US Public Debt To Rise By $5.2B Every Day Next 10 Years…. BlackStone CEO: The Numbers Justify Fitch’s US Downgrade

*BLACKSTONE CEO: THE NUMBERS JUSTIFY FITCH'S US DOWNGRADE

— zerohedge (@zerohedge) August 4, 2023

US credit downgrade, another sign of a deepening crisis: The downgrade reflects the massive surge in the US federal debt, which has been driven by a series of bank and corporate bailouts accompanied by runaway military spending.

“The downgrading of the long-term credit rating of the United States by Fitch Ratings Agency on Tuesday is a significant milestone in the historic economic and financial decline of US imperialism, together with the deepening crisis within the American state.

The downgrade reflects the massive surge in the US federal debt, which has been driven by a series of bank and corporate bailouts accompanied by runaway military spending to finance endless wars.

The Fitch downgrade was from AAA rating to AA+, bringing it into line with a similar downgrade by Standard & Poor’s in 2011 following a conflict in Congress during the Obama administration over the lifting of the debt ceiling.

Speaking on behalf of Wall Street, Fitch demanded that the US government respond to the growing debt crisis with an intensified assault on the social position of the working class through the slashing of social spending.

Fitch complained that “there has been only limited progress in tackling medium-term challenges related to rising Social Security and Medicare costs due to an aging population.”

In other words, while bank bailouts and military spending may have caused the debt crisis, Wall Street’s solution is to impoverish and immiserate the vast majority of the population.

The explosion of US government debt is graphically revealed by forecasts of its size by the Congressional Budget Office (CBO).”

US public debt to rise by $5.2bn every day next 10 years pic.twitter.com/6raFrHncv9

— Mike Zaccardi, CFA, CMT 🍖 (@MikeZaccardi) August 4, 2023

U.S. debt downgrade means mortgages just got more expensive (the Fed’s Housing Bubble 2.0 is toast)

• Fitch Ratings’ recent downgrade of U.S. government debt pushed the 10-year Treasury yield to its highest level this year.
• Mortgage rates track the 10-year Treasury: When that meter rises, so do 30-year fixed rates.
• While the downgrade isn’t major cause for alarm, its ripple effects could keep mortgage rates elevated for the time being.