Can the ponzi last through the next election cycle?
Fitch downgraded the United States’ long-term credit rating as expected. This is basically the reason:
Thank you Barak, Donald, Joe, Janet, Jerome, Ben, US Congress et al.
My question is, can the ponzi last through the upcoming election cycle? Instability rears its ugly head from time to time like an alcoholic realizing he is slipping into the abyss. SVB bank, commercial real estate, Fitch credit ratings....
How easy or difficult will it be for the party in power to pin it on the other party?
Oh well, I guess we'll just let the good times roll... for now.
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This conversation is too difficult for me... also, I think it's too difficult for most of the people that commented here and I also think it goes above the head of the original poster.
The only thing I want to say about this:
1. Japan has a 263% debt to GDP, and yet they still have triple A ratings. The idea that your rating is linked to the debt, doesn't seem to be working in Japans' case. But Japan has a way more stable political system. Political parties, for as far as I know, don't use a tool like the "debt ceiling" to keep their political opponents hostage and create uncertainty if debts are going to be payed. For as far as I understand this material, I think the instability hurts the rating a lot more then the debt itself.
2. It's not a ponzi scheme. With a ponzi scheme, all people that put money in are not promised a quick and fixed returns. This is not the case with taxes to keep your state working. The word "ponzi" is just a pejorative term that politicians and activists use to poison the well and make people fall for what ever political narrative that the user of the term is selling at the time.
@irishmolly72 Are we moving the goalpost now? ... your entire post is:
This is the reason why we have a bad credit rating = "debt to GDP" => Get angry at establishment
You even put Obama on there... I wonder what you expect from Obama who inherrited a crisis. Maybe he should have started harsh measures of austerity in the middle of a crisis too crack down on the debt? Impoverish the general poppulation some more when they are already struggling. Hoping that the rich will invest in an economy in a point of time that they are actively holding back on investments.
I give one counter example, showing that this correlation doesn't nescessarily work. In other words... this idea that you have the right answer, seems unlikely. I'm not going to deal with a what-about-ism and someone that starts asking questions. This is your claim, if you think that this really is the reason then it's your job to figure out why this correlation doesn't always work and you need an argument why this is working for the US. But again... you, me, we haven't worked ourselves into this toppic at all. And unlike you, I'm not going to throw stuff against the wall and see what sticks. Or start talking about a subject where I use absolute claims: "this is it!", on a toppic that I know very little about. The only thing I know, is that the people that I listen too that discuss this issue, always tell me that it's not as simple as your claim.
@Kwek00 How am I claiming that it's simple? Barack, Donald, Joe, Janet, Jerome, Ben, US Congress et al. each contributed in their own unique and admittedly complex ways.
