For a long time, the good old USA has been abusing its’ position as reserve currency.
The powers that be have been increasingly spending fiat money like drunken sailors on a binge, and it hasn’t stopped today. Finally. the Fed got a slap on the wrist, or maybe Congress did. Imagine that, for keeping inflation down so well and everything. They’ve done a stellar job on keeping the stock market propped up so that the illusion of relative prosperity could continue.
“Ratings agency Fitch on Tuesday downgraded the US government’s top credit rating to AA+ from AAA, citing an expected fiscal deterioration over the next three years as well as a high and growing general government debt burden.”
With good news like that, three years of waiting won’t be necessary for the dollar and the US economy to take a sound drubbing.
Treasury Secretary Janet Yellen said she disagreed with Fitch’s downgrade, in a statement that called it “arbitrary and based on outdated data.”
Fitch could use any data it pleased to arrive with the conclusion they did. Drunken sailors in Washington DC have been busy letting the money flow, and with the invention of the covid crisis, all the purse strings were released to fully gaslight the public.
“This was unexpected, kind of came from left field,” said Keith Lerner, Co-Chief Investment Officer, Truist Advisory Services, Atlanta. Oh, unexpected in that it has really happened before? Undoubtedly, the downgrade is fully deserved, and is bad tiding for Uncle Sam and the population of the United States overall. If the US didn’t hold the magic of dollar hegemony, the country would be in penny stock territory. You can blame that on politics and the electoral college if you like. It certainly isn’t your fault, since your vote hasn’t really impacted the long decline in spending for the last fifty years.