[Caymus]

Originally Posted by CoachKandSportsguy

One of the main concerns from Fitch is the deficit governance.
Meaning that the funding of 100%(+) to GDP with the debt ceiling requirements in Congress gets to be political brinkmanship more often than not.

I believe that the entire debt which funds all the different parts of the government,
ie, the administration as well as the outlays, is all lumped together into a single evaluation point. Personally, my opinion is that the original debt raise increase from about $700 B which then was increased to about 50% more to $1T by the Treasury, put Fitch over the edge on the downgrade which they had been working on for months.

The US is getting too big to manage effectively, as well as there have been some very dumb (imho) decisions by the Supreme Court and Congress. .

I may have missed it. Which recent Supreme Court decisions led to increased (deficit) spending?

[airstreamingypsy]

Fitch's downgrade has little to do with America's ability to pay their debt and everything to do with the shameful display of brinksmanship every time the debt ceiling is debated. I think it's a good thing to show these clowns that constantly bringing the country to the brink of collapse has consequences

[Vermilion Villager]

Originally Posted by twoplanekid

August 2, 2023

I received the follow email because of my position on the Investment Advisory committee in the Villages.

"Fitch Ratings (Fitch) downgraded its long-term ratings on the United States of America late yesterday, following through on the Ratings Watch Negative assigned on May 25.


In its press release, Fitch cited an expected fiscal deterioration over the next three years, the high and increasing government debt burden, and an erosion in governance standards relative to its “AAA”-rated peers over the last 20 years that has resulted in recurring debt limit standoffs and last-minute resolutions. Fitch also noted the complex federal budgeting process and the government’s lack of a medium-term fiscal framework.


We continue to closely monitor this developing situation and its market impact. Should you have any questions, please reach out to your PFMAM client service professional."

The old Saturday morning "Let's do a political post and not make it look like a political post...post" Yawn........

[Babubhat]

This is on par with saying the Sun will explode. Bigger things to worry about

[Cheapbas]

Originally Posted by airstreamingypsy

Fitch's downgrade has little to do with America's ability to pay their debt and everything to do with the shameful display of brinksmanship every time the debt ceiling is debated. I think it's a good thing to show these clowns that constantly bringing the country to the brink of collapse has consequences

Yep, absolutely THIS! Not to mention the insurrection of January 6th was specifically mentioned by a senior director.

[bumpa]

Originally Posted by Caymus

"if"? Which century will they cut useless spending?

Define Useless? Your Medicare? Military? Debt Interest?

What is the breakdown of the US federal budget?
The federal government spent $6.5 trillion in FY 2022 — or $19,434 per person — including funds distributed to states. Medicare, Social Security, defense and veterans, transfers to states, and aid such as SNAP and refundable tax credits were the biggest categories, accounting for 75% of spending.

[RUCdaze]

RPDaly, et al: We are not 'approaching' banana republic status; now we ARE a banana republic.

[Vermilion Villager]

Originally Posted by RUCdaze

RPDaly, et al: We are not 'approaching' banana republic status; now we ARE a banana republic.

Banana Republic of America. Est. Jan. 2017