"steady deterioration" in governance

Interesting observation and one that I would says has happened in the UK as our government appears to be losing control of the country to pressure groups, bankers and the civil service

The US government’s credit rating has been downgraded following concerns over the state of the country’s finances and its debt burden.**

Fitch, one of three major independent agencies that assess creditworthiness, cut the rating from the top level of AAA to a notch lower at AA+.

Fitch said it had noted a “steady deterioration” in governance over the last 20 years.

US Treasury Secretary Janet Yellen disagrees :slight_smile:

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So does El-Erian and Summers.

https://finance.yahoo.com/news/summers-el-erian-pile-criticism-024516764.html?fr=sycsrp_catchall

Andy

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The world markets went red overnight in general and I’m guessing its this downgrade…doc

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That isn’t “deterioration”, it’s increasing Shinyness. Of course the USian honchos disagree that what is happening is “bad”, because they favor increasing Shinyness.

Steve

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Unfortunately it’s hard to disagree with Fitch on this one. We had an attempted inside coup less than 3 years ago, and that moron is trying to get power again. And that party is attempting to get us to default as well. I’d call that deterioration!

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So is Megham Markle - what have you got to worry about in the USA :slight_smile:

And let us not forget that the controlling party in one legislative house believes in passing bills to spend money but not in releasing the money to pay for those expenditures. Fitch’s “failure of governance” seems like pretty mild language.

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“Celebs” run on two things: publicity and money. Being POTUS would be ideal: in the spotlight, with people fawning over her 24/7.

Steve

I didn’t realize that credit agencies looked at anything besides the figures. From Fitch’s site:

Erosion of Governance: In Fitch’s view, there has been a steady deterioration in standards of governance over the last 20 years, including on fiscal and debt matters, notwithstanding the June bipartisan agreement to suspend the debt limit until January 2025. The repeated debt-limit political standoffs and last-minute resolutions have eroded confidence in fiscal management. In addition, the government lacks a medium-term fiscal framework, unlike most peers, and has a complex budgeting process. These factors, along with several economic shocks as well as tax cuts and new spending initiatives, have contributed to successive debt increases over the last decade. Additionally, there has been only limited progress in tackling medium-term challenges related to rising social security and Medicare costs due to an aging population.

https://www.fitchratings.com/research/sovereigns/fitch-downgrades-united-states-long-term-ratings-to-aa-from-aaa-outlook-stable-01-08-2023

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It is worth noting that Singapore has a Debt to GDP ratio of 140% while ours is 97%. Singapore maintains a AAA rating from Fitch.

I think this is likely indeed more about the Erosion of Governance and not our high debt.

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The cadence is always tax cuts for the “JCs”…sudden discovery of increased deficit…take more away from working people…more tax cuts for the “JCs”…sudden discovery of increased deficit…take more away from working people… A “bi-partisan compromise” is both: tax cuts for the “JCs”, and throwing a bone to working people.

As we have seen, the “JCs” run their own companies just as unsustainably, spending every nickle of earnings, and more, buying back stock, to juice the “JC’s” income (I won’t say “earnings”), even if it leaves the company a gutted out husk.

Steve

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You do indeed live in a corrupt country.
I’m pretty sure the solutions are:
1. Political change (not simply regime change).
2. Move to a less corrupt country (if they will take you)
3. Accept it and find a way to profit

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