It’s Wednesday and there are a few topics that warrant some comment. But at the top of the topics were headlines this morning shouting out that the US treasury bonds had been downgraded by one of those self-serving credit rating agencies, as if it was an event worthy of some import. The journalists obviously do not understand anything if they think that decision was important. The ratings downgrade on US government debt is meaningless and the rating agency involved just wants to boost its revenue by sounding important. After I explain all that we will have a quiet musical reflection to finish the day....William Mitchell — Modern Monetary Theory
Ratings downgrade on US government debt is as ridiculous as it is meaningless
Bill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia
3 comments:
Xi will be calling in his loans!
JPMorganChase CEO Jamie Dimon says Fitch downgrade of US Treasure securities (on 1 Aug 2023) is meaningless and ridiculous.
“We should get rid of the debt ceiling," Dimon says. "It’s used by both parties.”
(Actually we did get rid of the debt ceiling from 1979 to 1995.)
https://www.cnbc.com/2023/08/02/jpmorgan-ceo-jamie-dimon-calls-fitch-ratings-us-downgrade-ridiculous-but-says-doesnt-really-matter.html
Dimon denigrating the Fitch thing because he wants the higher rates the Fitch thing is indirectly warning about..,
Bill carrying water for the bankers…,
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