This has been the linchpin of the IGNORED NATIONAL DEBT CRISIS. Fitch (Fitch is one of the top three credit rating agencies internationally, along with Moody’s and Standard & Poor’s) downgraded the United States to AA+ from AAA. See https://www.investing.com/news/stock-market-news/stock-market-today-dow-down-as-us-debt-ratings-downgrade-chip-dent-in-tech-bite-3142409. This was the main impetus of the Dow Jones Industrial Average dropping more than 340 points on August 2, 2023.
Of course, JPMorgan chief executive, Jamie Dimon, said the downgrade was “ridiculous,” but that’s because once the US economy comes crashing down so does most of Wall Street and its stock prices, which means executive compensation per year may no longer be in the millions for Mr. Dimon and his compadres. Note, Mr. Dimon’s compensation for 2022 was $34.5 million. And who knows how many millions (or billions) Chase holds of the U.S. National Debt.
What is further interesting about Mr. Dimon’s comment of “ridiculous”, is how often will Chase lend money to a “small business”, if such business will NEVER repay the debt. OK, you’re probably saying, “The US Treasury is much more trustworthy than any “small business”. But is it really?
The US Treasury relies on the fact that banks, and other creditors, have no choice but to keep lending the US Treasury money, or it will be INSTANT AND OFFICIAL DEFAULT. The US National Debt will only increase, and the Treasury can do something no one else really can-PRINT MONEY. Also, the Federal Reserve Bank (FRB) can literally “create” money, with a click of a mouse and that allows the FRB to instantly lend the US Treasury billions of dollars.
U.S. Treasury Secretary Janet Yellen described the Fitch downgrade as “flawed,” saying it was “based on outdated data.” Is this lady nuts-YES! Outdated data. She’s running the largest worldwide Ponzi scheme. Secretary Yellen has no clue and no plan for paying down any of the U.S. National Debt. Hey, I’d love to be in her shoes and borrow money whenever I need it; and when repayment is required simply say, “NO WAY can I repay” and then simply borrow more “new” money to pay off the “old debt”.
And now that interest rates are on the rise, so are the interest payments on the National Debt, which simply means more borrowing will be needed to pay off interest on the old remaining debt, which will never be repaid. Do Mr. Dimon and Secretary Yellen think all Americans are idiots (and maybe many are-because if most were astute on finances, we never would have allowed accumulation of $32 trillion in National Debt, which will NEVER be paid down or paid off. We’re painted into a corner and there’s no way out of it, so all US Debt creditors are forced to keep lending money to our US Treasury.
Couple the above, with the fact that Fortune Magazine, via its blog on July 31, 2023, https://fortune.com/2023/07/31/how-big-federal-debt-deficit-treasury-bonds-auction-markets/ has stated that the current year U.S. operating deficit, for only the first nine months, has hit $1.39 Trillion and the U.S. Treasury has stated they have an increase need to borrow, so we can easily agree we are on a financial suicide march.