On the Downgrade

<p>It finally happened (again). U.S. Government long term debt has been downgraded from AAA to AA+, meaning the ratings agency are at least suggesting some sort of default risk for U.S. Treasuries. In case you&#39;re thinking that it&#39;s a byproduct of aggressive interest rate hikes, Fitch cited poor governance, political polarization, and a spine chilling (my word choice) government deficit. On the bright side, AA+ bonds *historically* have a low chance of defaulting on coupon &amp; principal payments; and our Q2 GDP growth did surpass expectations. I guess we&#39;ll just have to see how this plays out....</p> <p>Find us on Twitter, Instagram, Threads, &amp; Facebook @DRUNKENOMICAL</p> <p>Merch: <a href="http://drunkenomics.myspreadshop.com">drunkenomics.myspreadshop.com</a></p> <p>Patreon: <a href="http://patron.com/drunkenomics">patreon.com/drunkenomics</a></p> <p>Stay Drunkenomical y’all!</p>