Fitch Ratings has downgraded the United States government’s credit rating, citing rising debt at the federal, state, and local levels and a “steady deterioration in standards of governance” over the past two decades.

The rating was cut Tuesday one notch to AA+ from AAA, the highest possible rating. The new rating is still well into investment grade.

  • chuckleslord
    14·
    11 months ago

    It’s not impossible to default. It should be, but it isn’t due to “debt ceiling” nonsense. Political instability is the cited reason for the downgrade and, yeah, makes perfect sense why that would be.

    • John@lemmy.ca
      1·
      11 months ago

      no, I guess it’s not entirely impossible. But it’s so far disconnected from political realities that the downgrade still makes no sense. Even with political instability.

      The GOP’s owners are the ones deep in the financial system who would be harmed the most. They’ll never go through, the whole govt debt ceiling thing is their charade.

      The Democrats owners are almost in as deep, and they have nothing to gain by the charade.

      There might be political instability about lots of other topics, but there isn’t actually any about not making bond payments and blowing up the financial industry.