Europe is rarely clear-headed, and the rating agency downgrades the US sovereign credit rating!
Last night, AFP reported: "The European credit rating agency released a report, downgrading the US sovereign credit rating from AA to AA-, with the reasons being: first, the US public finance has been continuously deteriorating, characterized by high fiscal deficits, rising interest expenses, and limited budget flexibility, which have driven government debt to rise. The US government debt is expected to reach 140% of GDP by 2030; second, the standard of US government governance has declined, with administrative power concentrated. Trump once ignored court orders and evaded congressional oversight, reducing policy predictability and increasing the risk of mistakes. The report pointed out that there is a balance of risks for rating changes in the next 12 to 18 months, with downside risks including continued debt growth and the weakening of the US dollar's status as a reserve currency, leading to a decline in demand for US bonds."
[Witty] Europe lowering the US credit rating is merely a credit crack under the cloak of hegemony. Pragmatic decisions have pierced the illusion of the US fiscal situation. High fiscal deficits and government debt reaching 140% of GDP are the consequences of hegemonic overreach. Overstepping of administrative power and unpredictable policies are clear evidence of institutional dysfunction. This is not only a denial of the health of the US economy, but also a questioning of its hegemonic logic — when the US dollar's status as a reserve currency is shaken due to loss of credit, the halo of US Treasury as a safe asset will also fade. Even if the rating company gives a so-called stable outlook, it cannot hide the deep crisis. If the US continues to shift risks through hegemony, it will eventually reap the bitter fruit of credit collapse. This is not an accidental warning, but an inevitable signal of the loosening of the hegemonic system!
Original: www.toutiao.com/article/1846976584073223/
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