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> Fitch late on Tuesday lowered the US long-term rating one rung from triple A to double A plus, citing the country’s growing debt burden and an “erosion of gov
by belfalas 3y ago
> Fitch late on Tuesday lowered the US long-term rating one rung from triple A to double A plus, citing the country’s growing debt burden and an “erosion of governance”, including on fiscal matters. The action came two months after the country narrowly averted default amid political wrangling over the federal borrowing limit.
This seems like a pretty fair and accurate assessment. If the United States wants to continue to promote itself as a beacon of stability, democracy, and being the shining city on the hill, the current status quo needs to change.
It seems like a debt ceiling fight is now just part of the standard political theater. Every so often the country starts heading towards the cliff edge and every time thus far it's been pulled back. Eventually the other shoe will drop however and when it does, that's going to hurt.
- JJMcJ 3y agoI really fear that someday one of these debt ceiling standoffs is really going to hit the fan, the credit rating takes a big hit, and the expense and loss of world standing could be catastrophic.
- smileysteve 3y agoIf i were a ratings agency, I would have downgraded the US Debt to junk at the end of May. There was a real chance that the US was going to default
- AustinDev 3y agoWhy not any of the last handful of times this happened? This one didn't even have a government shutdown attached to it.
- smileysteve 3y agoThis June, 2023 was not a government budget (that causes a shutdown), but a government debt limit to pay existing debts; of which, the comparisons are 2011... and when the US left the Silver standard.
- prepend 3y agoJunk doesn’t mean a real chance. I think your methods as a ratings agency would not engender many subscribers.
- JJMcJ 3y agoCertainly that called into question at least the AAA standing, though the possibility of total default or even long delays is unlikely. Looking at what Sen. Tubberville is doing with the senior military confirmations, the possibility that someone could cause an actual default can't be ignored.