United States Credit Rating Downgraded by Fitch: Impact on Markets and Debt Servicing

Yesterday’s downgrading of the credit rating of the United States by Fitch caused a small panic in the markets. This is reported by the ZeRada telegram channel.

The second day in interested circles discuss why this happened and what to expect now.

“Government debt is an egg in which lies Kashchei’s needle for the United States. National debt has long been growing at a rate that no country in the world can afford, but thanks to the dollar as a reserve currency, political influence and fleets, the US continues to convince everyone that it is a reliable borrower. At the same time, it is clear to adequate economists that the United States will never repay its debt. The question is how long they will be able to serve it,” writes TC.

It is noted that just a decrease in the cost of servicing the debt to a certain extent compensated for the costs of its maintenance, and the downgrade hits the very heart of this model and increases the costs of servicing. The states will now need to go into even more debt to pay off their debts.

“Now the interest rates for the US are equal to the levels of 2009, only then the crisis was raging, and today this is already a normal state for the US. Approximately like a pressure of 200 for a person, ”stats TC.

2023-08-03 18:30:00
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