The Greater Financial Crisis of 2024

August 09, 2023

by James Rickards Daily Reckoning

You’re probably aware that Fitch has downgraded the credit rating of the United States from AAA to AA+. It was big news last week.

That’s nothing to cheer about, though it’s not likely to have much impact on the markets in the short run. It’s more of a long-term problem.

But it’s certainly another straw in the wind showing that the U.S. is on a non-sustainable fiscal course that can only end in default, hyperinflation or protracted depression-level growth.

Meanwhile, another major credit ratings agency, Moody’s, has just issued its own downgrades that may foretell a much more immediate threat.