Trump Just Got The U.S. Credit Rating Revised To Negative

Discussion in 'Test/Politics Board' started by NJPSU, Jul 31, 2020.

  1. NJPSU

    NJPSU Well-Known Member
    Expand Collapse

    Joined:
    May 29, 2001
    Messages:
    30,508
    Likes Received:
    6,168
     
    CDW3333 likes this.
  2. Jason1743

    Jason1743 Well-Known Member
    Gold Member
    Expand Collapse

    Joined:
    Jan 23, 2006
    Messages:
    15,664
    Likes Received:
    9,862
    Make America Great Again - Dump Trump.
     
    MikeJones2353 and LaJolla Lion like this.
  3. tIUguy2

    tIUguy2 Well-Known Member
    Expand Collapse

    Joined:
    May 25, 2016
    Messages:
    1,584
    Likes Received:
    1,435
    I think it was you who got it revised to negative.
     
  4. SheldonJoe2215

    SheldonJoe2215 Well-Known Member
    Expand Collapse

    Joined:
    Oct 3, 2015
    Messages:
    1,744
    Likes Received:
    1,627
    Location:
    Portland, OR
    Do you have an ounce of objectivity in you?
     
    BicyclePete likes this.
  5. BoulderFish

    BoulderFish Well-Known Member
    Expand Collapse

    Joined:
    Oct 31, 2016
    Messages:
    8,441
    Likes Received:
    4,336
    Honest question... How can the USA, which prints and issues it's own currency, ever have a credit rating lower than whatever is the highest credit rating?
     
    rumble_lion likes this.
  6. WeR0206

    WeR0206 Well-Known Member
    Expand Collapse

    Joined:
    Apr 9, 2014
    Messages:
    11,709
    Likes Received:
    14,694
    Bc the people doing the ratings are idiots who don’t understand monetary sovereignty or what a currency issuer is. Our debt is denominated in our own currency so there ZERO solvency risk.
     
    rumble_lion likes this.
  7. 2lion70

    2lion70 Well-Known Member
    Gold Member
    Expand Collapse

    Joined:
    Jul 1, 2004
    Messages:
    12,450
    Likes Received:
    3,144
    Stating a fact is objective. Not accepting a fact is delusion.
     
    Gorki26, macdad25 and Grove Lion like this.
  8. 2lion70

    2lion70 Well-Known Member
    Gold Member
    Expand Collapse

    Joined:
    Jul 1, 2004
    Messages:
    12,450
    Likes Received:
    3,144
    The interest rate paid on sovereign debt has a lot to do with a credit rating. When investors lose faith in the way a country handles their finances a higher risk-adjusted interest rate is demanded.
    Trump was very good at destroying liquidity and solvency 8 times that required bankruptcy. Cutting taxes and revenue at the time he (repubs) did was complete folly - the piper is now looking for payment.
     
    PaoliLion and macdad25 like this.
  9. WeR0206

    WeR0206 Well-Known Member
    Expand Collapse

    Joined:
    Apr 9, 2014
    Messages:
    11,709
    Likes Received:
    14,694
    What piper? There is no solvency risk for the currency issuing federal govt. You can’t look at the finances for the currency issuer (fed govt) the same as you do currency users such as states, businesses, households, etc.. Anyone who does so is ignorant about basic macro econ facts.

    [​IMG]
     
    rumble_lion likes this.
  10. SheldonJoe2215

    SheldonJoe2215 Well-Known Member
    Expand Collapse

    Joined:
    Oct 3, 2015
    Messages:
    1,744
    Likes Received:
    1,627
    Location:
    Portland, OR
    Stating that it was Trump specifically that caused the debt downgrade is not 'fact' as you call it. Jesus man, words have actual and precise meanings. Try using them correctly every now and then.
     
    Conemaugh likes this.
  11. 2lion70

    2lion70 Well-Known Member
    Gold Member
    Expand Collapse

    Joined:
    Jul 1, 2004
    Messages:
    12,450
    Likes Received:
    3,144
    Read my comment again Sparky - I did not say it was tRump alone that passed the ill conceived tax cuts. The Repub House and Senate were also guilty. Those tax cuts resulted in huge reductions in revenue and resulting deficit increases in a time of economic expamsion - a very stupid thing to do.
     
