Moody’s Cries Wolf – Nobody Pays Attention!
Guest Post by Dennis Miller at Miller On The Money
Moody’s rating service lowered its outlook on the US credit rating to “negative” from “stable”. This is not a ratings downgrade; but rather a warning of things to come. This follows actual downgrades in the US credit ratings from Fitch and S&P Global Ratings.
Yahoo Finance reports:
“The key driver of the outlook change to negative is Moody’s assessment that the downside risks to the US’s fiscal strength have increased and may no longer be fully offset by the sovereign’s unique credit strengths.
…. In the context of higher interest rates, without effective fiscal policy measures to reduce government spending or increase revenues, Moody’s expects that the US’ fiscal deficits will remain very large, significantly weakening debt affordability.
Continued political polarization within US Congress raises the risk that successive governments will not be able to reach consensus on a fiscal plan to slow the decline in debt affordability.”
SHOP HERE FOR LAST MINUTE GIFTS
Yahoo outlines the politics; each political party blaming the other, concluding:
“However the politics play out, analysts expect the debt to be an unavoidable issue for the foreseeable future. ‘Interest rates have shifted materially and structurally higher,’ (said) William Foster, a senior credit officer at Moody’s. …. ‘Our expectation is that these higher rates and deficits around 6% of GDP for the next several years, and possibly higher, means that debt affordability will continue to pressure the US.’
As for what happens next, Foster said lawmakers need to address the problem directly. …. ‘We need to have evidence that the government will reduce deficits either through lower spending, or other measures or raise revenues.'”
As always, Treasury Secretary Janet Yellen disagreed:
“This is a decision I disagree with. ‘The American economy is fundamentally strong, and Treasury securities remain the world’s preeminent safe and liquid asset.'”
Martin Armstrong is fed up:
“…. The US government is continually spending with no end in sight. The proxy wars have eliminated even a level-headed discussion of anything akin to a real budget.
…. I always question how this woman has a job. She insists Americans are happy with their economic situation, and called the US debt downgrade ‘arbitrary.’ Above she is promoting the propaganda about inflation being transitory.
Do not dare to mention the deficit when you continually support massive spending packages with hidden agendas. Yellen herself admitted that the Inflation Reduction Act was really a method to support climate change. ‘The Inflation Reduction Act is, at its core, about turning the climate crisis into an economic opportunity,’ Yellen admitted.”
The printed dollar is achieving its natural value. Have real things.
I saw the huge jump in Gold and Silver. Checked the USD and it took fairly large dump. Dollar up, commodities down. Dollar down, commodities up.
Not sure how to interpret it, but I have heard several stories today on financial TV about how the economy sucks for most but is going to be great for the well to do.
Dow Jones scores another record close. Joe Blow is so brain dead he does not realize it’s because of him.
Indeed. If you need it or even THINK you WILL need it, BUY IT NOW! Once the dollar crashes, tangibles will be out of reach.
The Jenga Economy
But the game of Jenga™ is a pretty good analogy for our economy right now. Jenga© is based on taking one piece from the lower part of the structure and putting it on top. As the game progresses, everyone can see that the structure becomes weaker and more unstable…
The tower is now, really, really tall. And really, really shaky.
And these things never end slowly – they end either with mass social unrest, a big war, or both when the tower finally collapses.
One step closer to living in the Prime® Pod™
$500 million worth of homes.
Hmm..
In SoCal that would be around 520 homes.
In Dove Mountain, Marana, AZ it would be around 250 homes.
There’s no way we’ll make it to 2033 before we hit $50 T.
70
Rumor mill , anybody got a real source for these claims ?
Go to the THIS IS FINE thread…4 other links.
I quit reading this as soon as the main source was “Yahoo Finance”. And his website won’t allow anonymous browsers or VPN to protect people on the internet.
Meanwhile, in Argentina….
Argentina Begins Shock Therapy With Peso Devaluation
In an announcement Tuesday, the new minister of the economy revealed the package of measures, which had been promised by the newly elected president Javier Milei.
After the devaluation, the official dollar exchange rate will be 800 pesos per dollar, compared with 365 pesos per dollar prior to the devaluation.
(https://www.thefinancialtrends.com/2023/12/14/argentina-begins-shock-therapy-with-peso-devaluation/)
“Don’t Cry for Me Argentina”
Don’t cry for me Argentina
The truth is I am a fiat,
Although inflation
Has stole your savings,
I was a promise,
Made, post kol nidre.
[Apologies to Don’t Cry For Me]
Today is the day the lights go out in New York City.
No power.
And a polar vortex is coming.
Lot of immis gonna be rethinking leaving the tropics about now.
“She insists Americans are happy with their economic situation…”
AAAAND she asked WHO?… She sure as hell didn’t ask ME!
They must have polled a bunch of African illegal aliens who just got free hotels, medical etc along with their $2,2oo per month debit card/$4,400 if they were clever enough for Ma and Pa to go through separately claiming to be single parents.
The NGO’s and grifters providing “services” for illegals are making out like bandits too. All kinds of new companies run by Democraps providing all kinds of services at military graft levels for their new pets. FJB
I just imagine those NGO’s are making some hefty “campaign contributions”. 10% for the gratuity or is it 10% for the graft?
Most of these writers live in a bubble and hear the same chatter from everyone they know, so it MUST be true. The Boston to Washington corridor is full of those living in the bubble.