patrick.net

I see now why my stocks all fell today.

https://www.fitchratings.com/research/sovereigns/fitch-downgrades-united-states-long-term-ratings-to-aa-from-aaa-outlook-stable-01-08-2023

Of the 3 ratings companies, Moody's, Standard & Poor's, and Fitch, why is it always fitch that lowers ratings first?

Maybe they're more honest than the other two.

https://www.coffeeandcovid.com/p/indicted-wednesday-august-2-2023

The Hill ran an embarrassing but completely unsurprising story yesterday headlined, “Fitch downgrades US credit rating over rising debt, repeated standoffs.”

The story is not surprising because half the Congresspeople have low credit scores these days. So what do you expect when you put them in charge of the country?

For context, Fitch is only one of the three main credit rating agencies (which are different from credit reporting agencies, which rate individuals). Besides Fitch, the other two are Moody’s and Standard & Poor. It’s only one of them so far. Still, its big news Fitch downgraded the U.S. for the first time ever, from the best rating, AAA, to second best, AA+. As far as its reasons, the agency cited politicization of the budget, a record-setting level of debt, and no plan to deal with an aging population.

In other words, Fitch is appalled how fast the U.S. government is spending money. They’re spending money like it belongs to someone else or something.

The implications of the downgrade are potentially enormous. The lowered credit rating signals higher risk, which means U.S. treasuries will have to pay higher interest rates, making borrowing more difficult and expensive. The change could cause banks to go under as their bond assets are re-valued lower. And it could cause the dollar to lose value against other currencies.

Thanks Joe Biden!

Is it too late to take the Congressional credit card away? Or won’t that work, since they can just print more bills? I suspect Biden is going to keep on printing money. After all, he has a Proxy War to pay for.

You can keep on printing money until you can’t. But the good news is at that point, it’s all over fast. And pretty much everyone knows it, which makes us wonder how much longer Wall Street will allow this disastrous regime to continue.

So it looks like interest rates will be forced to rise further, forcing house prices lower.

Patrick says

wonder how much longer Wall Street will allow this disastrous regime to continue.

You see a battle between banks and Wall St? The banks will want to keep the printing presses going, as they have first access to that money and printing is what is used if bailouts are needed. Ever since Bernanke the policy to save the economy is to keep the rich bankers rich.

komputodo says

Of the 3 ratings companies, Moody's, Standard & Poor's, and Fitch, why is it always fitch that lowers ratings first?

Fitch is owned by the Hearst media conglomerate corporation.

https://www.hearst.com/-/fitch-group-becomes-a-wholly-owned-hearst-business
Hearst is one of the nation's largest diversified media, information and services companies with more than 360 businesses. Its major interests include ownership in cable television networks such as A&E, HISTORY, Lifetime and ESPN; global ratings agency Fitch Group; Hearst Health, a group of medical information and services businesses; 31 television stations such as WCVB-TV in Boston and KCRA-TV in Sacramento, Calif., which reach a combined 19 percent of U.S. viewers; newspapers such as the Houston Chronicle, San Francisco Chronicle and Albany Times Union, nearly 300 magazines around the world including Cosmopolitan, ELLE, Harper's BAZAAR and Car and Driver; digital services businesses such as iCrossing and KUBRA; and investments in emerging digital and video companies such as Complex Networks, AwesomenessTV, BuzzFeed and Vice.

In other words: Fitch is a disinformation specialist.

The ratings are phony, anyway, liptick on the pig. I think a C or B minus would be more appropriate given the national debt and that the foreign occupied foreign city state of Washington DC has been functionally bankrupt for a while now.

BIDENOMICS!

Patrick says

So it looks like interest rates will be forced to rise further, forcing house prices lower.

Or maybe property prices are so high because money is worth so little that people with money are stashing it in housing before money becomes worth less.

The poor can barely afford to survive while many of us are wondering, "Where am I going to put my extra cash?"

Real estate is real. Precious metals are real. The materials, machinery, manpower, intellectual property, and ideas of businesses are real. There is a lot of wealth in America.

Everything else seems to be a Ponzi scheme. Our national debt is growing. The value of our money is shrinking. Stocks are overpriced; bonds are worse.

