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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Tenchusatsu who wrote (1414450)	8/14/2023 2:19:01 PM
From: Broken_Clock	2 Recommendations Recommended By tntpal Winfastorlose Read Replies (1) \| Respond to of 1572098

Seen this? 'Fitch Ratings caught most of Washington off guard a week ago when it downgraded the debt of the U.S. government. But it should not have. Few in positions of power on Capitol Hill or the White House could have missed federal finances spiraling out of control for years. Even the deal earlier this year to end the debt ceiling standoff did little to alter the fact that the U.S. is spending more than it earns – and that is not going to change anytime soon." “In Fitch's view, there has been a steady deterioration in standards of governance over the last 20 years, including on fiscal and debt matters, notwithstanding the June bipartisan agreement to suspend the debt limit until January 2025,” Fitch said in its Aug. 1 announcement marking down U.S. debt to AA+ from AAA. “The repeated debt-limit political standoffs and last-minute resolutions have eroded confidence in fiscal management,” Fitch added. “In addition, the government lacks a medium-term fiscal framework, unlike most peers, and has a complex budgeting process. These factors, along with several economic shocks as well as tax cuts and new spending initiatives, have contributed to successive debt increases over the last decade.” +++ "The US government could be submerged in debt over the next few decades -- something that could lead to a disaster for markets and the economy, according to Renaissance Macro Research. The research firm pointed to a recent projection from the Congressional Budget Office, which predicted the ratio of federal debt-to-GDP would nearly double from 98% in 2023 to 181% in 2053. In an alternative scenario drafted by the Committee for a Responsible Federal Budget, the debt-to-GDP ratio could soar even higher, notching 222% of GDP by 2053. Those projections depict the government "drowning in debt," Renaissance Macro analyst Stephen Pavlick said. That could spell trouble for the US given the current macro environment, where interest rates have been raised aggressively to control inflation. "CBO 30-year projection is bleak," Pavlick said in a note on Friday. "Rising debt + rising interest costs – debt servicing cost disaster."