Fitch rates UK AA- and we still borrow beyond our means.

[exitseven]

Yes it is still good but it will be more expensive.

[msc545]

This is related to things that occurred during the Trump era and have nothing. Whatever to do with Biden.

[exitseven]

No, it is related to the unneeded spending that went on in the first year of the Biden administration. They also cited the upcoming recession. They think it is inevitable. They do not go back 3 years and try to blame it on Trump. Only members of the Biden administration do that.. this one sits right on the front lawn of the White House, right next to the Open For Business sign.

[Daniela1982]

Biden has raised the National Debt to unseen highs. How does the question have nothing to do with Biden, especially with his ugly puss used in the question? You don't see Trump's pic there, do you?

[msc545]

No, Biden has not raised the national debt to any significant degree. The national debt has been raised primarily by incessant republican spending and by Trump's policies. However, even if Biden had raised the national debt, so what? How does that affect you and your everyday life and how does it affect me in my everyday life? The answer is it doesn't. It's just another way of casting aspersion on Biden in the hope that people will forget about the fact that Trump is quite literally a traitor as well as a mentally ill criminal who needs to go to prison for the protection of all of the rest of us. Read the latest indictments against Trump and see how you feel after that.

[Daniela1982]

Just because Biden has not been impeached for his dealings with China and other misdeeds, doesn't mean he won't after he is no longer President. That is why all eyes are on Trump, while Biden's misdeeds drop under the radar. It wasn't Trump who opened the border of cause many deaths in Afghanistan, as well as leaving $Billions in equipment behind or left the people who helped the US behind to be tortured and killed by the Taliban. All the crime and deaths fall on Biden, not Trump, who was actually trying to stop illegal immigration and the entrance of drug dealers, cartel members, gangs, sex traffickers, and all other sorts of miscreants into the US.

[exitseven]

@msc545. The deficit increased 1.15 trillion in 2023, 3 trillion in 2021 and so far 1.37 trillion for 2023 through the month of June. That's a lot of zeroes

[msc545]

So what?

[exitseven]

@ you Saud Biden has not raised the deficit by a significant degree. I would call almost 5 trillion a significant amount.

[msc545]

He didn't personally do it spending by Republicans did it. All that defense spending really makes a nasty dent in the deficit.

[exitseven]

@msc545 Printing all that money contributed to the already out of control inflation caused by the dismantling of our domestic energy production. I was going to retire in 2021 but after seeing the carnage done to the economy I figured i better stay employed until after the next election and hopefully things will get better. So yes, it did effect me.

[msc545]

Our energy production problem was caused by Trump. You boy got arrested for the third time today Having some doubt now?

[exitseven]

We were energy independent and gas was 2 bucks a gallon when Trump was president. Can you tell me exactly what the problem was?
Trump is only one more indictment away from a sure victory.

[jeffend888]

When you print 10 trillion+ dollars in a span of 2 years, that tends to happen.

[Anonymous]

As big of a problem as it was after it happened after the credit crisis of 2008.

Life went on.

[Anonymous]

I have never heard of this rating before can someone explain?

[exitseven]

Bond ratings are assigned by companies like Fitch to give lenders an idea of how solvent an organization is. If an organization had a bad rating most lending institutions will charge them a higher interest rate because they are assuming more risk.

[Opinion Owner]

Ah I see.

[Drewtate]

Biden economics.

[Fuentes]

Everything he does is a problem

[jimmy2]

Bidenoavos