Biden’s frustrated admin crafted an ‘aggressive’ response to downgrade

Inside how Biden’s frustrated advisers crafted an ‘aggressive’ response to Fitch’s downgrade of US credit

Outreach from Fitch Ratings to the Treasury Department on Monday afternoon set off a frenzy inside the Biden administration to respond to news that would once again put President Joe Biden’s handling of the economy under the microscope.

The news from Fitch – that it would one day later downgrade the United States’ creditworthiness, the first such move by a ratings agency in more than a decade – set off a frenetic effort among Biden’s top advisers in the Treasury Department, White House and campaign to craft a response that would paint the decision as controversial, a view shared by a number of independent economists, and pinning any responsibility on Biden’s predecessor.

“The view, directly from the economic team, was that we needed to be aggressive in our response,” a senior administration official told CNN.

Another White House official, who described frustration among top aides after initially learning the news, said the administration was particularly vexed by the timing: “Why now?”

CNN

In a country notoriously addicted to borrowing money to pay it's bills (wish I could do that) it's not surprising that rating agencies would begin to downgrade US credit. Especially after the last few years of record spending due to the Covid debacle and inflation "reduction" measures put in place by the Biden administration.

What is surprising is the adversarial addetude expressed by the Biden Administration toward the ratings company and the economic down grade.

I could understand that the Biden administration would come out swinging when Donald Trump or some other top republican leader criticizes Biden and his economic policies; politics is after all politics.

But what is the justification for the frustration and aggressive addetude to economics itself? In a accountable administration the economic ratings of independent agencies would be valuable information to use to plan the polices if the Administration (follow the science and all that). However, in this administration, anyone who dares to point out that the emperor might be showing a little too much skin is aggressively dealt with?

It's not a good look for the administration. It makes them look culpable, petty and defensive.

It is especially troublesome when the independent agency states that government disfunction is at the heart of their decision to downgrade the US. To the world it is looking increasingly like our government leaders are failing us and now its costing us money .... or more importantly it's costing our children future.


PS Donald Trump couldn't fix this mess he helped cause eather.

Me thinks the best defense is a good offense. Thats why they came out swinging with ''Attitude'' Even if it is an impotent and feeble attempt, a stale strategy. The point is they dont give a F%#%^& about the truth, liability, nor fault. just scream louder and therefore correct. Such smug attitude.a reply to: dandandat2

a reply to: dandandat2

If he was the president the economy would get better instantly. Like last time . Honestly if anyone not named Joe B wins the election then the economy will vastly improve . Anyone would be a huge improvement . Just think about that . Honestly anyone .

It will get worse. And you see the hope is that once we get into a depression of some sort again, then they can come out and offer us all food (if we vote the right way) and then eventually we will all agree that the DNC is the best thing since sliced bread since the only place we can get it is from them.

a reply to: greendust

It's not just Fitchs.

Moody's today...

originally posted by: JinMI
a reply to: greendust

It's not just Fitchs.

Moody's today...

Jeez, Moodys have turned white supremicist as well? What is this world coming to?

(once again sarcasm)

Here is how you fix the credit companies. threaten them with FREEDOM. Brought to them by the US military.

originally posted by: yuppa
Here is how you fix the credit companies. threaten them with FREEDOM. Brought to them by the US military.

Heh, was just wondering if any other western nations were pondering distributing Democracy in the US.


However, to your point, I'll bet if you eliminate lending more than they have on the balance sheet, we fix this within a week.

originally posted by: JinMI

originally posted by: yuppa
Here is how you fix the credit companies. threaten them with FREEDOM. Brought to them by the US military.

Heh, was just wondering if any other western nations were pondering distributing Democracy in the US.


However, to your point, I'll bet if you eliminate lending more than they have on the balance sheet, we fix this within a week.

PRolly,but it wont be as fun.

originally posted by: dandandat2

Inside how Biden’s frustrated advisers crafted an ‘aggressive’ response to Fitch’s downgrade of US credit

Outreach from Fitch Ratings to the Treasury Department on Monday afternoon set off a frenzy inside the Biden administration to respond to news that would once again put President Joe Biden’s handling of the economy under the microscope.

The news from Fitch – that it would one day later downgrade the United States’ creditworthiness, the first such move by a ratings agency in more than a decade – set off a frenetic effort among Biden’s top advisers in the Treasury Department, White House and campaign to craft a response that would paint the decision as controversial, a view shared by a number of independent economists, and pinning any responsibility on Biden’s predecessor.

“The view, directly from the economic team, was that we needed to be aggressive in our response,” a senior administration official told CNN.

Another White House official, who described frustration among top aides after initially learning the news, said the administration was particularly vexed by the timing: “Why now?”

CNN

In a country notoriously addicted to borrowing money to pay it's bills (wish I could do that) it's not surprising that rating agencies would begin to downgrade US credit. Especially after the last few years of record spending due to the Covid debacle and inflation "reduction" measures put in place by the Biden administration.

What is surprising is the adversarial addetude expressed by the Biden Administration toward the ratings company and the economic down grade.

I could understand that the Biden administration would come out swinging when Donald Trump or some other top republican leader criticizes Biden and his economic policies; politics is after all politics.

But what is the justification for the frustration and aggressive addetude to economics itself? In a accountable administration the economic ratings of independent agencies would be valuable information to use to plan the polices if the Administration (follow the science and all that). However, in this administration, anyone who dares to point out that the emperor might be showing a little too much skin is aggressively dealt with?

It's not a good look for the administration. It makes them look culpable, petty and defensive.

It is especially troublesome when the independent agency states that government disfunction is at the heart of their decision to downgrade the US. To the world it is looking increasingly like our government leaders are failing us and now its costing us money .... or more importantly it's costing our children future.


PS Donald Trump couldn't fix this mess he helped cause eather.

Great post & I agree that Trump is as guilty as any of them for this mess.
Nothing will get better until it gets real bad .
Lazy or uninspired Gen Z is not helping the US either.
In a way I don’t blame the newer generations for giving up . Everybody knows the dice are loaded & the good guys lost . LC

a reply to: dandandat2

I could understand that the Biden administration would come out swinging when Donald Trump or some other top republican leader criticizes Biden and his economic policies; politics is after all politics.

I can’t think of any economic policies Biden had that improved the situation, a vast majority have done the opposite.

He deserves criticism as we move into elections and America has to decide our next course or action.

If we want to have a chance at turning this ship around, we better be honest with ourselves. Part of that is recognizing what a train wreck the Biden admin has been, and the other part is remembering who did the other portion of those spending policies.

What concerns me is the two choices we’ll likely have. And the fact both of them contributed to this mess. What’s equally concerning is that America is so polarized that both sides have selective memory how this all went down. The left is under the illusion that Biden slowed the bleeding and improved several metrics, mainly inflation. But the way they measure inflation just isn’t in line with how the average Americans spend a majority of their money. Things like groceries, rent, home owners insurance, utilities and a lot of other monthly expenses.

The right has a recollection that Trump has robust economic policies, and all are woes are from the Biden admin. Even here in this thread it’s implied all the spending was done by the Biden admin.

Either way that coin gets flipped, we’re screwed. They’re both known quantities when it comes to the economy. The magnetic strip is going to get wore off that credit card.