Moody's on Friday changed its outlook on the U.S. credit rating to "negative" from "stable" citing large fiscal deficits and a decline in debt affordability, a move that drew immediate criticism from President Joe Biden's administration.
  • davel [he/him]@lemmygrad.ml
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    8 months ago

    My first impression as a consumer of Michael Hudson content: By the logic of the invisible hand, a drop in the credit rating will lead to a rise in treasury interest rates, which means the wealthy will move more money out of the real economy and into treasury securities.

    • davel [he/him]@lemmygrad.ml
      ·
      8 months ago

      You might call it a red herring, to give a credit rating to the government that literally prints the money. But probably a better way to think of it is as a political tool of the haute bourgeoisie.