We may have temporarily stopped the great reset and avoided digital passports but a lot of pain is yet to come. Bear Stearns had AAA rating, until they didn't

Wouldn't it be cool if we could put $250,000 in an FDIC savings account and get $1,000 a month income?

If interest rates were high enough why would someone spend all the hard work being a landlord?

What justification is there for charging interest on money conjured up from thin air?

Onvacation says

Wouldn't it be cool if we could put $250,000 in an FDIC savings account and get $1,000 a month income?

You are joking, right? Plenty of credit unions are offering 1-year CDs that pay 5%. That would be your $1,000+ per month right there.

I wouldn't like to be a landlord for sure. Fuck tenants and toilets.
You can get paid more than 5% if you buy some high yield funds like JEPI and others.
I bet someone at Fitch got a phone call from the White House from that shithead Yellen, among others, complaining about the rating downgrade.
Think it through; the US Treasury is borrowing money from Americans and foreigners to pay to welfare queens, health care for illegals, giant pensions for retired government goldbricks, etc.
You will be taxed in your retirement to just pay the interest on this debt.
Do you like the idea that you saved and invested to pay interest to foreigners?

Ratings companies are as insider as you get, and even they see the ship starting to sink. Accept reality or sink deeper into denial, choice is yours.

clambo says

the US Treasury is borrowing money from Americans and foreigners to pay to welfare queens, health care for illegals, giant pensions for retired government goldbricks, etc.

Don't forget the hundreds of billions in gifts to US weapons makers as "aid" to Ukraine.

Or the hundreds of billions to Pfizer and Moderna to poison the public and shorten their lives.

Come to think of it, the money for death jabs could actually pay off in reduced social security costs.

komputodo says

Of the 3 ratings companies, Moody's, Standard & Poor's, and Fitch, why is it always fitch that lowers ratings first?

S&P did it back in 2011, iirc.

Patrick says

Don't forget the hundreds of billions in gifts to US weapons makers as "aid" to Ukraine.
<

Forget nothing but don't spread bs either:



Also don't forget $350B of Soviet money stuck in the West which are used to pay for this adventure.

RWSGFY says

Forget nothing but don't spread bs either:

OK, hundred billion.

RWSGFY says

Also don't forget $350B of Soviet money stuck in the West which are used to pay for this adventure.

Epic foreign policy mistake.

No country will really trust the US with their assets anymore.

HeadSet says

You are joking, right? Plenty of credit unions are offering 1-year CDs that pay 5%. That would be your $1,000+ per month right there.

I know. Just bought some 3 month at 5.0% and 6 month at 5.2%.

Regular savings account should be 5% worry and effort free. A CD should pay 10% plus.

We have lived in imaginary money land for so long that some younger people don't even know what fiat money means.

RWSGFY says

Forget nothing but don't spread bs either:

When someone is obviously laundering money, do we really give a fuck about the details of the laundering?

Rubicon says

Isn’t the fitch downgrade a total nothin burger? It’s due to the risk that the debt ceiling talks result in a no-deal at some point. Which we all know they won’t.

Would anyone in their right mind buy bonds from Mexico, Canada, Germany etc over US treasuries? We are THE power house. King dollar. Nobody even comes close.

Wait, you didn't hear that BRICS is the hot shit now? =))

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A lot of this is based on what the debt payment is based on percentage of total budget and also discretionary budget.

One way to determine if it is sustainable is if debt to GDP ratio continues its downward trend to below 100%.

This will bring it to a level last observed during Obama's second term.

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Rubicon says

Would anyone in their right mind buy bonds from Mexico, Canada, Germany etc over US treasuries?

Who in their right mind would buy US treasuries?

You lose money on it every year. Another investment in just about ANYTHING else is better.

richwicks says

Rubicon says

Would anyone in their right mind buy bonds from Mexico, Canada, Germany etc over US treasuries?

Who in their right mind would buy US treasuries?

You lose money on it every year. Another investment in just about ANYTHING else is better.

