Economics/Class Relations

The US Credit Rating, Budget Deficits and Debt

Zeihan on Geopolitics

The US Credit Rating, Budget Deficits and Debt

by Peter Zeihan on October 25, 2023

We’ve all heard about the drop in the US credit rating, but what does it mean? Given the United States’ size and global standing, the resulting impact on financing costs is nominal. Think of this like your personal credit rating – sure, life’s easier with an 850 credit score, but a 700 isn’t the end of the world.

The bigger concern lies in the worsening fiscal conditions caused by growing budget deficits. With successive administrations exacerbating this issue and the Boomers transitioning from taxpayers to tax beneficiaries, the US has its hands full. And that’s before you mix in threats of the US not fulfilling its debt obligations…

The mounting uncertainty around this issue could impact credit costs and everyday financial transactions. So, unless there’s a massive shift in political responsibility and involvement, this budget deficit issue will remain hardwired into our system.

Please click below to watch video

The US Credit Rating, Budget Deficits and Debt || Peter Zeihan

YouTube Video Link:

We appreciate the interest and engagement from our followers, but with Peter’s travel schedule and sheer volume of requests, we are unable to answer non-business-related questions via e-mail.

Leave a Reply