    NJPSU likes this.
  12. 2lion70

    2lion70 Well-Known Member
    Gold Member
    Expand Collapse

    Joined:
    Jul 1, 2004
    Messages:
    12,450
    Likes Received:
    3,144
    The value of the US Dollar versus other currencies is falling which is also an indicator of risk.
     
    macdad25 likes this.
  13. rumble_lion

    rumble_lion Well-Known Member
    Expand Collapse

    Joined:
    Aug 7, 2011
    Messages:
    16,246
    Likes Received:
    2,918
    The interest rate paid on sovereign debt has a lot to do with a credit rating. When investors lose faith in the way a country handles their finances a higher risk-adjusted interest rate is demanded.

    Treasury investors can't demand anything. They take what the treasury offers and are more than happy to do so.
     
    WeR0206 likes this.
  14. rumble_lion

    rumble_lion Well-Known Member
    Expand Collapse

    Joined:
    Aug 7, 2011
    Messages:
    16,246
    Likes Received:
    2,918
    The value of the US Dollar versus other currencies is falling which is also an indicator of risk.

    I thought a lower dollar was a good thing because it makes our exports cheaper to buy? And it makes our imports more expensive so that benefits domestic manufactures.

    We have a free floating currency, that gives us the widest policy options.

    The dollar can't go down too much because then Boeing will just put Airbus out of business. But that will never happen because the we have a free floating currency and it will adjust accordingly.
     
    WeR0206 likes this.
  15. 2lion70

    2lion70 Well-Known Member
    Gold Member
    Expand Collapse

    Joined:
    Jul 1, 2004
    Messages:
    12,450
    Likes Received:
    3,144
    The 'market' sets the rate paid on all fixed rate investments, including Treasuries.
    Have you heard of the auctions held when Treasuries are issued - that's where the rates are set by the buyers of the securities with the US Treasury being the seller. You can look up the actual mechanics for those auctions on the Treasury website.
     
  16. 2lion70

    2lion70 Well-Known Member
    Gold Member
    Expand Collapse

    Joined:
    Jul 1, 2004
    Messages:
    12,450
    Likes Received:
    3,144
    Just think about the 'value' of a bushel of corn. The price in dollars is not a constant amount whereas the 'value' might be. So if the value is 'X' at a point in time then it will take more $s when the value of the dollar drops. A reduced value of a currency usually results in inflation.
     
  17. rumble_lion

    rumble_lion Well-Known Member
    Expand Collapse

    Joined:
    Aug 7, 2011
    Messages:
    16,246
    Likes Received:
    2,918

    Ahhh, now I see. So high inflation is a problem for us right now?
     
  18. NJPSU

    NJPSU Well-Known Member
    Expand Collapse

    Joined:
    May 29, 2001
    Messages:
    30,508
    Likes Received:
    6,168
    It is in the drive thru. . Holy crap I’m almost paying 10 bucks for a 2 piece meal these days. ;)
     
  19. 2lion70

    2lion70 Well-Known Member
    Gold Member
    Expand Collapse

    Joined:
    Jul 1, 2004
    Messages:
    12,450
    Likes Received:
    3,144
    When it takes more $$$ to buy the same item - they call it inflation.
     
  20. rumble_lion

    rumble_lion Well-Known Member
    Expand Collapse

    Joined:
    Aug 7, 2011
    Messages:
    16,246
    Likes Received:
    2,918
    Yeah, but inflation is not the price chicken nuggets.
     
  21. rumble_lion

    rumble_lion Well-Known Member
    Expand Collapse

    Joined:
    Aug 7, 2011
    Messages:
    16,246
    Likes Received:
    2,918
    And you believe that inflation in increasing this year?
     
  22. Gorki26

    Gorki26 Well-Known Member
    Silver Member
    Expand Collapse

    Joined:
    May 7, 2020
    Messages:
    1,331
    Likes Received:
    1,129
    On this board neither side accepts facts if it goes against their.
     
