US Credit Rating Downgrade

[NorthDallas40]

And number 2 was rising deficits

Actually that was number one according to Fitch and number two was a lack of any meaningful fiscal controls to slow the rate of rise. LG’s reason didn’t appear anywhere on Fitch’s list that I recall

 

[volinbham]

Funny to see the administration simultaneously say it's no big deal and it's entirely the fault of Republicans.

 

[volinbham]

Joe's been in the WH for 2 of these now.

Attaboy Joe!

 

[hog88]

Funny to see the administration simultaneously say it's no big deal and it's entirely the fault of Republicans.

Funny as in seeing the same comedian 100 times and they never change their routine?

 

[Ttucke11]

Joe's been in the WH for 2 of these now.

Attaboy Joe!

They accomplished what they set out for.

 

[theFallGuy]

The # 1 reason for the downgrade is the increasing difficulty we have had in adjusting the debt limit. Most recently that was due to the antics of the Freedom Caucus. And they show no signs of tempering their theatrics, quite the opposite in fact.

You can theorize all you want about an alternative hypothetical universe in which we have either no or very low national debt, but that is not the reality we face.

I'm all for SANE, LEVEL HEADED people running for Congress or President on a platform of reducing the debt, with reasonable and practical solutions over time to achieve that goal. But the histrionics of Freedom Caucus types, insinuating themselves into the discussions and negotiations by the adults, is not helping anyone.

gonna go out on a limb here, but why don't we just try to stay below the debt limit?

 

[jvol1]

Shifting the burden of the various 2000s financial crises into our currency brought this about, so bush, obama, trump, and biden share in the blame as far as party politics go. Probably we should look at the economists who pushed us into these policies to determine who is truly to blame.

 

[hog88]

Shifting the burden of the various 2000s financial crises into our currency brought this about, so bush, obama, trump, and biden share in the blame as far as party politics go. Probably we should look at the economists who pushed us into these policies to determine who is truly to blame.

Hell it goes back decades, no 1 party or president owns it completely.

 

[jvol1]

Hell it goes back decades, no 1 party or president owns it completely.

Our policy concerning debt became irresponsible more recently. Carrying some debt makes sense. I dont remember getting a refund check/not buying your vote attempt at all check until bush. The nation's fiscal irresponsibility picked up significantly under him and his successors.

 

[lawgator1]

Shifting the burden of the various 2000s financial crises into our currency brought this about, so bush, obama, trump, and biden share in the blame as far as party politics go. Probably we should look at the economists who pushed us into these policies to determine who is truly to blame.

Everyone here realizes that administrations from both parties have added to the debt. Everyone here wants a solution that does not throw the economy into absolute chaos. Everyone here realizes that this necessarily means coming up with plans for change on a 25 to 50 year timeframe, not a 25 to 50 day timeframe.

But its kind of like the border. Both sides like to complain the other is screwing it up so as to run on it as an issue in the next campaign, and so they are incentivized not to actually resolve anything.

 

[hog88]

Our policy concerning debt became irresponsible more recently. Carrying some debt makes sense. I dont remember getting a refund check/not buying your vote attempt at all check until bush. The nation's fiscal irresponsibility picked up significantly under him and his successors.

It's been that way since the 30s and gradually ramped up over the years, Clinton put the accelerator to the floor and none of his successors have eased off in the least.

 

[NorthDallas40]

Everyone here realizes that administrations from both parties have added to the debt. Everyone here wants a solution that does not throw the economy into absolute chaos. Everyone here realizes that this necessarily means coming up with plans for change on a 25 to 50 year timeframe, not a 25 to 50 day timeframe.

But its kind of like the border. Both sides like to complain the other is screwing it up so as to run on it as an issue in the next campaign, and so they are incentivized not to actually resolve anything.

Then why is the vegetable in the WH continually claiming to have lowered the deficit by over $1T FFS?! Puddinhead is pissing on you and telling you it’s raining and you’re out dancing in it.

 

[LouderVol]

The # 1 reason for the downgrade is the increasing difficulty we have had in adjusting the debt limit. Most recently that was due to the antics of the Freedom Caucus. And they show no signs of tempering their theatrics, quite the opposite in fact.

You can theorize all you want about an alternative hypothetical universe in which we have either no or very low national debt, but that is not the reality we face.

I'm all for SANE, LEVEL HEADED people running for Congress or President on a platform of reducing the debt, with reasonable and practical solutions over time to achieve that goal. But the histrionics of Freedom Caucus types, insinuating themselves into the discussions and negotiations by the adults, is not helping anyone.

yeah it has nothing to do with the actual debt numbers being insanely high, or the actual deficit being insanely high. Or that no one is actually willing to sacrifice their own sacred cow to avoid dealing with a default.

no its the guys faults who didn't just go along with all the things that made this an issue to start.

as always you expect on the right side to compromise. no need to give on your own side, always completely without fault, always blame someone else. Very Trumpian of you.