Right, it's the wrong question. Why would anyone buy treasuries that are paid back with inflated fiat. Mostly foreign nations/players who are betting that the currency they are paying with devalues faster than the dollar. The Euro has actually outperformed the dollar lately again since the big dip in fall 2022, although it's in the middle of its all time channel, roughly between $0.50 and $1.50

Buffet says the rating downgrade litterally doesn't matter. It is not even worth thinking about.

mell says

Right, it's the wrong question. Why would anyone buy treasuries that are paid back with inflated fiat. Mostly foreign nations/players who are betting that the currency they are paying with devalues faster than the dollar. The Euro has actually outperformed the dollar lately again since the big dip in fall 2022, although it's in the middle of its all time channel, roughly between $0.50 and $1.50

It's because political leaders are bribed to do a bad investment. The leaders don't pay for it, the population does.

That's the scam.

That's the real reason. 40 years ago, "you had to support the United States, there's that SCARY USSR AFTER ALL!", but that ended in 1991. That's why the US is desperate to restart the Cold War in my opinion.

A logical thing to do is to collect resources. Qaddafi did this, he was killed, Hussein did this, he was killed, Assad is doing this, they are trying to kill him, Putin is doing this, they're trying to kill him, Xi is trying to do this, and we're threatening war.

The Federal reserve is our government.

Rubicon says

No other country comes even close to dethroning us. Don’t waste your time with the downgrade. It doesn’t matter.

England said the same thing at one point.

The end will be quick.

Hyperinflation isn't an economic event, it's political. What will happen is foreign nations will simply stop accepting the dollar, and will instead demand that the US purchase in THEIR currency.

The SWIFT system was state of the art, 70 years ago. It's trivial to replace now. Every transaction in US currency is basically a taxation on the transaction. The US only remains the world reserves currency as long as the majority of actual stakeholders in the modern economy believe it to be in their interest.

We have the worlds largest debt, we don't have a productive economy anymore, our financial system is filled with fraud, our military lies us into endless wars, and we're threatening Russia and China both. I won't be surprised if the State Department is controlled by a 5th column, because they can't be this fucking stupid.

“military lies us into endless wars,”

The military has no say in who they fight. ALL wars are started by politicians.

Fitch is actually the last ratings company to do this, not the first. As RWSGFY mentioned, they are about 10 years behind.

HeadSet says

“military lies us into endless wars,”

The military has no say in who they fight. ALL wars are started by politicians.

"Military analysts" are just "ex" military representing the Offense Contractors getting on television endlessly explaining on the propaganda box why we need to go to war.

Don't say the military has nothing to do with this. Colin Powell lied us into Iraq.

The military has completely betrayed the nation, every institution we STUPIDLY allow to continue to exist, has.

#Bidenomics

richwicks says

t "ex" military representing the Offense Contractors

Look at the Hunter Biden laptop memo sent to social media and mainstream media. A lot of the signatures were not Democrat ideologues and socialist kool aid drinkers like John Brennan. Some of the signatures are from Republicans, at least RINO's or "moderates" who have ties to the military establishment and contractors.

And the same RINO's are making sure Birdbrain Biden returns favors to them for signing that Hunter Biden laptop memo.

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Debt to GDP ratio continues to trend downward, it peaked at 135% and now is 118%. It was 105% when Obama left office.

Notice the steady increase in the work participate rate for those 18 to 60. That may help to lower the Debt to GDP ratio.
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ad says

richwicks says

t "ex" military representing the Offense Contractors

Look at the Hunter Biden laptop memo sent to social media and mainstream media. A lot of the signatures were not Democrat ideologues and socialist kool aid drinkers like John Brennan. Some of the signatures are from Republicans, at least RINO's or "moderates" who have ties to the military establishment and contractors.

And the same RINO's are making sure Birdbrain Biden returns favors to them for signing that Hunter Biden laptop memo.

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We're under the rule of sociopaths. They have no political ideology. They realize that war is profitable, so they make war. It's as simple as that.

There's no mission to win any war, no plan to win any war, it's just to make war and like it or not, this seems to be dominated by Zionists. I am understanding history better. These people, if you can call them that, are fucking insane. If I could kill you for 100 million dollars and get away with it without any chance of being held accountable, I wouldn't do it - of course. These assholes would, for $10.

We are honestly ruled by sociopaths and people either don't recognize it, can't believe it, or don't care. I'm tired of the cattle.

The sociopaths don’t just kill for money, they kill for power, the blood lust, and to placate their master, Satan.

I keep seeing images of that lady in The Big Short.

The bond rating funky with the medical glasses.