On Wednesday, investor and "Shark Tank" star Kevin O’Leary made a statement attributing the recent slump in the United States' credit rating to President Joe Biden's policies.
Fitch Ratings, a member of the prestigious "Big Three" credit agencies, communicated on Tuesday that it was revising the country's long-term credit rating downwards, from "AAA" to "AA+." The reason for this downgrade was the "anticipated fiscal deterioration over the coming three years." Fitch Ratings foresees an increase in the federal government's deficit GDP to 6.3 percent in 2023, which is a 3.7 percent increase from 2022.
“It’s really about government and policy. There’s no way to sugarcoat this at all. It’s bad,” O’Leary said on Fox News. “And I’ll you how you measure it’s bad. Basically when you downgrade the U.S. economy, which is what this downgrading is, you are losing a little faith in the U.S. dollar and the U.S. Treasury bill because the default currency of the world defined by every commodity priced by U.S. dollars is the good faith of the U.S. government. And the whole world trusts it, most sovereign funds keep the majority of their liquidity in U.S. dollars. That got hurt 24 hours ago.”
O'Leary stated that the CHIPS Acts and the Inflation Reduction Act, both sanctioned by Biden, are resulting in escalated spending and causing a surge in the deficit.
“I wouldn’t say it’s the two bills that caused the camel’s back to be broken, but it was enough for them to say, ‘Ok, I’ve seen enough,'” O’Leary continued. “Now for me and you, or anybody at a kitchen table in America, your car loan just went up from five to somewhere between seven and nine percent. That’s not gonna help. So the cost of your loan and your borrowing and your mortgage? Going up, period.”
The celebrity from "Shark Tank" also countered the Biden administration's assertion that the Jan. 6 Capitol riot had undermined investors' confidence in the United States.
“I think that’s a political statement surely. I mean, really this downgrade is about debt and the ability to pay it back. It looks beyond any one event. It doesn’t matter. The more the government goes into deficit spending, the more rating agencies scrutinize the quality of that debt,” he said.
In a statement on Tuesday, Karine Jean-Pierre, the White House press secretary, disputed the credit rating downgrade as something that "defies reality." She asserted that under Biden's leadership, the United States has "delivered the strongest recovery of any major economy in the world."
The president claimed responsibility for a $1.7 trillion reduction in the deficit. However, this significant decrease primarily originated from the cessation of emergency spending due to the pandemic and an inflation-driven increase in tax revenue. According to the Balance Money, during the first year of the Biden administration, the debt increased by $1.5 trillion, marking a 5.6 percent growth year-over-year.
Trending Political News
Shania Twain Wipes Out on Stage But It's Her Next Move That Goes Viral
During her concert in Chicago this weekend, Shania Twain experienced an unexpected tumble onstage. While the 57-year-old was confidently crossing the stage, performing her song "Don't Be Stupid (You Know I Love You)" in knee-high boots, she slipped and found herself unexpectedly on the floor.
Somehow the country megastar did not miss a beat, despite the fall. A fan recorded video showed her immediately following up her fall by telling the crowd, "Don't be stupid Chicago. You know I love you," before letting out a scream.
Salma Hayek Leaves Little to the Imagination on 'National Bikini Day'
Salma Hayek is turning up the heat this summer.
The radiant 56-year-old showcased her charm in a swimsuit, marking National Bikini Day with her latest enticing snapshot.
Rollercoaster Riders Have Their Worst Nightmare Become a Reality
Eight thrill-seekers found themselves trapped upside down on a rollercoaster ride at a Wisconsin festival this past Sunday.
The incident occurred at the Forest County Festival in Crandon, located roughly 230 miles to the north of Milwaukee.
Hollywood Stars Over 60 Flaunt Their Bikini Bods
Demi Moore, Sharon Stone, and Jane Seymour are demonstrating that age doesn't limit your ability to confidently showcase your physique.
These esteemed Hollywood personalities have been utilizing Instagram in recent years as a platform to inspire younger generations to appreciate their bodies and find comfort in their own skin.
Bad News for Ben & Jerry's After Anti-American July 4th Tweet
Following a controversial statement by Ben & Jerry's, which criticized the U.S. for existing "on stolen land," the brand's consumers are advocating for a boycott akin to the Bud Light incident.
The ice cream manufacturer used its official Twitter platform to urge patrons to contribute to "returning" indigenous lands, suggesting they commence with Mount Rushmore. The post, published on Independence Day, provoked a strong backlash from social media audiences.
Major Fast Food Chain Spends Big on 'Old School' Revamp
Subway is reverting to its traditional deli-inspired practices, where customers witness their orders being prepared from whole salami or turkey logs using a slicer. The renowned sandwich chain is integrating deli slicers and freshly cut meats into its stores, marking the newest phase in its ongoing revitalization efforts.
The popular sandwich chain announced on Wednesday the incorporation of these elements into its approximately 20,000 outlets nationwide. Alongside this, Subway is broadening its "Subway Series" menu, which currently features 18 sandwiches. Four new sandwiches, specifically crafted to highlight the freshly sliced meats, will be added to the existing menu roster, as per Subway's announcement.
Leave a Reply