Biden officials blame GOP 'extremism' for Moody's 'negative' credit outlook

Credit company Moody has lowered the United States money outlook from stable to negative!

Mostly because of deficits!

Democrats and The Biden Administration are blaming Republicans in Today's atmosphere, not Democrats who had full control of Congress in Biden's first 2 years when they engaged in some wild binge spending.

All kinds of dizzy wild crazy claims by spokespeople.


Biden officials blame GOP 'extremism' for Moody's 'negative' credit outlook
🤡klowndemic🤡

The Biden administration released statements Friday evening disagreeing with Moody's Investors Service changing the United States credit outlook to "negative."

Deputy Treasury Secretary Wally Adeyemo promised that President Joe Biden has proposals to cut the budget and reduce the national deficit as a result. Moody's claimed to have changed the outlook from "stable" to "negative" because fiscal deficits remained large, which is causing debt affordability to weaken significantly.

“While the statement by Moody’s maintains the United States’ Aaa rating, we disagree with the shift to a negative outlook. The American economy remains strong, and Treasury securities are the world’s preeminent safe and liquid asset," Adeyemo said in a statement. "The Biden Administration has demonstrated its commitment to fiscal sustainability, including through the more than $1 trillion in deficit reduction included in the June debt limit deal as well as President Biden’s budget proposals that would reduce the deficit by nearly $2.5 trillion over the next decade.”

a reply to: WingDingLuey

To be fair:

“In the context of higher interest rates, without effective fiscal policy measures to reduce government spending or increase revenues,” the agency said. “Moody’s expects that the US’ fiscal deficits will remain very large, significantly weakening debt affordability.”

So, the Federal Reserve head raised interest rates, making it harder for Americans to afford their debts, in the shadow of the national debt.

Also....

Brinkmanship in Washington has also been a contributing factor, Moody’s said.

“Continued political polarization within US Congress raises the risk that successive governments will not be able to reach consensus on a fiscal plan to slow the decline in debt affordability,” the ratings agency said.

Republicans threatening to let the government shut down, and not pay the bills, isn't helping either.

www.nbcnews.com...

None of this is good for any of us.

originally posted by: WingDingLuey
Democrats and The Biden Administration are blaming Republicans...

No surprise there. An election is coming and they have to try to shift the blame.

a reply to: WingDingLuey

So "Build Back Better" (I personally call this administration's economic policies "Be Broke Together") is the fault of the party not currently in power?

a reply to: Sookiechacha

And what were the Republicans looking to get again? Budget cuts! Do not act like there was any fiscal restraint on the part of the dems. Deflect, deflect. The administrations addiction to spending is what got us here, but then again these are the same people telling us the economy is booming!

Don't worry, there's a war on the horizon, the great savior of economies. Biden or Trump doesn't matter, whoever they choose (Trump) to "win" the election will "win" and they will do as they're told. War is good for business and America is owned by the wealthy corporations. What's good for business is usually bad for the average Joe.

Funny how war is always somewhere around the corner when the American economy is trending downward, it's a tale as old as time. Meanwhile the rich continue to get richer.

Sooooo ...

If the Biden administration is overvaluing the state of the US economy, does that mean that a New York prosecutor can charge him with fraud, or would that be a federal prosecutor?

No one is above the law, right?

originally posted by: Sookiechacha
So, the Federal Reserve head raised interest rates, making it harder for Americans to afford their debts, in the shadow of the national debt.

The credit rating shoudl've been negative, when both parties discovered they could kick the fiscal can.

Interest rates? Should've been inched up starting in the Obama administration. Instead rates were kept way too low, way too long. Now we effectively have an aircraft carrier coming into port at full speed, with this on the bridge:


Going to be hard to engineer a soft landing this time.

Probably wouldn't be so bad to spend so much money if instead of wasting it all on ESG, DEI and "green" scams they built, I dunno, a textile mill or something. Anything productive really. In one of those crappy places with run down buildings and through the roof unemployment. You know, actual investment in the economy?

Oh well.

a reply to: Lumenari

Love it! " Be Broke Together"

a reply to: Sookiechacha

The government isn't going to shut down. Just be pushed as such maybe for some polling points.

The democrats are projecting.

The biden administration almost immediately reversed all of Trump's policies after stealing office. Trump was trying to close the trade deficit with China, and after biden stole office they stopped the trade war and started running a deficit again.

