Fitch Downgrades US Bonds from AAA to AA+

[JohnyMac]

I was not surprised this morning when I read Fitch downgraded credit rating. It was inevitable with .gov spending what it is spending. I also read that nobody is buying our bonds BUT THE FEDERAL RESERVE.

That is like your wife borrowing money from the family bank account which is financed by borrowing. 

"Rating agency Fitch downgraded the US government?s top credit rating on Tuesday, a move that drew an angry response from the White House and surprised investors.

Fitch downgraded the United States to AA+ from AAA, citing fiscal deterioration over the next three years and repeated down-the-wire debt ceiling negotiations that threaten the government?s ability to pay its bills. It is the second major rating agency after Standard & Poor?s to strip the US of its triple-A rating." - The Guardian

It is very evident that the Democrats are purposely tanking the US economy. Why? Maybe to move us by default to Central Bank Digital Currency (CBDC). Why would they want to do that? Control.

Combine control over how you spend your money and ESG to help control you, that is how. 

As was reported on the post titled,  Rumor-Biden To Declare National Emergency On Climate Change, we are moving towards a BIG EVENT similarly on the size of 9/11. What will it be?

Stay tuned,
 

[Jackalope]

    It's not looking good.  We need to consider that the U.S. economy is tanking, but so is the global economy, as the elites make their moves.  I spoke with friends in Canada last evening, and they're seeing the effects of global economic manipulation.  They've noted shortages of many goods in grocery stores.  They gave an example of a jar of honey, which was priced at $4.99 earlier this year.  That same jar of honey now costs $11.99.  The price of unleaded gas is now nearly $8.00 per gallon. 

    According to the Fitch prognosis, the U.S. will be in recession by the fourth quarter of 2023.  Looks like the tiny snowball is starting to roll downhill.  Better get any needed preps before the end of summer.

[JohnyMac]

Jackalope wrote, "Better get any needed preps before the end of summer."

Not only for supply issues but price.

Spot Brent crude this morning is at $86- a barrel up $10- a barrel since July 1, 2023. AAA average petrol price today is $3.83 a gallon. July 1, 2023 it was $3.54 a gallon. Some economists are predicting that the mid $90's is not out of the question. The downgrade will not help here.

Keep in mind that mid-August, this month, BRICS is supposed to kick in and the trading of oil and other goods will not be in US Dollars.

I suspect petrol will be at $4- a gallon by Labor Day weekend. Diesel will be at $5- a gallon too. How will this development affect supply & demand and pricing in the grocery and other stores.

 

[Jackalope]

    I agree Johny, regarding the price of goods.  I've seen the price of different commodities increase by 60% this year.  The price of rice has jumped due to the India embargo.  Disposable income is diminishing rapidly.

[Trail Ninja]

Shrinkflation is real. But I was thrilled to find 25lbs of white rice for $18 at Costco. And you guessed it, if I have a Costco, I am too close to a population dense area.

Normalcy Bias is real! My veteran coworkers are either clueless or put on a darn good pokerface.  Very few get what's going down! 

Surprised this thread, being such a Hot topic, hasn't got more activity.     This is the  that should grab your gonads!

[JohnyMac]

TN, just my opinion, we are not in a stagflation cycle as yet. Usually stagflation is accompanied by unemployment, inflation, slow growth economically, and a few other lessor factors.

Looking at the U-6 unemployment rate, which is a truer picture then the U-3, July came in at 6.7% which is about average since July 2022. Growth for Q2 was 2.4%. Q2 2022 was -1%.

What we are seeing today is not so much inflation but a devaluing of the US Currency. This eroding is reflective in spot prices of PM's. We will see gold topping the $2,100- ceiling and silver topping the $40- ceiling by the end of the year.

What is coming by the end of the month is BRICS starting and gaining steam through the remainder of the year. Wheat and rice will skyrocket due to a poor harvest in Asia and the seventh largest grower of wheat in the world, Ukraine being blocked by the Russians.

Brent crude has taken a $3- dip per barrel since the beginning of the month however, that only happened after Biden made an announcement he might tap the anemic Strategic Oil Reserves yet again. It doesn't matter, BRICS is coming into play on the 22nd of this month and if crude prices do not rise, OPEC will cut production yet again. I suspect we will see higher prices maybe breaking the $100- a barrel ceiling by November.

Then we have war not on the horizon anymore but just a pistol shot away. Again, China and Russia are holding a continuous naval exercise along the Pacific ocean. Weren't they just outside the Aleutians? They are sending a message and the average Joe & Jane out there are clueless to the messages they are sending. Who wants to bet that the next joint naval exercise will be off the California cost.

On this tangent, I still think NATO will be rolling into Ukraine by the end of the year for what ever false flag or real event happens. I also believe that China is on the verge of invading Taiwan. Oh Lord, what would a two front war bring to the globe? What if Iran joins the fight too. Europe, Asia, and the middle east would be killing fields. The Davos Crowd would love that vacuum to bring in the Great Reset. The White House would love it too, as the 2024 Presidential season approaches.

Sorry for my rambling TN. I totally agree with you that is is amazing that more people are not waking up and smelling the coffee as the pot rattles along.

 

[JohnyMac]

Oh, Moody just downgraded 10 large banks in the USA,

https://www.reuters.com/markets/us/moodys-downgrades-10-us-banks-warns-possible-cuts-others-2023-08-08/

and, gives notice on 6 more that they may be downgraded too.