It’s the debt that caused the markets to drop. Our political leaders didn’t fix anything, didn’t stop spending, they just kicked the can down road a year or so. Everyone knows it.
The U.S. media has been bending over backwards trying to find some other reason that the markets went tumbling the day after the Obama administration raised the dept ceiling another 2.4 T$. There isn’t one. Let’s go with Occam’s Razor and surmise that the most obvious explanation is likely correct. People that understand economics and economies looked at what just happened and figured it was time to get out of the U.S. stock markets. I would.
Already, Dagong Global Credit Rating, a Chinese ratings firm, downgraded the U.S.’ rating Wednesday, noting that the nation’s debt is growing faster than its economy.
If that’s not enough, so would Standard and Poor’s, who lowered the United States credit rating. It remains to be seen what ripple effects that will have. But all of this is a direct result of the government deciding to write themselves a check for 2.4 trillion dollars, on top of the 14.5 trillion dollars we already owe.
We had one last chance to turn it around. Now comes the fallout of the failure.