There they go again. Jerks at S&P and Fitch downgrade Britain's credit rating.

Haven't we seen this movie before?

Remember when the idiots at S&P downgraded the U.S. credit rating in 2011? I was on TV that morning and was pounding the table telling people to buy Treasuries.

Now you have the same idiot, S&P, plus a new idiot, Fitch, downgrading Britain's credit rating because of Brexit.

Hey you morons at the credit rating agencies...a sovereign nation that spends in its own currency and where all its obligations are denominated in that currency cannot become insolvent. There can never be an inability to pay its debts.

What idiots.

Buy gilts.

AFP —China downgrades U.S. credit rating and accuses lawmakers of holding world hostage

A Chinese ratings agency downgraded its U.S. sovereign credit rating Thursday despite Washington’s resolution of the debt ceiling deadlock, warning that fundamentals for a potential default remained “unchanged.”

Dagong lowered its ratings for U.S. local and foreign currency credit from A to A-, maintaining a negative outlook, the agency said in a statement.

The announcement came after the U.S. Congress passed and President Barack Obama signed a bill that extends the nation’s borrowing authority and ends a two-week government shutdown.

“The fundamental situation that the debt growth rate significantly outpaces that of fiscal income and gross domestic product remains unchanged,” Dagong said in the statement, adding Washington’s solvency was vulnerable as old debts were still repaid through raising new debts.

“Hence the government is still approaching the verge of default crisis, a situation that cannot be substantially alleviated in the foreseeable future,” it said. 

Dagong made headlines in August 2011 when it lowered its main rating for US sovereign debt after Congress passed an earlier bill to raise Washington’s debt ceiling.

The agency, which is far less prominent than long-established Western competitors including Moody’s, Fitch and Standard and Poor’s, has been working to further raise its profile.

China’s official news agency Xinhua said Thursday in a bylined commentary that U.S. politicians had held the rest of the world hostage in the crisis.

The Raw Story
China downgrades U.S. credit rating and accuses lawmakers of holding world hostage

Agence France-Presse

More unbridled stupidity from the rating agencies

So Moody's comes out and says this today...

"...the U.S. could lose its triple-A debt rating if next year's budget negotiations do not produce a downward trend in the country's debt-to-gross-domestic-product ratio."

Yet the St. Louis Fed says this:

“As the sole manufacturer of dollars, whose debt is denominated in dollars, the U.S. government can never become insolvent, i.e., unable to pay its bills. In this sense, the government is not dependent on credit markets to remain operational. Moreover, there will always be a market for U.S. government debt at home because the U.S. government has the only means of creating risk-free dollar-denominated assets

And S&P downgraded the U.S. credit rating last year and bond yields plunged to record lows.

Wouldn't you think that would cause Moody's and the other credit rating agencies to rethink their rationale?

No.

That's because they don't give a shit. They are arrogant; fixated on their view of the world, and consider themselves smarter and better than everyone else. I knwow, I worked at a rating agency (S&P).

Their attitude is, they don't have to read no stinkin' commentary from the St. Louis Fed. They don't have to acknowledge their deep misunderstandings about currency issuers and non-currency issuers. They don't have to admit that they got the whole, entire, subprime fiasco horribly wrong.

They're Moody's. They're S&P. They're Fitch. They can say whatever they want.