Economy Biden Administration Furious After US Credit Rating Downgrade; US Debt Outlook Now Negative

[Orgasmo]

This is not a good spot for Murica to be in. The deficit is constantly growing with debt ceiling being increased year over year. At the same time, these downgrades will make cost of borrowing higher for Murican government. Eventually you will go into a downward spiral where your tax revenues are just going to servicing existing debt obligations.

NEW YORK/WASHINGTON, Nov 10 (Reuters) - Moody's on Friday lowered its outlook on the U.S. credit rating to "negative" from "stable" citing large fiscal deficits and a decline in debt affordability, a move that drew immediate criticism from President Joe Biden's administration.

The move follows a rating downgrade of the sovereign by another ratings agency, Fitch, this year, which came after months of political brinkmanship around the U.S. debt ceiling.

Federal spending and political polarization have been a rising concern for investors, contributing to a selloff that took U.S. government bond prices to their lowest levels in 16 years.

"It is hard to disagree with the rationale, with no reasonable expectation for fiscal consolidation any time soon," said Christopher Hodge, chief economist for the U.S. at Natixis. "Deficits will remain large ... and as interest costs take up a larger share of the budget, the debt burden will continue to grow."

Sauce: Moody's turns negative on US credit rating, draws Washington ire | Reuters

 

[Rob Battisti]

“The debt is a small problem which is only because the government doesn’t tax enough to cover its spending” - Smartest Poster on Sherdog

 

[fedorthegoat777]

On pace to destroy America, the plan is going well.

Devalue the currency, create chaos with crime, open the border to flood it with illegals.

All we need now is a world War.

 

[Bunk Moreland]

Moodys and Fitch ain’t wrong.

 

[Eric O]

On pace to destroy America, the plan is going well.

Devalue the currency, create chaos with crime, open the border to flood it with illegals.

All we need now is a world War.

It's embarrassing to watch the country be purposely destroyed.

 

[Fake Doctor]

@Jack V Savage - better get in here doing damage control. The credit agency must be wrong, or this is a good thing that only shows the underlying strength of the American economy, or we're misinterpreting it somehow. Go.

 

[HARRISON_3]

So what is it now?

Like a 680?

 

[Fox by the Sea]

in before "this doesn't matter, the economy is better than it has ever been"

 

[S Class]

"Build Back Better"

in before "this doesn't matter, the economy is better than it has ever been"

Or "inflation is a good thing!"

 

[4daLuLZ]

D. Trump remaking America in his image.
A deadbeat that doesn’t like to pay his bills and obligations and who lending money is risk.

 

[Beechwood]

As much money as Biden has spent I'm not to surprised at the credit rating downgrade.

 

[Belaya Smert]

People putting more on credit as we print more money to devalue our dollar.
Solid game plan

 

[cincymma79]

“The debt is a small problem which is only because the government doesn’t tax enough to cover its spending” - Smartest Poster on Sherdog

It’s probably transitory

 

[Son of Jamin]

On this trajectory, the bread queues will be marketed by the talking heads as the best place to meet new friends and to get that communtity feel back that has been missing for such a long time.

 

[Loiosh]

“The debt is a small problem which is only because the government doesn’t tax enough to cover its spending” - Smartest Poster on Sherdog

Do you think any legit list of top five smartest WR posters doesn't include him?

 

[Rob Battisti]

Do you think any legit list of top five smartest WR posters doesn't include him?

yes

 

[Loiosh]

yes

OK!

 

[spamking]

yes

 

[spamking]

This sort of thing happens when you're sending millions outside the country . . . and can't seem to agree on an actual budget to fund the government.

 

[Zazen]

God-King Trump will fix everything. We’re good