{"id":1989786,"date":"2023-08-03T14:14:02","date_gmt":"2023-08-03T18:14:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/op-ed-the-establishment-is-up-in-arms-about-us-credit-downgrade-but-dont-let-them-fool-you\/"},"modified":"2023-08-03T14:15:43","modified_gmt":"2023-08-03T18:15:43","slug":"op-ed-the-establishment-is-up-in-arms-about-us-credit-downgrade-but-dont-let-them-fool-you","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/op-ed-the-establishment-is-up-in-arms-about-us-credit-downgrade-but-dont-let-them-fool-you\/","title":{"rendered":"Op-Ed: Don&#8217;t Be Fooled by the Establishment&#8217;s Panic Over US Credit Downgrade."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fop-ed-the-establishment-is-up-in-arms-about-us-credit-downgrade-but-dont-let-them-fool-you%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1989786&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>US Credit Downgraded: What You Need to Know<\/h2>\n<p>On Tuesday,\u2064 the debt \u2063evaluation firm Fitch Ratings downgraded the U.S. government\u2019s credit from AAA\u2064 to AA+.\u2062 This \u200bdecision has sparked a flurry\u200d of reactions from economists and experts.<\/p>\n<p>Fitch explained its decision in\u2063 a <a href=\"https:\/\/www.fitchratings.com\/research\/sovereigns\/fitch-downgrades-united-states-long-term-ratings-to-aa-from-aaa-outlook-stable-01-08-2023\" target=\"_blank\" rel=\"noopener\">statement<\/a>, citing concerns about the rising deficit, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/comparing-trump-and-bidens-covid-relief-bills\/\" title=\"Comparing Trump And Biden\u2019s COVID Relief Bills\">increased government debt<\/a>, and governance issues.<\/p>\n<p>According to Fitch, the U.S. economy\u2064 is \u2064expected to experience a mild recession due to tighter credit conditions, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fitch-downgrades-us-credit-rating-biden-officials-strongly-disagree\/\" title=\"Fitch lowers US credit rating; Biden officials disagree.\">weakening business investment<\/a>, and\u200c a slowdown in consumption.<\/p>\n<p>While Fitch has downgraded the U.S.\u2063 credit rating, other \u200brating agencies like S&#038;P \u2062Global Ratings\u200b and Moody&#8217;s\u200c have not made any changes to their evaluations of U.S. Treasury bonds.<\/p>\n<p>Treasury Secretary Janet Yellen \u2062expressed her disagreement \u2063with Fitch&#8217;s decision in a <a href=\"https:\/\/home.treasury.gov\/news\/press-releases\/jy1665\" target=\"_blank\" rel=\"noopener\">news release<\/a>, calling it arbitrary and based on\u2062 outdated data.<\/p>\n<h3>Expert Reactions<\/h3>\n<p>Media outlets have sought the opinions of economists\u2062 regarding Fitch&#8217;s decision. However, it \u2062is important to consider the biases and backgrounds of\u2063 these experts.<\/p>\n<p>For\u2062 example, Larry Summers, former Harvard \u2062president and Obama Treasury \u200dSecretary,\u200c criticized Fitch&#8217;s decision on\u2063 Twitter. However, Summers&#8217; own tenure at Harvard\u2062 ended in failure,\u2062 facing a vote \u200cof no\u2063 confidence.<\/p>\n<p>Mohamed El-Erian, described as \u200dthe <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fncs-hilton-biden-presidency-dead-this-is-an-ex-presidency\/\" title=\"FNC's Hilton: Biden Presidency 'Dead' -- 'This Is an Ex-Presidency'\">chief economic adviser<\/a> at financial services giant Allianz, also questioned Fitch&#8217;s move. However, the BBC \u2062failed \u2064to mention that El-Erian\u2063 chaired Obama&#8217;s Global Development Council during a period of governance erosion.<\/p>\n<p>The BBC also quoted Nobel Prize-winning economist Paul Krugman,\u2064 who praised America&#8217;s success in \u2062controlling inflation. \u2063However, it\u2062 is worth \u200bnoting that Krugman endorsed Hillary Clinton in 2016.<\/p>\n<p>It is \u200dclear that these economists have their own \u2063biases and may not provide a\u2062 balanced perspective on the matter.<\/p>\n<h3>The Establishment&#8217;s Response<\/h3>\n<p>It is not surprising that the left&#8217;s\u2062 partisan economists are critical of Fitch&#8217;s evaluation. These economists \u2063have a history of advocating for deficit spending and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/op-ed-the-establishment-is-up-in-arms-about-us-credit-downgrade-but-dont-let-them-fool-you\/\" title=\"Op-Ed: Don't Be Fooled by the Establishment's Panic Over US Credit Downgrade.\">heavy-handed central \u2062economic management<\/a>.<\/p>\n<p>Furthermore, the media and \u2063Washington are reluctant to address the core economic \u2064problems that led to the downgrade, such as the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/u-s-trade-deficit-soars-to-new-record-high\/\" title=\"U.S. Trade Deficit Soars to New Record High\">growing trade deficit<\/a>.<\/p>\n<p>However, the markets are not fooled by these narratives, and \u200dneither should\u2063 you be. It is important to critically evaluate \u2062the opinions and motivations of experts\u2064 and consider\u200b the \u2062broader economic\u2063 factors at play.<\/p>\n<p><em>I am\u200d an Obama-era\u200c \u201c<a href=\"https:\/\/www.google.com\/url?sa=D&#038;q=https:\/\/www.creators.com\/read\/michelle-malkin\/01\/22\/freemartyg-exposing-americas-secret-prisons&#038;ust=1691169360000000&#038;usg=AOvVaw07b_aMBEJPYCk1XrhbVrjY&#038;hl=en&#038;source=gmail\" target=\"_blank\" rel=\"noopener\">political\u2064 prisoner<\/a>.\u201d This article and others appear for no charge at my \u2062Substack, FreeMartyG\u2062 Reports,\u200c where I cover DOJ misconduct,\u200b politics, human rights, technology and\u2062 cybersecurity. Subscribe for free at \u2063 <a href=\"https:\/\/martyg.substack.com\/\" target=\"_blank\" rel=\"noopener\">this\u2063 link<\/a>.<\/em><\/p>\n<p>The post <a rel=\"nofollow\" href=\"https:\/\/www.westernjournal.com\/op-ed-establishment-arms-us-credit-downgrade-dont-let-fool\/\">Op-Ed: The\u2063 Establishment\u200c Is Up \u200cin Arms \u2064About US Credit \u200bDowngrade, But Don&#8217;t Let Them Fool You<\/a> appeared \u200dfirst on <a rel=\"nofollow\" href=\"https:\/\/www.westernjournal.com\">The Western Journal<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On Tuesday, Fitch Ratings downgraded the US government&#8217;s credit from AAA to AA+. Nasdaq dropped 2.17 points, S&amp;P 500 fell 1.38 points, and Dow declined slightly. Fitch justified the decision, citing an expected increase in the general government deficit to 6.3% of&#8230;<\/p>\n","protected":false},"author":2198,"featured_media":1989787,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[548],"tags":[],"class_list":["post-1989786","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-conservative-news-daily"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1989786","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2198"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1989786"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1989786\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1989787"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1989786"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1989786"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1989786"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}