Credit downgrade for U.S government threatens to put the squeeze on Washington and the average Joe

[HARK!]

Fitch Ratings’ downgrade of the federal government’s credit rating is not just an embarrassing black eye for Washington; it also will hit the government — and possibly average Americans — in the wallet, economists say.

Fitch dropped the long-term foreign currency issuer default rating to AA+, a step down from the top-tier AAA rating, for only the second time in history.

Although the rating is still highly favorable, the drop could downgrade bonds and increase interest rates, said Chris Edwards, an economist at the Cato Institute. He said that could eventually lead to a debt “death spiral.”

Credit downgrade for U.S government threatens to put the squeeze on Washington and the average Joe

Fitch Ratings’ decision to downgrade the federal government’s credit rating is not just an embarrassing black eye for Washington, but economists said it will also hit the government — and possibly average Americans — in the wallet.

www.washingtontimes.com

Thanks Joe!

 

[durangodawood]

....Thanks Joe!

Not really.

No one should use shut downs or default as a negotiating tactic. If you cant get your bill into law via normal tactics, then you cant get it into law and you need to propose a different one.

 

[Arcangl86]

Thanks Joe!

Fitch specifically mentioned "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." Joe Has only been president for 3, so it seems strange to blame him. Especially since all the debt limit standoffs have been driven by Republicans.

 

[HARK!]

Not really.

No one should use shut downs or default as a negotiating tactic. If you cant get your bill into law via normal tactics, then you cant get it into law and you need to propose a different one.

In its announcement of the downgrade, Fitch said the federal deficit is rising, spending is growing, tax revenue is slipping and efforts to trim the debt have been too timid.​

​

Credit downgrade for U.S government threatens to put the squeeze on Washington and the average Joe

Fitch Ratings’ decision to downgrade the federal government’s credit rating is not just an embarrassing black eye for Washington, but economists said it will also hit the government — and possibly average Americans — in the wallet.

www.washingtontimes.com

​

White House pivots to ‘Bidenomics’ message focused on more government spending​

The White House on Monday will launch an effort to convince voters that his economic plan dubbed “Bidenomics” is working to boost the lives of middle-class voters.

White House pivots to ‘Bidenomics’ message focused on more government spending

The White House on Monday will launch an effort to convince voters that his economic plan dubbed “Bidenomics” is working to boost the lives of middle-class voters.

www.washingtontimes.com

 

[JosephZ]

Thanks Joe!

Reasons for the downgrade:

Congress struggling to raise the borrowing limit. -- Republican Congress
Repeated debt limit standoffs and last-minute resolutions. -- Republican Congress
The Jan. 6, 2021 insurrection was a factor in its decision to downgrade because it indicated an unstable government. -- Trump

 

[durangodawood]

In its announcement of the downgrade, Fitch said the federal deficit is rising, spending is growing, tax revenue is slipping and efforts to trim the debt have been too timid.​

Ok, so reduce the deficit.

But dont use the idiotic "negotiating" tactics that are also contributing to the credit downgrade, if your OP is to be believed.

Nor is electing an R president going to help. History has shown us over and over that an R congress will not reduce deficits with an R pres in office. They dont want the economic hit of austerity on his watch. Instead they will lower taxes, fail to balance it with lower spending. And deficits will rise like happens over and over with Rs in charge of both branches.

Im all ears for an actual solution.....

 

[NxNW]

Thanks Joe!

Thanks McCarthy!

 

[HARK!]

Meanwhile...

Biden to seek an extra $25 billion for Ukraine and disaster relief​

President Biden plans to ask Congress for at least $25 billion in supplemental spending for defense and disaster relief — funding that would sidestep recently enacted budget caps and set up a potential clash with Republicans over more aid for the war in Ukraine.

Biden to seek an extra $25 billion for Ukraine and disaster relief

President Biden plans to ask Congress for at least $25 billion in supplemental spending for defense and disaster relief — funding that would sidestep recently enacted budget caps and set up a potential clash with Republicans over more aid for the war in Ukraine.

www.washingtontimes.com

 

[Fantine]

The threat of a government shutdown by the House firebrand who lead McCarthy around by the nose is a concern. Shutdowns help no one.