The downgrade. you a triple-a any more, and that led to the downgrade- the downgrade. you talk about the brinkmanship. the downgrade. you talk about the brinkmanship, lucky the downgrade. you talk about the brinkmanship, lucky other- the downgrade. you talk about the brinkmanship, lucky other report, | brinkmanship, lucky other report, perhaps one of the factors the january six attack, when you talk about standards of government. do you worry that by downgrading the us economy, you stoke some of that political tension? we know that the democrats blame the republicans holding the economy hostage when it came to those negotiations, and at the same time, the republicans simply blame democrats for spending too much. who is right? i simply blame democrats for spending too much. who is right? too much. who is right? i think there is blame too much. who is right? i think there is blame to too much. who is right? i think there is blame to go too much. who is right? i think there is blame to go around - too much. who is right? i think there is blame to go around on | too much. who is right? i think. there is blame to go around on all sides. i don t think it is one of the other side pass primary. the reason why the debt is so high is from both parties. and also, the polarisation makes it difficult to see if there is going to be any effort to tackle the entitlement programmes, security, medicare, there is no appetite to raise taxes,
Can do for your business. the united states previously pristine aaa credit rating has been downgraded by fitch ratings. a credit rating agency. the reason, fitch said steady deterioration and governance on fiscal and debt matters. what might that mean for you and your money? cnn s richard quest joins us. should every day americans be worried? no, not immediately. janet yellen has described this move as entirely unwarranted saying she strongly disagreed and most economists say the timing is a bit weird and bizarre on a random tuesday in august to be downgrading in this way. longer term, though, jake, yes.
Statement surely. really, this downgrading is about that and the ability to pay it back. and looks beyond any one event. it doesn t matter. the more the government goes on to deficit spending, the more rating agencies scrutinize the quality of that debt. if you thought me got to the point of no return where it was impossible to pay this debt back, you would rename the united states of america venezuela. that is what you ve got to start thinking about. it s that simple. we are nowhere near that yet. investors like me look at this every single day and say what happened there? what happened the last 24 hours. how does that change my propensity to bed on the united states of america as a long-term greg campbell where i put capital to work? not lost a little bit last night on the downgrade. i keep pointing this out to people. how can you possibly spend this in a good light? there is no good news.
I will tell you how you measure it is bad. basically, when you downgraded the u.s. economy which is what this downgrading is. you are losing a little faith in the u.s. dollar and the u.s. treasury bill. the default currency of the world defined by every commodity prized by u.s. dollars is the good faith of the u.s. government. the whole world trusted. most sovereign funds keep the majority of their liquidity in u.s. dollars. that got her 24 hours ago. now you start to ask yourself, where is this going? downgraded from aaa to aa doesn t go to a single light. if you are a sovereign wealth fund, you put that in your mind on the bottom line for you and me is the cost of capital goes up. in other words, what it cost for us to borrow money to fund the government in deficit goes up. no sugarcoating that. how does this actually affect the next 24 months? let me explain. think about that ships act and
Absolutely. and talking in the case of turkey about polarisation in the us is the case in point of political polarisation where politics seems to went over everything. and every time went over everything. and every time we get this standoff over the debt ceiling, what you have this markets reacting, you have ratings and is he talking about possible downgrading of the us dollar and that has a real world implications everywhere and in the us as well. i m beginning to wonder whether actually the debt ceiling which started off is a useful way of signalling fiscal rectitude and limits on spending has not sold a past its sell by date now and this is that the standoffs are becoming far too common. and and this is that the standoffs are becoming far too common. and that is a final thought becoming far too common. and that is a final thought from becoming far too common. and that is a final thought from you. becoming far too common. and that is a final thought from you. what - becoming far too common. and that is a final thought from you. what is - a final thought from you. what is the some of us being here again in a couple more years because it seems it is all too familiar that there is political standoffs when it comes to the economy? the political standoffs when it comes to the economy? the economy? the good news is we don t have to the economy? the good news is we don t have to do the economy? the good news is we don t have to do it the economy? the good news is we don t have to do it until the economy? the good news is we don t have to do it until after - the economy? the good news is we don t have to do it until after the i don t have to do it until after the next don t have to do it until after the next presidential don t have to do it until after the next presidential election - don t have to do it until after the