{"type":"rich","version":"1.0","provider_name":"Transistor","provider_url":"https://transistor.fm","author_name":"Let's Appreciate","title":"The U.S. Credit Rating Downgrade","html":"","width":"100%","height":180,"duration":692,"description":"That meant despite the 2011 S&P downgrade, the US was still a AAA country. But now with the downgrade today, it is no longer the case.\n\nexpected fiscal deterioration over the next three years\n\n the government lacks a medium-term fiscal framework, unlike most peers, and has a complex budgeting process.\n only limited progress in tackling medium-term challenges related to rising social security and Medicare costs due to an aging population.\n Over the next decade, higher interest rates and the rising debt stock will increase the interest service burden, while an aging population and rising healthcare costs will raise spending on the elderly absent fiscal policy reforms.\n\n\ninterest payment/GDP is a more appropriate metric to look at\nfinances worse in 1992. It's worsened recently but nowhere near 1992.\nFitch's downgrade  is dubious but it should serve as a reminder to the US\n\na high and growing general government debt burden\n\nThe US Treasury boosted the size of its quarterly sale of longer-term debt for the first time in over 2 1/2 years, testing dealers’ appetites amid an increase in government borrowing needs so alarming it helped spur Fitch Ratings to cut the US sovereign rating from AAA.\n\nThe Treasury said it will sell $103 billion of longer-term securities at its so-called quarterly refunding auctions next week, which span 3-, 10- and 30-year Treasuries. That’s up from a $96 billion total last time, and slightly larger than most dealers had expected.\n\nPart of that deterioration is thanks to higher interest the Treasury now pays on its debt. The Treasury has also said its tax receipts have been weaker than expected. And in the meantime, the Federal Reserve’s continuing runoff of its holdings of Treasuries, of up to $60 billion a month, requires the government to sell more to the public.\n\n\n the erosion of governance relative to 'AA' and 'AAA' rated peers over the last two decades that has manifested in repeated debt limit standoffs and last-minute resolutions.\nhere...","thumbnail_url":"https://img.transistorcdn.com/9L7Z8eLaXgIxTTm8CtFGqspOjKgR503kPd8-Dl8TwDw/rs:fill:0:0:1/w:400/h:400/q:60/mb:500000/aHR0cHM6Ly9pbWct/dXBsb2FkLXByb2R1/Y3Rpb24udHJhbnNp/c3Rvci5mbS9zaG93/LzQ2NDQxLzE2OTg2/NzU2NzAtYXJ0d29y/ay5qcGc.webp","thumbnail_width":300,"thumbnail_height":300}