econintersect.com
  • 토토사이트
    • 카지노사이트
    • 도박사이트
    • 룰렛 사이트
    • 라이브카지노
    • 바카라사이트
    • 안전카지노
  • 경제
  • 파이낸스
  • 정치
  • 투자
No Result
View All Result
  • 토토사이트
    • 카지노사이트
    • 도박사이트
    • 룰렛 사이트
    • 라이브카지노
    • 바카라사이트
    • 안전카지노
  • 경제
  • 파이낸스
  • 정치
  • 투자
No Result
View All Result
econintersect.com
No Result
View All Result

U.S. Credit Rating Affirmed

admin by admin
8월 4, 2011
in 미분류
0
0
SHARES
0
VIEWS

credit-report Econintersect:  Both Moody’s and Fitch have reaffirmed the AAA credit rating for U.S. Treasuries.  And both have warned that downgrades are still possible should the country not follow through with debt reduction measures and the economy weakens.  After Pres. Obama signed the new debt plan law on Aug. 2, Moody’s said the outlook for the U.S. credit rating is now negative.  Standard and Poors has had the U.S. on a negative credit watch since July 14 and has not joined the other two rating agencies with a reaffirmation of AAA. Many economists have warned that credit rating downgrades would put the U.S. at risk of having to pay much higher interest on its debt.  Others have pointed out that credit rating is not the overbearing determinant of interest rates.  After Japan’s credit rating was downgraded to AA- in January, interest rates there have remained even lower that the U.S.  Japan was downgraded from AAA in 2001 and the country has continued near zero interest rates ever since.

Mohamed El Erian, chief executive and co-chief investment officer of PIMCO, said the outlook for the U.S. was materially darkened in an Op Ed at The Financial Times on August 3. He said the law threatened an already fragile outlook for economic growth and job creation.  El Erian criticized the debt law as failing to provide any meaningful plan for deficit reduction but still provided all the negative implications for economic growth that a meaningful plan would have had.

Editorial note: An attempt to paraphrase El Erian:  The law provides much of the pain and little of the gain a meaningful plan would have had.

An GEI Opinion Blog article by L. Randall Wray goes a lot further into the gory details of what is happening.  Wray likened the result of the new law to be a “Rube Goldberg machine,” designed to dismantle the economic security that has been earned by the masses over lifetimes rather than reform in a manner that would make a stable society sustainable.

Sources:  Bloomberg, BBC, GEI Opinion Blog and The Financial Times

Previous Post

Ethanol Corrodes Gas Pipelines

Next Post

Elliott Waves: Potential High for Stocks and Low for Dollar

Related Posts

Bitcoin Is Finally Trading Perfectly Like 'Digital Gold'
Economics

Bitcoin Is Finally Trading Perfectly Like ‘Digital Gold’

by admin
Namibia Will Regulate And Not Ban Crypto With New Law
Finance

Namibia Will Regulate And Not Ban Crypto With New Law

by admin
6,746 ETH Valued At $12M Was Just Burned
Economics

6,746 ETH Valued At $12M Was Just Burned

by admin
Bitcoin Is Steady Above $29,000 Awaiting US NFP Figures
Economics

Bitcoin: What Next After Consolidation Ends?

by admin
US Government Offloads Another 8,200 Bitcoin – On-chain Data
Economics

US Government Offloads Another 8,200 Bitcoin – On-chain Data

by admin
Next Post

Elliott Waves: Potential High for Stocks and Low for Dollar

답글 남기기 응답 취소

이메일 주소는 공개되지 않습니다. 필수 필드는 *로 표시됩니다

Browse by Category

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized

Browse by Tags

adoption altcoins bank banking banks Binance Bitcoin Bitcoin market blockchain BTC BTC price business China crypto crypto adoption cryptocurrency crypto exchange crypto market crypto regulation decentralized finance DeFi Elon Musk ETH Ethereum Europe Federal Reserve finance FTX inflation investment market analysis Metaverse NFT nonfungible tokens oil market price analysis recession regulation Russia stock market technology Tesla the UK the US Twitter

Categories

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized

© Copyright 2024 EconIntersect

No Result
View All Result
  • 토토사이트
    • 카지노사이트
    • 도박사이트
    • 룰렛 사이트
    • 라이브카지노
    • 바카라사이트
    • 안전카지노
  • 경제
  • 파이낸스
  • 정치
  • 투자

© Copyright 2024 EconIntersect