The independent Fitch Rating Agency downgraded the investment quality rating of US Treasuries by one notch from the highest level, a AAA rate, to an AA+ rating. The first link characterizes this action as a “wake up call” to the Biden administration that its handling of the US economy and finances have weakened the creditworthiness of the US government. I agree with their downgrade decision. Years ago, the Standard and Poor’s rating agency downgraded US debt to the same degree during the Obama administration. The second link and third link offer additional perspectives on this action. The second link cites recent federal financial policies as having “eroded confidence in fiscal management,” and the third link states the downgrade was due to “rising debt,” and the “‘steady deterioration in standards of governance’ over the past two decades.” This statement puts blame not only on the Biden administration but on the presidents and Congresses of the last 20 years.
The rating downgrade is also a “shot heard round the world” in the financial markets. You can be sure that all nations and investors around the world noticed this downgrade and understood perfectly well that it means US Treasury debt has now formally been recognized as being of lower quality as a result of “Bidenomics” and the US government’s increasingly uncontrolled spending habits. The US Congress also has to share a portion of the blame in this action. The budget compromise approved on a bipartisan basis earlier this year manifested that prolonged fiscal mismanagement would be here for the foreseeable future. The fiscal agreement called for the US debt ceiling limit to be “suspended” into 2025 instead of increased to another hard limit. This action means the Congress and the Biden administration wanted to be free to spend as wildly as they want next year in an election year. This action to let the federal government spend without limit for the time being indicates to me that the government fully intends to spend a lot more, borrow a lot more and has no intention of ever paying back the US Government’s debt. This rating downgrade also moves the dial closer to the time when the US Dollar will no longer be the global reserve currency–a goal desired by the BRICS nations, as a post I did not long ago outlined.
Fitch is an independent rating agency so it has the ability to be objective in its ratings decisions. US government officials seem to have been surprised by this action and they have strongly condemned it. That is to be expected. Government officials would prefer that nobody throw the equivalent of a financial “penalty flag” on them for their mismanagement of the nations’ finances. The nations’ debt is generally reported as being about $31,000,000,000,000 and rising. Government officials and the Congress seem to have no intention of ever taking any actions toward fiscal responsibility and to start reducing the federal deficit level. Expect more trillions of dollars in federal debt to be added to that total in the years ahead of us. I truly believe that if the US government was a private corporation, its debt would be lowered to junk bond status and some court would put it into receivership. However, the government has the ability to increase taxes on corporations and individuals to at least pay off the US government’s interest payments on its debts as they come due. As the US debt levels get ever-more unpayable due to the excessive spending by the US government, it is entirely possible that we will see more ratings downgrades in the future.
This action by Fitch is a milestone on the path to when a major biblical prophecy will be fulfilled. Revelation 17-18 foretell that a global financial/monetary collapse will occur near the very end of our current age wherein mankind is allowed to govern (or misgovern) itself. This prophecy was written about 19 centuries ago, but it prophesies a global financial collapse will occur within “one hour” (Revelation 18:10,17 and 19). Such a rapid global collapse would have been utterly impossible until mankind developed a digitally-interconnected financial/monetary system such as we have today. Skeptics of the Bible need to consider that a biblical prophecy included in its language content which could only exist in the end of our age when technology would be very high. Only in a time of digitally-interconnected global financial markets could a financial collapse occur within “one hour” as is prophesied in Revelation 18. We do not know the year when this prophecy will be fulfilled and we do not know what trigger will cause the entire global financial markets to fall like dominoes within one hour. However, the downgrading of US Treasury debt recognizes that the cracks in the global financial system are becoming harder to ignore.
For those readers who wish to review an in-depth analysis of how Revelation 17-18 can/will be fulfilled in the years ahead of us, I invite you read my free article, Is “Babylon the Great” about to Fall, Ushering in a Global “Beast” System?
- https://www.newsweek.com/
biden-fitch-credit-downgrade- us-economy-1816896 - https://www.cnbc.com/2023/08/
01/fitch-downgrades-us-long- term-ratings-to-aa-from-aaa. html - https://apnews.com/article/
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