Newsline

Economy , Newsline

“Bidenomics” Meets Reality: Fitch Credit Ratings Downgrades USA

Posted on Friday, August 11, 2023
|
by Shane Harris
|
28 Comments
|
Print

AMAC Exclusive – By Shane Harris

Joe Biden at desk thinking about Bidenomics downgrade

While the Biden administration and its allies in the mainstream media are insisting that “Bidenomics” is revitalizing the U.S. economy, the first downgrade of U.S. credit in more than a decade is just the latest news to seriously undermine that claim.

Last week, Fitch Ratings, one of the “big three” ratings agencies that ranks investments based on the likelihood of default, downgraded the United States’ long-term credit rating from the highest AAA classification to AA+. The reason for the change, Fitch said, was a “steady deterioration in standards of governance.”

Furthermore, Fitch said, “repeated debt-limit political standoffs and last-minute resolutions have eroded confidence in fiscal management, while “the government lacks a medium-term fiscal framework, unlike most peers, and has a complex budgeting process.”

In other words, the U.S. government is really bad at handling money, and it’s showing no signs of improving.

The news last week marked just the second time one of the big three agencies has downgraded U.S. credit. The first was in 2011, when Standard & Poor’s downgraded U.S. debt as the Obama administration’s gargantuan spending programs began to send government debt spiraling out of control.

As The Wall Street Journal pointed out, the debt problem is far worse today than in was in 2011, and shows no signs of improving anytime soon. Whereas the ratio of U.S. debt held by the public to GDP (a measure commonly used by economists to assess a nation’s debt situation) in 2011 was 65.5 percent, that figure ballooned to 79.4 percent prior to the pandemic, and is predicted to reach 98.2 percent this year.

Following the previous downgrade, the stock market saw a sharp decline as investors bolted for the safer waters of the bond market. Although stocks look more resilient this time around, they have still dipped slightly, and public pessimism about the state of the economy remains high.

News of the downgrade couldn’t have come at a worse time for the White House and Congressional Democrats, who have been hitting the airwaves to promote “Bidenomics” – their term for the supposed economic successes of President Joe Biden. Touting low unemployment numbers and declining inflation, Democrats are hoping that their Bidenomics push will flip the script on Biden’s dreadful economic approval numbers.

But that campaign seems to be running up against the economic realities facing everyday Americans – realities that are reflected in Fitch’s credit rating downgrade. Although inflation has indeed declined, prices have not. Moreover, the rate of inflation still remains well above the Fed’s target rate of two percent, while prices for everything from a gallon of gas to a carton of eggs remain far above where they were when Biden took office, and show no sign of declining.

Democrats, however, responded to the downgrade not with self-reflection, but with defiance.

Treasury Secretary Janet Yellen called the downgrade “entirely unwarranted,” further claiming it was “arbitrary and based on outdated data.”

White House Press Secretary Karine Jean-Pierre also called into question the model Fitch used to make their assessment, before then blaming it on “extremism by Republican officials.”

Senate Majority Leader Chuck Schumer similarly blamed Republicans, saying in statement that their “reckless brinksmanship and flirtation with default has negative consequences for the country.”

Neither Schumer nor any other Democrat exhibited any sense of responsibility for the wild spending that contributed to the downgrade – or have indicated they are willing to take the necessary steps to improve the country’s credit rating.

That could be bad news as the federal deficit in the first nine months of the fiscal year hit $1.39 trillion – a staggering 170 percent increase from a year earlier. The cost of servicing the U.S. debt also jumped 25 percent in the same time period to $652 billion.

There is also a possibility that the national debt could skyrocket even higher than most economists are predicting in the years ahead.

As a shocking Goldman Sachs analysis revealed earlier this year, the actual cost of Democrats’ so-called “Inflation Reduction Act” is likely to be somewhere around $1.2 trillion – more than four times as much as the Congressional Budget Office predicted. If estimates for Democrats’ other big spending policies are also that wildly off base, the country’s debt problem could already be far worse than any official numbers suggest.

The uncomfortable truth for Biden and his fellow Democrats is that credit downgrades, high inflation, and a dismal outlook for the future are what Americans really think of when they hear “Bidenomics.” As much as they would like to manufacture the illusion of a strong economy, reality and cold, hard facts just keep getting in the way.

Shane Harris is a writer and political consultant from Southwest Ohio. You can follow him on Twitter @ShaneHarris513.

We hope you've enjoyed this article. While you're here, we have a small favor to ask...

The AMAC Action Logo

Support AMAC Action. Our 501 (C)(4) advances initiatives on Capitol Hill, in the state legislatures, and at the local level to protect American values, free speech, the exercise of religion, equality of opportunity, sanctity of life, and the rule of law.