  23. junior1

    junior1 Well-Known Member
    Gold Member
    Expand Collapse

    Joined:
    May 29, 2001
    Messages:
    1,921
    Likes Received:
    1,678
    And he got it done all by himself. Obama didn’t leave a $20 trillion debt.....Congress didn’t pass funding bills.
    Oh and democrats aren’t pushing for $3 trillion more in spending.
     
  24. junior1

    junior1 Well-Known Member
    Gold Member
    Expand Collapse

    Joined:
    May 29, 2001
    Messages:
    1,921
    Likes Received:
    1,678
    Does trump own that chicken place? Maybe it’s his fault..profit over chicken!
     
  25. DingerzForDaze

    DingerzForDaze Well-Known Member
    Expand Collapse

    Joined:
    Jan 3, 2019
    Messages:
    9,904
    Likes Received:
    3,654
    I've explained to you, numerous times, how you're wrong about insolvency. You'd have to be a child to believe the above, and that person should never be able to opine on the topic of insolvency again (even the author himself admits his assertion is technically incorrect in a footnote, but still misses the more substantive error he made).

    Insolvency can be voluntary, for individuals, businesses and governments alike ... and there are numerous instances where a country which prints its own money would deem it more advantageous to default on its debt (and/or renegotiate terms) than it would be to print more money to pay the debt.

    Why do you insist on being ignorant?
     
  26. rumble_lion

    rumble_lion Well-Known Member
    Expand Collapse

    Joined:
    Aug 7, 2011
    Messages:
    16,246
    Likes Received:
    2,918
    and there are numerous instances where a country which prints its own money would deem it more advantageous to default on its debt (and/or renegotiate terms) than it would be to print more money to pay the debt.

    That's not involuntary is it? A country that only owes money in own sovereign currency can never be forced into insolvency.
     
    WeR0206 likes this.
  27. rumble_lion

    rumble_lion Well-Known Member
    Expand Collapse

    Joined:
    Aug 7, 2011
    Messages:
    16,246
    Likes Received:
    2,918
    The 'market' sets the rate paid on all fixed rate investments, including Treasuries.

    Treasuries follow the federal funds rate set by the Fed.

    Have you heard of the auctions held when Treasuries are issued - that's where the rates are set by the buyers of the securities with the US Treasury being the seller. You can look up the actual mechanics for those auctions on the Treasury website.

    It does look like the free market at work but the reality is different. The reserves to purchase the treasuries have already been added to the banking system by the federal government. The sales are done to drain enough reserves to allow the fed to hits it target rate. It's like shooting fish in a barrel.
     
    WeR0206 likes this.
  28. m.knox

    m.knox Well-Known Member
    Gold Member
    Expand Collapse

    Joined:
    Aug 20, 2003
    Messages:
    79,614
    Likes Received:
    34,930
    Hey rumble. Just wanted to drop you a note.

    Took a vacation day yesterday and drove up 30 miles north of here to play some golf with an old liberal friend.

    On the way there, saw at least a dozen help wanted signs........... Most are too busy collecting $600 a week to get off their asses and work.....
     
    SheldonJoe2215 likes this.
  29. rumble_lion

    rumble_lion Well-Known Member
    Expand Collapse

    Joined:
    Aug 7, 2011
    Messages:
    16,246
    Likes Received:
    2,918
    You have been on the help wanted sign thing for years now, nobody cares.
     
  30. m.knox

    m.knox Well-Known Member
    Gold Member
    Expand Collapse

    Joined:
    Aug 20, 2003
    Messages:
    79,614
    Likes Received:
    34,930
    Just telling you there are jobs out there. You seem to believe there aren't and that DADDY GOVERNMENT needs to pay people to not work. Don't be mad about it.
     
  31. rumble_lion

    rumble_lion Well-Known Member
    Expand Collapse

    Joined:
    Aug 7, 2011
    Messages:
    16,246
    Likes Received:
    2,918
    There are not enough jobs for all those who want to work.
     
  32. m.knox

    m.knox Well-Known Member
    Gold Member
    Expand Collapse

    Joined:
    Aug 20, 2003
    Messages:
    79,614
    Likes Received:
    34,930
    You made my point for me. So few want to work because the government is paying them not to work.

    Meanwhile, help wanted signs are all over the place.....

    Least you could do is ask how I golfed....
     

Share This Page