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 ...
Leftists destroy economies. Just look at Venezuela and Argentina.
Looks like Moody’s chief executive needs to get his mind right.
Maybe do an FBI midnight raid of his house.
“The Biden administration rejected the Moody’s downgrade, with Treasury officials insisting the U.S. economy is thriving.”
They can say anything they want, those who agree are ftards and the rest can’t do anything about it.
Yet these rating agencies still give China high marks ... even though dead-beat China hasn’t paid on their old railroad bonds since they became communist. (Owing American bondholders about $1.6 trillion.)
“ Leftists destroy economies. Just look at Venezuela and Argentina.”
It’s part of the plan. Leftist want to impoverish everyone except themselves, claim to be everyone’s savior, and use the devastation as an excuse to take absolute power.
>> Treasury officials insisting the U.S. economy is thriving.
The third Obama administration is gaslighting like crazy!
I’ll catch flak but.....
Interstate 81 economic indicator:
Based on wall to wall right lane tractor trailer traffic on both the north bound and south bound sides of I 81 in South West Virginia, there is tremendous economic activity represented by all those trucks hauling all that stuff.
Business is good. The I 81 is crowded by trucks from all over the country moving a tremendous volume of cargo from sellers to buyers.
Even though we have a sour economy, the Deep State will never permit a major economic disaster prior to the 2024 election. They have sufficient power and control over events to protect their presidential candidate from the political damage that might result from a meltdown.
Ignoring the obvious other factors, some recent examples in my life:
A brand name sink/faucet combo I bought in May increased in price from $259 to $349 in 6 months.
A car part I priced in late September increased from $98 to $109 in just over 30 days.
Calculate the average annual inflation rate for each, compare to the dem/leftist propaganda, weigh against interest rate hikes & printing money policies out of DC and get back to me if ‘negative’ is valid or not.
It should have been negative over a year ago and the so-called ‘inflation reduction’ bill (IRA) should NEVER have passed. Nor should the so-called ‘infrastructure’ (IIJA) bill.
Rather than observe the current rate if inflation, the curve should be integrated say from January 2020 to the present to indicate the actual economic calamity.
The monthly inflation is cumulative
Interstate 81 is the alternate East Coast corridor which trucks heavily use because Interstate 95 is too crowded with personal vehicles and travels through all the large East Coast cities from Richmond to Boston. While the heavy truck traffic is a good sign, remember that the interstate highway system was built for a country with half the current population. The environmental movement and the not in my backyard crowd have prevented a needed expansion of the interstate highway system. Combined with the inability of state transportation departments widen the interstates or to build alternate highways, the interstate system necessarily becomes overcrowded. Alternate highways have not been done, for example, it would be easy to upgrade US 301 to a freeway thereby bypassing the Washington DC area through Maryland and Virginia. But the political will to do so has been lacking.
“Maybe do an FBI midnight raid of his house.”
Not FBI. Get ready for a suicide.
wy69
But, but, but, but - Kevin McCarthy and Chuck Schumer and Joe Biden cooked up a deal in June that they would not increase the national debt by more than 4 TRILLION dollars in 19 months.
4 TRILLION Dollars in 19 months. Good thing Kevin McCarthy is such a strong conservative or the increase agreement might have been for more. Of course, they have to actually get there, but how hard can it be? After all, this country, founded in 1776, took 210 years to run up the first 4 Trillion debt, so the spenders have improved their game considerably since then.
Does Moody's think those illegals are all going to walk here for free? And what about the sad story of little Zellie needing more dollars and weapons to wage war against Putin? Of course not!
Yes it is, and prices are NOT going down.
Even the gasoline prices they parrot are impossibly low.
The only rationale for the low gas prices is over supply, translated to lower demand or over production.
They KNOW that this is going to blow up in the coming months; the looming bombs on the horizon are meant to be a distraction for their failures.
The Biden administration rejected the Moody’s downgrade......
Did ANYBODY expect Biden’s merry band of retards to say ANYTHING different???
The article discusses excessive gov borrowing and credit worthyness of the USG. Keywords: hyper inflation, hyper taxation, debt default, economic collapse. Argentina, Venezuela and now Columbia come to mind.
Get a passport and use geographic arbitrage
“Leftists destroy economies.”
***********
They destroy everything.
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