Posted on 08/06/2023 6:59:42 PM PDT by John Semmens
Citing an increased risk of default, Fitch Ratings downgraded US government debt. Richard Francis, a senior director at Fitch, said "the rising quantity of borrowed money combined with a collapse of revenues raises the odds that lenders will not be paid back in full for the funds they have lent to the US government. It is our obligation to apprise future potential lenders of this fact."
US Treasury Secretary Janet Yellen called the downgrade "flawed and entirely unwarranted. It's not as if we are unable to secure the funds that will be needed to pay off these loans. There is more than enough wealth inside our borders to cover all of these debts. It's merely a question of how to get our hands on this money. The power of Congress to tax is unlimited. Wealth that we have allowed to remain in private hands can seized if Congress has the will to do so. If Congress balks at authorizing this transfer, the Federal Reserve can simply create more money."
Sen. Joe Manchin (D-WV), a potential "No Labels" Party candidate for president, was unimpressed by Yellen's arguments, saying "having the Federal Reserve create more money is itself a partial default on the government's debt, as lenders will be repaid in dollars worth less than those they lent. Seizing personal wealth is likely to worsen the problem as the holders of that wealth will resist, move, or hide their assets. This would increase political turmoil and deter potential lenders from reinvesting their proceeds from maturing bonds in the new bonds needed to cover government deficits. The best approach for restoring the credit of the United States would be to reduce spending so it doesn't exceed sustainable revenues."
Presidential Press Secretary Karine Jean-Pierre rebuffed Manchin's and Francis' views, asserting that "the President rejects the notion that anyone is competent to judge his powers and policies. No one can be permitted to interfere with his efforts to save the world. Those who attempt to do so will rue the day they got in his way."
If you missed any of the other Semi-News/Semi-Satire posts you can find them at...
https://www.gopbriefingroom.com/index.php/topic,508078.0.html
So our debt exceeds the global annual output for a year. How is. it that we are rated that high?
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