US downgraded to AA+ from AAA by Fitch

[TomEric4756]

Fiscal blowout spending is an unsustainable ticking time bomb.

“Fitch pointed to “the expected fiscal deterioration over the next three years, a high and growing general government debt burden, and the erosion of governance relative to ‘AA’ and ‘AAA’ rated peers over the last two decades that has manifested in repeated debt limit standoffs and last-minute resolutions.”

Fitch said the decision wasn’t just prompted by the latest debt ceiling standoff but rather “a steady deterioration in standards of governance over the last 20 years” regarding “fiscal and debt matters.”

https://www.cnn.com/2023/08/01/business/fitch-downgrade-us-debt/index.html

 

[ButHerEmails]

Fiscal blowout spending is an unsustainable ticking time bomb.

“Fitch pointed to “the expected fiscal deterioration over the next three years, a high and growing general government debt burden, and the erosion of governance relative to ‘AA’ and ‘AAA’ rated peers over the last two decades that has manifested in repeated debt limit standoffs and last-minute resolutions.”

Fitch said the decision wasn’t just prompted by the latest debt ceiling standoff but rather “a steady deterioration in standards of governance over the last 20 years” regarding “fiscal and debt matters.”

https://www.cnn.com/2023/08/01/business/fitch-downgrade-us-debt/index.html

#thanksbiden

 

[IUCrazy2]

#thanksbiden

Thanks Bush, Obama, Trump, Biden and every Congressman who helped pass the budgets while each was in office.

 

[ButHerEmails]

Thanks Bush, Obama, Trump, Biden and every Congressman who helped pass the budgets while each was in office.

Probably want to start with Reagan, but skip Clinton.

 

[hookyIU1990]

Probably want to start with Reagan, but skip Clinton.

Needs to go back further than Reagan.

 

[Indyhorn]

Needs to go back further than Reagan.

Trickle down economy is when our federal debt starting rising exponentially- falling off the gold standard in the 1970’s allowed my GOP to lose its fiscal responsibility

 

[DANC]

Fiscal blowout spending is an unsustainable ticking time bomb.

“Fitch pointed to “the expected fiscal deterioration over the next three years, a high and growing general government debt burden, and the erosion of governance relative to ‘AA’ and ‘AAA’ rated peers over the last two decades that has manifested in repeated debt limit standoffs and last-minute resolutions.”

Fitch said the decision wasn’t just prompted by the latest debt ceiling standoff but rather “a steady deterioration in standards of governance over the last 20 years” regarding “fiscal and debt matters.”

https://www.cnn.com/2023/08/01/business/fitch-downgrade-us-debt/index.html

Bidenomics, baby!

 

[anon_6hv78pr714xta]

So we can agree both parties are responsible and skip 10 pages of “no, you’re the idiot” debate.

How do we fix this going forward? It’s clearly a systemic problem.

 

[Bulk VanderHuge]

So we can agree both parties are responsible and skip 10 pages of “no, you’re the idiot” debate.

How do we fix this going forward? It’s clearly a systemic problem.

You're too late...check #7.

 

[DANC]

Thanks Bush, Obama, Trump, Biden and every Congressman who helped pass the budgets while each was in office.

I think the trillions spent at the end of Trump's Presidency and the early part of Biden's tipped us over the edge.

But no doubt it was out of control before then.

 

[Baller23Boogie]

So we can agree both parties are responsible and skip 10 pages of “no, you’re the idiot” debate.

How do we fix this going forward? It’s clearly a systemic problem.

Hahahahahahahahaha.

People being civil around here. You've been here long enough that we both know that's in all likelihood not gonna happen.

 

[DANC]

So we can agree both parties are responsible and skip 10 pages of “no, you’re the idiot” debate.

How do we fix this going forward? It’s clearly a systemic problem.

There's no fixing it when there's such hysteria over keeping the budget the same year over year.

 

[anon_6hv78pr714xta]

You're too late...check #7.

Ignore it

 

[TMFT]

So we can agree both parties are responsible and skip 10 pages of “no, you’re the idiot” debate.

How do we fix this going forward? It’s clearly a systemic problem.

Cut entitlements, cut defense, cut non-defense discretionary, & raise taxes.

For me, I'll consider a move to Costa Rica before our society collapses under the weight of our own idiocy.

 

[SqueakyClean]

There's no fixing it when there's such hysteria over keeping the budget the same year over year.

Yup. This is exactly correct. There is a bunch of areas of spending that need to be cut. Ideally you would have both sides pick the 10 things they want cut and then walk into a room together. They can't leave the room until a total of 10 things are cut (5 from each side likely).
Rinse, Repeat, until you get the budget under control.

 

[DANC]

Yup. This is exactly correct. There is a bunch of areas of spending that need to be cut. Ideally you would have both sides pick the 10 things they want cut and then walk into a room together. They can't leave the room until a total of 10 things are cut (5 from each side likely).
Rinse, Repeat, until you get the budget under control.

So many special interests now, and the media loves to hyperventilate about any possible cuts. Except Defense. The media doesn't mind that, but the defense industry squalls like a stuck pig.

And, since special interest groups have big PACs, the local Representatives aren't about to go against them for fear they'll lose their next election.

IMO, an Amendment to the Constitution requiring a balanced budget, except in case of war, is the only way out. Politicians are fiscally illiterate and unable to help themselves from dipping into the honey pot.

 

[SqueakyClean]

So many special interests now, and the media loves to hyperventilate about any possible cuts. Except Defense. The media doesn't mind that, but the defense industry squalls like a stuck pig.

