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Yes. A downgrade will matter. Interest rates will go up, not just for the government but, in the spirit of trickle-down economics, it will eventually impact all of us.
It hasn't happened to the United States before. But other countries have had their credit downgraded, and higher interest plus greater oversight by international interests have been the result. The inevitable result to a credit downgrade is that more of a nation's resources have to be used towards that debt, and when more resources go to the debt, there are fewer resources for other things, like infrastructure, for instance, or education. And when that happens, investors are more wary. It's a downward spiral that we want to avoid.
Yes. A downgrade will matter. Interest rates will go up, not just for the government but, in the spirit of trickle-down economics, it will eventually impact all of us.
Please explain how this relates to trickle-down economics. Thx.
Yes. A downgrade will matter. Interest rates will go up, not just for the government but, in the spirit of trickle-down economics, it will eventually impact all of us.
Liberals don't believe in trickle down economics, so all is good in their eyes.
Yes. A downgrade will matter. Interest rates will go up, not just for the government but, in the spirit of trickle-down economics, it will eventually impact all of us.
Agreed!
I think there is no doubt but that our rating will be downgraded, since 0bama and Reid have no intentions of slowing the rate of deficit spending,
Last edited by CaseyB; 07-29-2011 at 03:13 PM..
Reason: off topic
Please explain how this relates to trickle-down economics. Thx.
Since trickle-down isn't actually an economic theory but rather a strawman buzzword by those opposing anything resembling laissez-faire, you probably won't get a reliable answer anytime soon.
please try to stay on topic. I'm asking about the predicted effects of the credit downgrade, not trickle-down theory, or the size of the debt, or Obama and Reid.
I think the effect will be the complete opposite. Interest rates may rise immediately following the downgrade, but ultimately the $1 trillion or so that would be removed from the economy would cause a severe economic contraction, causing a flight to safety, and cause rates to fall.
I think the Credit rating agencies' opinions are of little value. Their AAA-rated bonds failed in 2008, and no one who manages money for a living will care that these have been downgraded.
I think the effect will be the complete opposite. Interest rates may rise immediately following the downgrade, but ultimately the $1 trillion or so that would be removed from the economy would cause a severe economic contraction, causing a flight to safety, and cause rates to fall.
I think the Credit rating agencies' opinions are of little value. Their AAA-rated bonds failed in 2008, and no one who manages money for a living will care that these have been downgraded.
Yup, this I agree with. A lot of liberal doom and gloomers who used to make fun of other conservative doom and gloomers.
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