Trump wanted to close the border because illegal immigrants just cost money. They need housing, food, healthcare, their kids go to school on the taxpayer's dime, they use every conceivable low income benefit that they can get thier hands on. And what do they do? They work under the table picking cabbage for less than minimum wage. That's not enough to pay for all the benefits they receive. Illegal immigrants are a net drain on the economy.

And yet, millions continue pouring across our border because the democrats stopped the wall and even tore down sections of it.

War costs money, and we are waging a useless proxy war against Russia.

Our defense budget is hugely bloated and more than the defense budget of the next 10 countries combines. Year after year the Pentagon fails spending audits and in fact the department of defense has NEVER passed an audit! They can't account for over 4 trillion dollars in assets that are just vapor and auditors cannot find them!

Yet the federal government - both sides of the aisle - would rather cut medicare and social security because "entitlements are the problem"

The USA is one of the few developed countries in the world that doesn't provide its citizens with universal healthcare. The USA also has the highest cost of living by far - with housing, healthcare, and education being some of the most expensive in the world.

Our country provides its citizens with less than most other countries, but "entitlements are the problem"

I think entitled rich people are the problem.

My point? This wouldn't have happened if Trump had his second term. He would have closed the trade deficit, stopped the illegal immigration, and started building industry again so our citizens could have jobs.

Instead we got an drooling buffoon who only knows how to spend other people's money.

a reply to: hangedman13

All I'm saying is that it's more complicated than just blaming the national debt for our negative rating. And, that the FED has a lot to do with it too.

www.msn.com...

“Going forward, it may be that a greater share of the progress in reducing inflation will have to come from tight monetary policy restraining the growth of aggregate demand,” he said.

Powell said he and his colleagues expect economic growth to moderate in coming quarters, but that remains to be seen.

In his remarks, Powell also announced that the Fed will conduct a formal review of its interest-rate policy framework in the second half of 2024. Some former Fed staffers and outside economists hope the central bank will use this regular 5-year review to consider raising its 2% inflation target, or at least make it a range.

Great job Chairman Powell! /sarc

a reply to: Sookiechacha

We are blaming the people currently in charge of our economy for the state of our economy.

This isn't rocket science.

It's reality.

a reply to: Lumenari

So, The FED.

What is the purpose of the Federal Reserve System?

The Federal Reserve System, often referred to as the Federal Reserve or simply "the Fed," is the central bank of the United States. It was created by the Congress to provide the nation with a safer, more flexible, and more stable monetary and financial system. The Federal Reserve was created on December 23, 1913, when President Woodrow Wilson signed the Federal Reserve Act into law. Today, the Federal Reserve's responsibilities fall into four general areas.

Conducting the nation's monetary policy by influencing money and credit conditions in the economy in pursuit of full employment and stable prices.

Supervising and regulating banks and other important financial institutions to ensure the safety and soundness of the nation's banking and financial system and to protect the credit rights of consumers.

Maintaining the stability of the financial system and containing systemic risk that may arise in financial markets.

Providing certain financial services to the U.S. government, U.S. financial institutions, and foreign official institutions, and playing a major role in operating and overseeing the nation's payments systems.

www.federalreserve.gov...

Chair of the Federal Reserve

The current chairman is Jerome Powell, who was sworn in on February 5, 2018. He was nominated to the position by President Donald Trump on November 2, 2017, and later confirmed by the Senate. He was subsequently nominated to a second term by President Joe Biden, later confirmed by the Senate and sworn in on May 23, 2022

en.wikipedia.org...

a reply to: Sookiechacha

I understand the Federal Reserve system cat lady... a lot more than you do.

They were put into play by Wilson in 1913 (how he got elected, you should look up his apology to the nation on his death bed), are privately owned, have no official overseeing by our Congress and were put there for the express purpose of transferring all the actual wealth of this country from the citizens to the owners of the Federal Reserve.

It is our Central Bank.

Think harder.

a reply to: Lumenari

I understand the Federal Reserve system cat lady... a lot more than you do.

You probably do. But, as the article I posted says, Moody's is partly blaming this on the fact, as I understand, that people can't afford to take on any more debts, like mortgages, car payments and credit cards, due to high interest rates, that the FED levied to protect the economy from inflation.

And yes, political instability has a lot to do with it too.

a reply to: WingDingLuey

Don't you just love how they call not spending as much as they planned to spend a deficit reduction? In my book, a deficit reduction is paying off some of that loan, not just increasing it a little less.

SPAM