Blog/Sovereign Debt Crisis
Posted Jan 17, 2018 by Martin Armstrong
The Chinese rating agency Dagong downgraded the US creditworthiness over the tax reform. What is really a total joke is why anyone bothers to rank any government debt whatsoever when in fact there is not a single government in the world who ever intends to pay off their debt. So why does anybody rate government debt? It is not like the USA would default. Deficits mean absolutely nothing. Obama’s first four years produced deficits that were nearly $5 trillion. Trump’s Tax Reform the Democrats claim will add $1 trillion. So why was $5 trillion OK but $1 trillion is not?
The entire rating game is a joke. Nobody will ever pay off their debts so why rate something that is impossible anyway?