Trump's tax cuts may pressure U.S.'s top credit rating: Fitch

[highplainsdem]

Source: Reuters

U.S. President-elect Donald Trump's plans to slash taxes could threaten the country's triple-A credit rating over the medium term, the head of EMEA sovereign ratings at the Fitch agency said on Thursday.

"We do see increasing medium-term pressures (on the U.S. rating)," Ed Parker said at the agency's annual credit outlook conference in London.

"Even before elections the U.S had the highest level of government debt of any triple-A country. If we add on top of that Trump's plans to cut taxes by $6.2 trillion over the next 10 years that could add around 33 percent to U.S. government debt," he added.

Trump will take office on Jan. 20 but some of his promised policy changes have already sparked market and economic concern, including tax cuts, a repeal of the healthcare reform enacted under President Barack Obama and a threat to slap tariffs on companies moving jobs overseas.

-snip-

Read more: http://www.reuters.com/article/us-us-rating-fitch-idUSKBN14W17Z

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So he's going to do for the US what he did for his own credit rating...

[DetlefK]

1. Political witchhunt! The haters at the stockmarket are trying to drag him down! But guess what?

He has won! Get over it!

Seriously.

Get... get over it. Please.

This isn't funny anymore.

Do you have any idea how he treats his employees when he's in a bad mood? This guy is psycho. He's gonna fire somebody when he hears that his approval rating is at 37%. I can't afford to lose my job. I need the healthcare.

Please.

Get over it.

Oh No.

I hear him coming.

He's gonna make us do the "gold"-thing again...

[bucolic_frolic]

3. If you think it's hard to recover

a credit-based economy from recession, try doing it on the gold standard

Donnie is going to ruin the world

[bucolic_frolic]

2. He's done enough damage for 4 years already

and he's not even in office yet

[greymattermom]

4. His solution is to declare bankruptcy

and default. What happens to the US economy when we default on debt?

[BumRushDaShow]

5. If we default

that will take out China and Japan real quick too.

[DK504]

8. He doesn't give damn

he will borrow from Russia and not tell us.

[BumRushDaShow]

9. It will cost to move his tie factory out of a defaulted China

and into the newly re-Sovietized Russia.

[DetlefK]

6. That means, nobody wants to do any business with the US government any more.

No company will be willing to work for somebody who is known to not pay his debts.
No investor will be willing to buy US government bonds, because they don't know whether they will ever get their investment back.

Sure, there will always be somebody willing to do business, but they will demand massive assurances that the US will keep its word this time around.

[Javaman]

7. what happens to us? what happens to the world? nt

[hatrack]

11. We become Greece, but with delusions of grandeur and lots more guns . . .

Most of the rest of the world lands somewhere between China and Syria.

[lark]

10. That's exactly his and his Putin's plan.

Destroy the US (and therefore the world's) economy even more than done by shrub, so oligarchs can scoop up lots of real estate and stocks at bargain basement rates. He wants to destroy the power of the working class by making us virtual slaves with no public education, no healthcare, no rights, no min. wage, no overtime, no child labor laws, and everything goes to him and his fellow oligarchs. Russia wants to destroy us and Europe economically so we can't thwart them and their imperialist aggressions. Drumpf wants the Russian billions he's been promised.