Donate Now
Share this article:
Subscribe
Notify of
guest
28 Comments
Most Voted
Newest Oldest
Inline Feedbacks
View all comments
PaulE
PaulE
10 months ago

Obama managed to achieve the first downgrade of the United States in 2011 by Moody’s due to his reckless spending and socialist policies. Biden has managed to accomplish the same feat with Fitch in 2023, a mere 12 years later, due to his administration essentially continuing the same ruinous runaway spending and enacting the same sort of socialist policies favored by Obama and the socialists that make up the Democrat Party.

You would think the American people might have learned from the total disaster that was the two terms of the Obama administration and Democrats enacting every socialist policy they could get away with. However, never underestimate the stupidity of a large percentage of the American population to think handing over power, once again, to the Democrats would work out just fine. The trainwreck of the last 2 1/2 years could have all been completely avoided, if the American people made a better choice in November of 2020. Now we are unfortunately struck with the repercussions of that idiotic choice until at least January of 2025. Much more damage can and will be inflicted on this country between now and then by this administration. Are we having fun yet?

Robin W Boyd
Robin W Boyd
10 months ago

The U.S. credit rating has only dropped twice. Once during the Obama administration and now under the Biden puppet administration. We the People of the U.S. deserve better government than we have. Less government is better government.

Enuf Said
Enuf Said
10 months ago

Biden and the Dims do NOT care about TRUTH– Did Biden not say–“He doesn’t let facts get in the way of truth”? To add fuel to the fire- did the IDIOT Biden not say–“I got the SOB fired”? Did he not say “President Harris”? everyone knows the brain dead idiot meant Obama!!

Paul
Paul
10 months ago

When the USA Crefit Rating gets a Negative mark.
How is this a positive upgrade to our Economic Health.
The Biden Administration is insane!
The Democrats have done more damage than good.
I completely disagree with this evaluation from the DOC.
Biden Administration is Deluded!

Stephen Russell
Stephen Russell
10 months ago

Bidenomics= Depression

Rik
Rik
10 months ago

Bidenomics? . . . Jackass Joe LIES Everytime He Opens His Mouth! . . . The United States Credit Rating is TERRIBLE just like during the Obama’s years! I guess now we really know who is REALLY running Jackass Joe! After all, it was Comrade President Obama who promised to “TRANSFORM” America and Jackass Joe WAS HIS VICE PRESIDENT! Transform us to what? Communism?

R Jeffrey Savlov
R Jeffrey Savlov
10 months ago

This is just one more issue for our government. What I find disturbing is instead of removing the individual source of the issue, they are putting the blame entirely on the shoulders of the Senile in Chief. Why aren’t we using the power of government to remove those in charge of each destructive issue such as Janet Yellen, Jemore Powell et all. It would likely be easier and would attack those who are truly responsible. I believe that by useing this approach itwould show up the Democrat leadership for what they really are , using congress to interfere with the health of our financial system, the day to day operation of the country and open them all up to direct charges of Sedition which would not only remove them from power but prevent each one from partcipating in public office again.

Robert Zuccaro
Robert Zuccaro
10 months ago

The Biden family seems to be doing great financially… guess that’s what they call “Bidenomics” aka “hows the Big Guy doing?”

Steven
Steven
10 months ago

Bidenomics is an insult to our intelligence. What colleges & universities teach this garbage? We are witnessing the death of common sense.

Patricia
Patricia
10 months ago

Devil does as Devil is!

Wayne
Wayne
10 months ago

Bidenomics is wonderful! Not since the spectacular administration of Jimmy Carter have we been able to buy one item for the price of two! Can’t pay your electric bill? Put on a warm coat, build a fire outside and boil yourself a pot of coffee. Oh, cancel the campfire-it pollutes the air and causes global warming.

Jackie
Jackie
10 months ago

The Democrat Party, Soros, Obama, environmentalists and Bidenomics are the worst things that have ever happened to this country!!! Between the spending binges that Democrats always put us through with little or nothing to show for it in the end and the taxing, regulations, policies and bureaucracy that have failed us at every turn, Biden and Democrats will be the end of our country!!! Bidenomics is not good for the country; we are seeing all kinds of stores and restaurants closing and people being laid off!! If that’s what Bidenomics is all about, then we don’t need Biden or his Bidenomics!!! Bidenomics isn’t something that I would be proud of, Joe!!!

anna hubert
anna hubert
10 months ago

This is the aim of the game he is following the trail Obama blazed I do not understand what is he trying to create There already is one Africa Maybe extension of S America

Thinking
Thinking
10 months ago

The dems don’t give a damn about facts. As long as they can blame Trump their plan to destroy America goes forward. Financially America will implode on itself, then they have reached their goal of the total destruction of America. Giving 6 billion to Iran to buy freedom for 5 hostages is also part of their plan to bankrupt America. That is buying their freedom. That is the only way ole Joe knows how to rule throw money at it.

