Fitch Ratings downgrades US debt from AAA to AA+ over "repeated debt limit standoffs and last-minute resolutions" and "erosion of governance"

essentialsaltes said:

Fitch downgrades US debt on debt ceiling drama and Jan. 6 insurrection​

Explaining its rationale for the downgrade, 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.”

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We'll see if this is enough to get the House GOP to maybe pass a budget, and to stop using the debt ceiling as a plaything (when the White House occupant has a (D) next to his name).

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Belk said:

We will see if they can corral their right flank.

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essentialsaltes said:

Fitch downgrades US debt on debt ceiling drama and Jan. 6 insurrection​

Explaining its rationale for the downgrade, 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.”

--

We'll see if this is enough to get the House GOP to maybe pass a budget, and to stop using the debt ceiling as a plaything (when the White House occupant has a (D) next to his name).

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hislegacy said:

Good job Mr. President - Attaboy!


Maybe they should stop spending like drunken sailors on leave.

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wing2000 said:

Maybe the Republicans should put on their big boy pants and responsibly govern....instead of holding our government hostage over minority demands. If they have an issue with x spending, debate it in Congress...and if the measure loses, go home and come back on another day.

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essentialsaltes said:

President Biden released his budget. The GOP House majority has yet to offer an alternative.

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essentialsaltes said:

I'm not sure what was out of control, since Appropriations for FY2022 and FY2023 were smaller than the one in 2021. But in both cases, some Republicans joined Democrats in voting for them.

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essentialsaltes said:

Fitch downgrades US debt on debt ceiling drama and Jan. 6 insurrection​

Explaining its rationale for the downgrade, 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.”

--

We'll see if this is enough to get the House GOP to maybe pass a budget, and to stop using the debt ceiling as a plaything (when the White House occupant has a (D) next to his name).

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Blade said:

Treasury calls it arbitrary

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essentialsaltes said:

Anybody want more downgrades?

Chance of a government shutdown grows​

The far-right House Freedom Caucus escalated the stakes Monday by releasing a list of demands to support a short-term, stopgap funding bill that will likely be needed to prevent a government shutdown at the end of the fiscal year on Sept. 30.

A conference divided​

Before supporting a continuing resolution (CR), the Freedom Caucus is demanding the legislation include:

• A House-passed border security bill;
• A way to “address the unprecedented weaponization” of the Justice Department and the FBI; and
• Provisions that would put an “end” to the “woke polices in the Pentagon.”

The group didn’t specify how to address Justice Department “weaponization” or how to end “woke policies” in the military.

Great, even the people who want it have no idea how to accomplish it. Nor does the House have a complete budget set out in actual appropriations bills. And the continuing resolution is being held hostage.

Speaker McCarthy will have to decide if he wants to pointlessly placate the 4 dozen Freedom Caucus members, or offer a relatively clean CR to get Democratic support. That would buy some time so the House GOP can actually present the nation with some sort of plan of how they want to reduce spending.

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Pommer said:

Political anger is a useful and effective tool in accomplishing various tasks and should be utilized early and often.
Yet when it is the only tool, it can get in the way since the “solutions” to problems become secondary to venting this anger.
This is that.

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