Op-Ed: Don’t Be Fooled by the Establishment’s Panic Over US Credit Downgrade.
US Credit Downgraded: What You Need to Know
On Tuesday, the debt evaluation firm Fitch Ratings downgraded the U.S. government’s credit from AAA to AA+. This decision has sparked a flurry of reactions from economists and experts.
Fitch explained its decision in a statement, citing concerns about the rising deficit, increased government debt, and governance issues.
According to Fitch, the U.S. economy is expected to experience a mild recession due to tighter credit conditions, weakening business investment, and a slowdown in consumption.
While Fitch has downgraded the U.S. credit rating, other rating agencies like S&P Global Ratings and Moody’s have not made any changes to their evaluations of U.S. Treasury bonds.
Treasury Secretary Janet Yellen expressed her disagreement with Fitch’s decision in a news release, calling it arbitrary and based on outdated data.
Expert Reactions
Media outlets have sought the opinions of economists regarding Fitch’s decision. However, it is important to consider the biases and backgrounds of these experts.
For example, Larry Summers, former Harvard president and Obama Treasury Secretary, criticized Fitch’s decision on Twitter. However, Summers’ own tenure at Harvard ended in failure, facing a vote of no confidence.
Mohamed El-Erian, described as the chief economic adviser at financial services giant Allianz, also questioned Fitch’s move. However, the BBC failed to mention that El-Erian chaired Obama’s Global Development Council during a period of governance erosion.
The BBC also quoted Nobel Prize-winning economist Paul Krugman, who praised America’s success in controlling inflation. However, it is worth noting that Krugman endorsed Hillary Clinton in 2016.
It is clear that these economists have their own biases and may not provide a balanced perspective on the matter.
The Establishment’s Response
It is not surprising that the left’s partisan economists are critical of Fitch’s evaluation. These economists have a history of advocating for deficit spending and heavy-handed central economic management.
Furthermore, the media and Washington are reluctant to address the core economic problems that led to the downgrade, such as the growing trade deficit.
However, the markets are not fooled by these narratives, and neither should you be. It is important to critically evaluate the opinions and motivations of experts and consider the broader economic factors at play.
I am an Obama-era “political prisoner.” This article and others appear for no charge at my Substack, FreeMartyG Reports, where I cover DOJ misconduct, politics, human rights, technology and cybersecurity. Subscribe for free at this link.
The post Op-Ed: The Establishment Is Up in Arms About US Credit Downgrade, But Don’t Let Them Fool You appeared first on The Western Journal.
" Conservative News Daily does not always share or support the views and opinions expressed here; they are just those of the writer."
*As an Amazon Associate I earn from qualifying purchases
Now loading...