Moody’s Cries Wolf – Nobody Pays Attention!

Moody’s Cries Wolf – Nobody Pays Attention!

Wolf in sheep's clothing concept - Moody’s Cries Wolf – Nobody Pays Attention! - Miller on the Money

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.”

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19 Comments
foot in the forest
foot in the forest
December 14, 2023 9:53 am

The printed dollar is achieving its natural value. Have real things.

Harrington Richardson: Call Him "Weimar Joe"
Harrington Richardson: Call Him "Weimar Joe"
  foot in the forest
December 14, 2023 1:04 pm

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.

Tex
Tex

Dow Jones scores another record close. Joe Blow is so brain dead he does not realize it’s because of him.

Tom MacGyver
Tom MacGyver
  foot in the forest
December 14, 2023 1:20 pm

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.

B_MC
B_MC
December 14, 2023 10:15 am

The Jenga Economy

comment image

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.

comment image

comment image

One step closer to living in the Prime® Pod™

The Jenga Economy

Anonymous
Anonymous
  B_MC
December 14, 2023 10:22 am

$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.

Iska Waran
Iska Waran
  B_MC
December 14, 2023 10:47 am

There’s no way we’ll make it to 2033 before we hit $50 T.

Anonymous
Anonymous
  Iska Waran
December 14, 2023 11:40 am

70

Anonymous
Anonymous
December 14, 2023 10:40 am

Rumor mill , anybody got a real source for these claims ?

mark
mark
  Anonymous
December 14, 2023 11:31 am

Go to the THIS IS FINE thread…4 other links.

Tr4head
Tr4head
December 14, 2023 10:47 am

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.

B_MC
B_MC
December 14, 2023 11:08 am

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/)

Machinist
Machinist
  B_MC
December 14, 2023 11:35 am

“Don’t Cry for Me Argentina”

Anonymous
Anonymous
  Machinist
December 14, 2023 11:57 am

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]

Anonymous
Anonymous
December 14, 2023 11:51 am

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.

Tom MacGyver
Tom MacGyver
December 14, 2023 1:18 pm

“She insists Americans are happy with their economic situation…”

AAAAND she asked WHO?… She sure as hell didn’t ask ME!

Harrington Richardson: Call Him "Weimar Joe"
Harrington Richardson: Call Him "Weimar Joe"
  Tom MacGyver
December 14, 2023 1:32 pm

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

TN Patriot
TN Patriot

I just imagine those NGO’s are making some hefty “campaign contributions”. 10% for the gratuity or is it 10% for the graft?

TN Patriot
TN Patriot
  Tom MacGyver
December 14, 2023 5:36 pm

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.