Garyk
Garyk
10 months ago

bidenomics is another word for economic disaster!
The marxist democrat party and joebama LIE!
What Citizen with a brain could possibly support the destruction of America??
Why don’t the ones who think this clown show is good for Our Country stand up instead of slinking in the background spewing all the hate and disinformation??
EVERYBODY knows the marxist democrat party has to go!

Moses
Moses
10 months ago

I would really like to read that this ssob had done one thing right since he has been in office. If he would just get up one morning and decide whatever he thinks is the right decision, do the opposite, and maybe just one of his decisions would be right. This guy is the worst president we have ever had, bar none.

Sean Rickman
Sean Rickman
10 months ago

Slowly but surely,the destruction of AMERICA by the liberal,anti AMERICA obama/biden democRAT administration.People need to wake up and contact the politicians that represent them and try to make them understand that the working class and retirees are in a big hurt because of those entities.

DenvilleSr
DenvilleSr
10 months ago

Credit card balances are increasing. Interest rates are increasing. The cost of living is increasing. Savings are decreasing. Early withdrawals from 401Ks are increasing. The nation’s credit rating is decreasing. Those facts define “Bidenomics.” Even Biden has had to admit he shouldn’t have called his most wondrous mass spending bill the Inflation Reduction Act. Of course any economist who does not let his or her giddy support of liberal political nonsense triumph over reality knows that massive government spending drives inflation. Obama is one of the puppet masters pulling Biden’s strings. As president, Obama demonstrated he cared little about us common folks. Now, as a rich guy, neither he nor his wealthy Hollywood friends need to worry about the cost of gas, food or rent. Democrat Party support of Bidenomics is like the Party’s support of the Affordable Care Act. The latter increased the cost of healthcare for many, did not allow you to keep the doctor you liked (the great Obama lie) and forced you to pay for services you didn’t need or want. It’s like a remake of an old movie.

Drue
Drue
10 months ago

Yep, the Democrats created this economic cluster screw and have turned around and blamed the Republicans. Biden’s spending with the blessing of the Senate have put our country in an economic quagmire. All the while Joe and the Biden family of thieves have raked in millions of dollars from our enemies! This man is a loose cannon on a pitching deck. How can we stop him? Hopefully, there will be enough left of our country to salvage in 2024. For the dummies that voted for Biden, I sincerely hope you have learned your lesson. If you want proof, look no farther than San Francisco, Seattle, New York City or Washington, D.C. Once beautiful cities that now look like a war zone. Look at the price of gas, the interest rate for a home loan or the cost of groceries.

JML
JML
10 months ago

Democraps.
Effin democraps!

Randall L. Beatty
Randall L. Beatty
10 months ago

This shows how the Biden people in Washington handle things and the say Trump is bad for this country Biden and the other Dems have nothing but lies for us very sad for this country we will all pay for there mistakes and they could care less

JerryLP
JerryLP
10 months ago

People who vote Democrat are also the ones “pulling the strings “, the “Takers” of our Country, and (I’m guessing) Illegal Immigrants!!

SusanP
SusanP
10 months ago

Anyone who casts a single vote for any democrat in any political race in the next 3 decades is either a blooming idiot or hates the USA. The cancer of socialism/Marxism/communism must be eradicated from our political system!

An older blonde women laughing in the kitchen with a grey haired man.
AMAC’s Medicare Advisory Service
The knowledge, guidance, and choices of coverage you’re looking for. The exceptional service you deserve.
The AMAC App on 3 different iPhone
Download the AMAC App
The AMAC App is the place to go for insightful news wherever you are and whenever you want.
American Parents Coalition logo
Flag of USA painted on an old brick wall with cracks. Rows of bricks forming the red and white stripes.
A #D map of the United States with red map pins on Minnesota, Iowa, and Wisconsin
President Joe Biden tapes an interview with Jake Tapper of “The Lead with Jake Tapper”, Tuesday, October 11, 2022, in the Map Room of the White House. (Official White House Photo by Adam Schultz)

Stay informed! Subscribe to our Daily Newsletter.

"*" indicates required fields

28
0
Would love your thoughts, please comment.x
()
x

Subscribe to AMAC Daily News and Games