 

[Orangeburst]

We expect the general government (GG) deficit to rise to 6.3% of GDP in 2023, from 3.7% in 2022,

gonna be brutal. much higher taxes incoming

 

[Orangeburst]

The # 1 reason for the downgrade is the increasing difficulty we have had in adjusting the debt limit. Most recently that was due to the antics of the Freedom Caucus. And they show no signs of tempering their theatrics, quite the opposite in fact.

You can theorize all you want about an alternative hypothetical universe in which we have either no or very low national debt, but that is not the reality we face.

I'm all for SANE, LEVEL HEADED people running for Congress or President on a platform of reducing the debt, with reasonable and practical solutions over time to achieve that goal. But the histrionics of Freedom Caucus types, insinuating themselves into the discussions and negotiations by the adults, is not helping anyone.

those dang tea baggers

 

[Orangeburst]

based on 6.3% they project a $1.6T budget deficit this year,,,just absolutely record setting, brutal and pathetic
no wonder Bidenomics suck

 

[W.TN.Orange Blood]

 

[hog88]

Need to borrow 1 trillion for a quarter, we're fine debt isn't a problem according to @MontyPython

‘Eye-popping’ $1 trillion third-quarter borrowing need from U.S. Treasury raises risk of buyers’ fatigue

 

[LouderVol]

Need to borrow 1 trillion for a quarter, we're fine debt isn't a problem according to @MontyPython

‘Eye-popping’ $1 trillion third-quarter borrowing need from U.S. Treasury raises risk of buyers’ fatigue

and this was all after they double prinky promised they were going to address the issue after we agreed to extend the default until it was much worse.

what progress has been done? nadda. its why I was saying there never should have been a partial agreement.

 

[Orangeburst]

gonna be a demand for higher taxes on everybody
this is like slow motion wreck happening
dont even get me started on CC spending
We have dysfunctional government. It isn’t working

 

[DC_Vol]

Hey, just want to keep everyone honest. Kinda disingenuous to bitch about or point fingers concerning our credit rating all the while supporting continued borrowing for Ukraine.

Which cow is now more sacred? Ukraine or social security?

 

[hog88]

Which cow is now more sacred? Ukraine or social security?

For a lot of them Ukraine is the most important thing.

 

[MontyPython]

Need to borrow 1 trillion for a quarter, we're fine debt isn't a problem according to @MontyPython

‘Eye-popping’ $1 trillion third-quarter borrowing need from U.S. Treasury raises risk of buyers’ fatigue

I'd prefer a reduction in total debt, actually. We can't continue with more $1T+ / quarter deficits.

Having said that, there is no crisis, per se... yet... other than those manufactured for political reasons. Both parties are guilty. But, today's debt payments are actually less than they were throughout all of the Reagan, Bush Sr. and Clinton years (see red line below). To his credit, Clinton was the only President in modern times to (essentially) balance the budget.

And, oh BTW, this is not the first time our almighty AAA bond rating has been plinked by a rating agency.

 

[hog88]

I'd prefer a reduction in total debt, actually. We can't continue with more $1T+ / quarter deficits.

Having said that, there is no crisis, per se... yet... other than those manufactured for political reasons. Both parties are guilty. But, today's debt payments are actually less than they were throughout all of the Reagan, Bush Sr. and Clinton years (see red line below). To his credit, Clinton was the only President in modern times to (essentially) balance the budget.

And, oh BTW, this is not the first time our almighty AAA bond rating has been plinked by a rating agency.

View attachment 567260

True, the only other time was during Obama's term.

But keep whistling past the graveyard.

 

[MontyPython]

Hey, just want to keep everyone honest. Kinda disingenuous to bitch about or point fingers concerning our credit rating all the while supporting continued borrowing for Ukraine.

Your math (and logic) ain't so good, broseph.

Since the war began, the Biden administration and the U.S. Congress have directed roughly $75 billion in assistance to Ukraine, which includes humanitarian, financial, and military support.

That's $0.075 Trillion dollars. Over 6 quarters.

That's an average of $0.0125 Trillion dollars per quarter.

The US deficit for Q2 is estimated around $1.0 Trillion dollars.

Thus, by your math, supporting Ukraine is "the problem", yet it only accounted for 1.25% of our budget deficit.

Ukraine is the problem, not the other 98.75% of government spending.