Welcome to Home & Away. Last week, Moody’s, the widely respected international financial ratings agency, downgraded the United States. The reasoning behind its decision was straightforward: “Over the next decade, we expect larger deficits as entitlement spending rises while government revenue remains broadly flat.
I’m grateful to read through these assessments of recent political events and those in power orchestrating them. Particularly happy to get a level-headed summary that doesn’t stoke fear or animus, just the facts, and not just about one Party. Can’t wait to read about things that occurred on Wed-Thu of this pre-Memorial Day weekend.
Thank you for your comments regarding President Biden's diminished capacity. Continual secrecy was the result of denial, conspiratorial intent and professional negligence. Beyond obligation to country, party or person, where was the obligation to the citizenry, to those who'd voted, would vote again and deserved honesty? Damage on this scale will be permanent.
I was Managing Director for Sovereign Ratings at Moody's from 1986-2004. When S&P downgraded in 2011, I thought their action was premature. The present is certainly the right time, however, given the "fiscal doom loop" that will result from the conjunction of bad fiscal policy, failure to reform entitlements, population aging, and continuing high real interest rates due to investors' expectations. The fiscal outlook is serious enough to outweigh the remaining U.S. positives: a highly productive, innovative economy and the dominant international status of the dollar. I posted about the downgrade a few days ago.
Enjoy your perspective even when i don't agree. To pretend our debt crisis is more the R's fault than the D's is just partisan nonsense. The trajectory we have been on has been nonpartisan for more than a decade now and while the R's won't raise taxes and are afraid to rein in spending the D's left to their own devices will spend even more. The real problem is a public that wants all its benefits but at no cost and our politicians respond to our demands regardless of party. Also, Moody's is a joke--nothing meaningful has changed the trajectory we have been on debt wise and now suddenly they wake up--totally political IMHO
I’m grateful to read through these assessments of recent political events and those in power orchestrating them. Particularly happy to get a level-headed summary that doesn’t stoke fear or animus, just the facts, and not just about one Party. Can’t wait to read about things that occurred on Wed-Thu of this pre-Memorial Day weekend.
Thank you for your comments regarding President Biden's diminished capacity. Continual secrecy was the result of denial, conspiratorial intent and professional negligence. Beyond obligation to country, party or person, where was the obligation to the citizenry, to those who'd voted, would vote again and deserved honesty? Damage on this scale will be permanent.
I was Managing Director for Sovereign Ratings at Moody's from 1986-2004. When S&P downgraded in 2011, I thought their action was premature. The present is certainly the right time, however, given the "fiscal doom loop" that will result from the conjunction of bad fiscal policy, failure to reform entitlements, population aging, and continuing high real interest rates due to investors' expectations. The fiscal outlook is serious enough to outweigh the remaining U.S. positives: a highly productive, innovative economy and the dominant international status of the dollar. I posted about the downgrade a few days ago.
https://substack.com/home/post/p-164098614
I wish against hope that at least one week you’ll have mostly good news to report. Great piece, as always
Enjoy your perspective even when i don't agree. To pretend our debt crisis is more the R's fault than the D's is just partisan nonsense. The trajectory we have been on has been nonpartisan for more than a decade now and while the R's won't raise taxes and are afraid to rein in spending the D's left to their own devices will spend even more. The real problem is a public that wants all its benefits but at no cost and our politicians respond to our demands regardless of party. Also, Moody's is a joke--nothing meaningful has changed the trajectory we have been on debt wise and now suddenly they wake up--totally political IMHO