36
Bonds go bonkers as the US government now pays more than Vietnam or Morocco to borrow
(markets.businessinsider.com)
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
this post was submitted on 15 Nov 2023
36 points (81.0% liked)
World News
32326 readers
510 users here now
News from around the world!
Rules:
-
Please only post links to actual news sources, no tabloid sites, etc
-
No NSFW content
-
No hate speech, bigotry, propaganda, etc
founded 5 years ago
MODERATORS
People do not make fun of the US for having their credit rating downgraded nearly enough. Imagine being the wealthiest country in history with control over the most ubiquitous reserve currency on the planet and the credit rating agencies are like “it’s not that we don’t trust you, but we have standards to maintain.”
The ratings agencies basically said a Republican Congress and a Democratic President is the biggest risk to debt repayment. It isn't that the government doesn't have the money, but that it won't spend it.
That’s the point. The US has effectively unlimited money, or let’s say unlimited liquidity, so their ability to repay is purely based on political issues. That they can’t get their shit together enough politically to avoid their own borrowing costs going up is extremely funny and embarrassing.