Ouch.
Fitch Ratings downgraded the United States’ long-term foreign currency issuer default rating to AA+ from AAA on Tuesday, pointing to “expected fiscal deterioration over the next three years,” an erosion of governance and a growing general debt burden.
[…]
“In Fitch’s view, there has been a steady deterioration in standards of governance over the last 20 years, including on fiscal and debt matters, notwithstanding the June bipartisan agreement to suspend the debt limit until January 2025,” the ratings agency said.
Fitch also highlighted the rising general government deficit, which it anticipates will rise to 6.3% of gross domestic product in 2023, from 3.7% in 2022. “Cuts to non-defense discretionary spending (15% of total federal spending) as agreed in the Fiscal Responsibility Act offer only a modest improvement to the medium-term fiscal outlook,” Fitch said.
The agency also noted that a combination of tightening credit conditions, weakening business investment and a slowdown in consumption could lead the economy into a “mild” recession in the fourth quarter of 2023 and first quarter of next year.
All true. The federal government is led by a bipartisan group of big-spending geriatrics with no thought to America’s long-term solvency. It like the broke grandpa running up credit cards in a booze-fueled binge at a casino. At some point, you gotta cut him off.
So let’s get this straight, the Democrat city Governments have ghettoized blacks through a series of institutional racist tactics, but now want to skew the lines so that the ghettoes overlap other districts to get the suburbs too. I guess you have to leverage the areas you have, right?
How very constitutional, they will be re-instigating the 3/5ths law. They don’t need 92% of the vote in a current district, just 3/5ths of it. Put that extra 30 odd percent into a conservative neighborhood:).
But jv just spent days explaining how the economy is great again…. I don’t understand how these experts can disagree with him.
Jason, do you not understand the difference between the economy and the deficit & debt? Imagine it like this. Your mommy and daddy are making a lot of money now, but they are spending a lot more money than they are making.
Combine that with both sides playing games with the debt-limit ceiling all the time that creates an unsure future. Jason, it is like your daddy’s boss keeps telling him that he might fire him next week and everyone knows it. So people don’t trust giving your family any money.
Jason, I am proud of you. This is like 5th grade level stuff and you are handling it pretty well.
Jason is (correctly) anticipating a dump-taking in the US economy.
When? Well, the next round of inflation at >6%/year will begin 4Q23 or 1Q24; the Fed will raise rates again, probably by 100 basis points, obtaining credit for homes and cars will become much more challenging, as will obtaining unsecured credit (it’s already happening, but de minimis) and that will be The End.
Just in time for the ’24 election.
Jv… I do. Thanks for showing everyone reading today that you do not..
“The agency also noted that a combination of tightening credit conditions, weakening business investment and a slowdown in consumption could lead the economy into a “mild” recession in the fourth quarter of 2023 and first quarter of next year.”
Is that daddy’s wallet or daddy’s boss, or your mommy’s stinky cooter? I forget … Recess is all I care about… you big dummy.
Oh, and we will be in a recession only until the administration redefine it… Yet again. Speaking of stinky cooters…
>do you not understand the difference between the economy and the deficit & debt?
They’re not mutually exclusive. If you actually run a business then you should understand the concept of debt service and the consequences of when it’s poorly managed. Governments wrongly think they can ignore those consequences until additional taxation becomes their default remedy. Taxation for debt service serves only to remove money from the economy. Printing more money only fuels inflation. If you’re government without the ability to print money, like Milwaukee, this results in rapid and prolonged local economic contraction. Talking heads on the evening news have no impact on how money works. If you’re taking financial advice from Lester Holt, you’re in trouble.
Kamala Harris was bragging just yesterday about how well Bidenomics is working. She actually called it Bidenomics. With a smile on her face.
American consumers are not impressed. Neither are Fitch or the markets. Those would be entities that understand how money works.
Merlin, The Biden administration is using the term Bidenomics as a positive term because they feel that if they can get into the ’24 election without a recession they have done a good job. And I would probably agree with them, IF that happens. I don’t know how it will play out long term, but their objective was a slow comedown from the high inflation.
We might get a recession, hard to say how bad it will be at this point if it hits.
>if they can get into the ’24 election without a recession they have
You forgot the word “redefining”.
if they can get into the ’24 election without redefining a recession they have
You’re welcome stinky cooter mommas boy.
Redefining vocabulary is what they do. Usually comes with a generous sprinkling of warm fuzzies foo-foo dust specially formulated for their puddiin’ headed sheeple. VERY popular.
Stinky cooter Momma’s boy – jv – is party to the team that has perfected redefining terms, and their sheep drink it up and ask for more.
https://www.nationalreview.com/corner/it-depends-what-the-definition-of-recession-is/