BIDEN ECONOMY INDICTED BY FITCH RATINGS FOR MALFEASANCE

 2 AUGUST 2023

Fitch Ratings downgraded US Treasury Bonds from its top level Triple “A” down to only double “A”.   

The mess that President Biden has spawned across our nation seemingly has no end. From one coast to the other Joe has revealed his anti-Midas touch—everything he touches turns, not to gold, but to something unpleasant that smells bad.  

Today,  under Mr. Biden, we are all unhappy with rising prices,  with high rates of borrowing, and with our inflated currency.  We are fearful of the war in Ukraine,  of the crisis at the southern border, the illegal immigrant invasion into our cities, high crime rates, worsening race relations and pervasive lack of optimism in our society.  Simply put: “Things ain’t going right”.  

How did this happen?  President  Biden’s very first policy decisions, kneecapped  a flourishing economy by unwisely and unnecessarily crippling the fossil fuel industry—the source of an ubiquitous commodity essential for almost every component of our economy. The immediate result was rampant high fuel prices. The surge in gasoline and diesel combined with supply chain problems and critical shortages, as well as Biden’s excessive and irresponsible domestic spending, all fueled a massive spurt of inflation— a crisis the nation had not experienced in 40 years. 

Inflation is a problem that still plagues us. Today,  gasoline prices have again surged over the last week by as much as 40-50 cents per gallon, locally.  Core inflation still stands at well over 4%.  But as too many forget—inflation is cumulative—each month it stays high we all lose more buying power. Over the last three years we have all lost tens of thousands of dollars in the value of our savings, our pay checks and our buying power as a result of Joe’s irresponsible mishandling of the economy. 

Of course the President, his handlers, and most egregiously the main stream media, will not  reveal these unflattering developments as they attempt to “repackage”  this unsuccessful, failing, faltering, aging president for a second disastrous term in office.  For this self-serving reason—and somehow ——speaking with a straight face—- they continue to falsely claim that the Biden “economy” is doing just fine.  But as we struggle in a nation in obvious, painful decline, we know with certainty as we try to pay our bills at the super market or the gas station— that they lie. 

Fortunately, the economists and analysts at Fitch Ratings do not do “propaganda”.  Economics— the most rigorous of the social sciences—some call the “queen of the social sciences”—is by need and design,  divorced from bias and political propagandizing.  Economists  have to toe to the “bottom line”—which is to  mathematically  determine if  some asset is profitable or not. 

Which brings me to the important news of this day; (Not President Trump’s indictment.) but the Fitch Ratings Report which has justifiably indicted the Biden Administration for economic malfeasance.  

Fitch Ratings has determined —for the first time in its history—that US treasuries can no longer be rated at the top triple A (AAA) level considered the “gold standard” and the safest possible investment. 

Fitch downgraded US notes  to the AA level.  

Fitch Ratings cites as their reasons:

 “a steady deterioration in standards of governance, 

political dysfunction, 

high debt, 

deteriorating finances, 

sharp political divisions, 

growing debt burden, 

and likelihood of a recession” .   

This downgrade has wide-ranging effects, from increasing mortgage rates borrowers must pay, to increased costs in international contracts that the US makes across the world.  

But the greatest impact is on US borrowing costs. Since the US government habitually spends so much more than it receives in taxes each year, our borrowing costs will go up.  Forced now to sell bonds of AA rate will require us to pay investors in treasury notes a higher interest rate. Borrowing will be more expensive. 

Does this sound like the “great economy” that the Biden propagandists have been touting?  I think not.

The fact is that the US must sell bonds to make up the difference between the received tax revenue versus the amount the Biden Administration has spent for this year.  

Joe has spent government cash like a sailor on shore leave. This year of 2023 Biden has spent $1.6 trillion dollars more than we received in taxes.  His billion dollar plans to pay off student loans, his unconscionable and laughable  “Inflation   Reduction Act” which was a stimulant to more  inflation,  and his inhumane and irresponsible open ended handouts  of more of than $44 billion dollars to the corrupt Zelenskyy elements in the Ukraine are only a small part of his irresponsible spending habits…noted by Fitch.   

With this change in the rating of our Treasury bond’s  we will have to pay investors more to encourage them to buy and cover our excessive spending in the tune of $1.6 trillion —so far.   The increase in bond rates alone caused by our downgrade may cost us billions of dollars extra.  

This is one story the Biden Administration and the pro/Biden media propagandists can not dissemble about—the facts are now out there.  

Though be sure the Democrats  will try to slime the professional and meticulous economists at Fitch…Expect it.