And, since special interest groups have big PACs, the local Representatives aren't about to go against them for fear they'll lose their next election.

IMO, an Amendment to the Constitution requiring a balanced budget, except in case of war, is the only way out. Politicians are fiscally illiterate and unable to help themselves from dipping into the honey pot.

I might be willing to have a couple of other exceptions besides war (global pendemic anyone?), but otherwise, yeah, I'd be on board with that.

 

[snarlcakes]

So we can agree both parties are responsible and skip 10 pages of “no, you’re the idiot” debate.

How do we fix this going forward? It’s clearly a systemic problem.

1) Accept lots of pain. Cut spending, raise taxes, and spread it out over a decade to try and lessen the burden. When a severe recession comes (or worse),accept it, and live with less. The chances of that happening are 0.

2) Option 2 is continue doing what we are doing. Blame "others" for the issues and continue running up debt and debasing the currency.

3) Option 3: Bitcoin (or something like it) where people willing choose it as their currency and it eventually takes away the ability for governments to print endlessly. Or at least force governments to adopt some semblance of a sound money policy.

 

[TMFT]

I might be willing to have a couple of other exceptions besides war (global pendemic anyone?), but otherwise, yeah, I'd be on board with that.

I'd add traditional Keynesian principles of allowing deficits to soften landings in recessions. e.g., unemployment & other stabilizers.

The problem is that we run big deficits and HUGE deficits in bad times. I also think the war exception is a little out of place. Pre-WW2, the standing military was pretty small and would have to be mobilized for war. Post-WW2, we have a huge and expensive standing military. It's ushered in pax Americana, but it comes at a price.

 

[DANC]

I'd add traditional Keynesian principles of allowing deficits to soften landings in recessions. e.g., unemployment & other stabilizers.

The problem is that we run big deficits and HUGE deficits in bad times. I also think the war exception is a little out of place. Pre-WW2, the standing military was pretty small and would have to be mobilized for war. Post-WW2, we have a huge and expensive standing military. It's ushered in pax Americana, but it comes at a price.

A balanced budget amendment doesn't preclude emergency spending, as long as the revenue is in place.

 

[TomEric4756]

Kudlow says Govt. spending traditionally was 20% of GDP … today’s spending is 25%,

 

[JamieDimonsBalls]

Fiscal blowout spending is an unsustainable ticking time bomb.

“Fitch pointed to “the expected fiscal deterioration over the next three years, a high and growing general government debt burden, and the erosion of governance relative to ‘AA’ and ‘AAA’ rated peers over the last two decades that has manifested in repeated debt limit standoffs and last-minute resolutions.”

Fitch said the decision wasn’t just prompted by the latest debt ceiling standoff but rather “a steady deterioration in standards of governance over the last 20 years” regarding “fiscal and debt matters.”

https://www.cnn.com/2023/08/01/business/fitch-downgrade-us-debt/index.html

Fitch is about as relevant as Vermont.

“Is Canada really a better credit than the United States? Or Luxembourg?,” Muir wrote. “The US is the world’s dominant power, and sure they have done some ill-advised things like wave a gun around threatening to shoot their own financial system with a default, but we all know they will eventually pay their bills.”

“Every country is different, has its own growth pattern — its own tax and spending structures so it doesn’t suggest any contagion to other countries,” senior economist Mickey Levy said on Bloomberg Television. “No country that has the strength of the US has been affected by this.”

 

[JamieDimonsBalls]

Cut entitlements, cut defense, cut non-defense discretionary, & raise taxes.

For me, I'll consider a move to Costa Rica before our society collapses under the weight of our own idiocy.

Don't let the door hit you on the way out

Spoiler

BTW Costa Rica is a great country.

 

[Joe_Hoopsier]

Don't let the door hit you on the way out

Spoiler

BTW Costa Rica is a great country.

Pura vida............... Until you need to be disappeared. Just don't make yourself need to have that happen.
I'm an honorary Tico.

 

[i'vegotwinners]

Needs to go back further than Reagan.

Reagan is when the insanity started, and Wall St and the billionaires took full control of the govt on everything economic.

since Reagan, blaming individual administrations is wrongheaded, as all said administrations were owned by the same entities, Wall St and the billionaires.

don't shoot the messenger, blame SCOTUS, not me. i'm not the one that legalized the sale of govt to the highest bidders.

that said, perhaps the cheapest fix to the downgrade is for the US to just bribe/pay Fitch to upgrade us again.

that strategy worked great for the fraudulent big bank criminal organizations in the 2000s, and who knows when else.

 

[snarlcakes]

Reagan is when the insanity started, and Wall St and the billionaires took full control of the govt on everything economic.

since Reagan, blaming individual administrations is wrongheaded, as all said administrations were owned by the same entities, Wall St and the billionaires.

don't shoot the messenger, blame SCOTUS, not me. i'm not the one that legalized the sale of govt to the highest bidders.

that said, perhaps the cheapest fix to the downgrade is for the US to just bribe/pay Fitch to upgrade us again.

that strategy worked great for the fraudulent big bank criminal organizations in the 2000s, and who knows when else.

Was it personal or just business?

 

[twenty02]

Not enough people paying their fair share.


Get the @UncleMark types to kick in another 3-5% and there won't be a problem.

 

[DrHoops]

Probably want to start with Reagan, but skip Clinton.

Trump's tax cut alone is 25% percent of that.

 

[UncleMark]

Not enough people paying their fair share.

Get the @UncleMark types to kick in another 3-5% and there won't be a problem.

I've said many times before I don't know what my fair share might be exactly, but I'm sure it's more than zero.