I’m a United States citizen. Moody gives the US a AA+ credit rating (it was downgraded from AAA in 2011).
How can this be, despite the substantial amount of debt the US holds that only continues to grow?
Is it GDP, defense capabilities, the dollar being the de facto currency almost worldwide? A combination of these? Or is there another huge factor(s) I am missing?
In: 54
Answer: Because the US can print money out of thin air to pay back their debts. Printing obscene amounts of cash won’t put a dent to demand for US dollar. So they pay their interests on time by conjuring money from thin air, that’s why their rating is so high, cause they know how to cheat the system, in fact they are the system.
Answer: Because the US can print money out of thin air to pay back their debts. Printing obscene amounts of cash won’t put a dent to demand for US dollar. So they pay their interests on time by conjuring money from thin air, that’s why their rating is so high, cause they know how to cheat the system, in fact they are the system.
I thought we were not paying on the debt itself but the interest on the debt and that we may default in the future because of the skyrocketing interest payments and that China holds over 1 trillion of our debt
Someone who has a small credit card and makes payments every month has better credit on paper than someone who pays cash for everything. But if you can afford to pay cash for everything you don’t need credit.
Answer: Because the US can print money out of thin air to pay back their debts. Printing obscene amounts of cash won’t put a dent to demand for US dollar. So they pay their interests on time by conjuring money from thin air, that’s why their rating is so high, cause they know how to cheat the system, in fact they are the system.
Someone who has a small credit card and makes payments every month has better credit on paper than someone who pays cash for everything. But if you can afford to pay cash for everything you don’t need credit.
I thought we were not paying on the debt itself but the interest on the debt and that we may default in the future because of the skyrocketing interest payments and that China holds over 1 trillion of our debt
Someone who has a small credit card and makes payments every month has better credit on paper than someone who pays cash for everything. But if you can afford to pay cash for everything you don’t need credit.
1) Whole world trades in dollars. As long as dollar is reserve currency, US will never default, b/c dollars will always be in demand.
2) Backed by largest economy & military & world, hence stability.
1) Whole world trades in dollars. As long as dollar is reserve currency, US will never default, b/c dollars will always be in demand.
2) Backed by largest economy & military & world, hence stability.
Latest Answers