Following the status quo must be a wonderful and lucrative adventure.
Fitch ratings along with Standard & Poor’s and their faithful sidekick Moody’s continue to sing the praises of increasing U.S. national debt. All three are giving the U.S. triple AAA’s on the latest report card.
Fitch raised the credit rating from negative to stable after Congress suspended the nation’s debt limit for more than a year. Fitch claims this step will reduce the risk of default as federal deficits decline. That’s right, borrowing more money actually reduces the deficit. Who would of thought it?
Were the U.S government a corporation, small business or an individual, it would have filed bankruptcy years ago for failure to make payment on debt owed. The credit cards would have been revoked and AAA ratings would be a thing of the past.
In 2011 S&P downgraded the U.S. government causing bonds to rise and pushed Treasury yields to record lows. After ensuing threats from Washington Hierarchy, S&P had a change of heart and restored the rating to AAA.
As good as it looks on paper, these ratings are an outright misrepresentation of the truth. In other words, normal operating procedure.
Gold Goliath is not your typical gold dealer.