The White House and its mainstream media allies are doing their best to shrug off the shocking news that the U.S. credit rating was downgraded on Tuesday. But “Shark Tank” star Kevin O’Leary is having none of the leftist narrative.
Instead, the chairman of O’Leary Ventures told Fox News that there is no way to sugarcoat the distressing news. “It’s bad.”
The investor explained, “I’ll tell 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.”
'NO GOOD NEWS': "Shark Tank" star @kevinolearytv weighs in on the significance of the US credit rating downgrade and what it means for your bottom line. pic.twitter.com/9CxGxbnFSn
— FOX Business (@FoxBusiness) August 2, 2023
O’Leary noted that most funds preserve a majority of their liquidity in the U.S. dollar because it is the benchmark for fiscal safety. But no more.
Now sovereign funds and major investors have to question where this trend will lead. Is the move by powerful credit firm Fitch Ratings a sign that the dollar will continue to lose strength and “full faith and credit” does not have the meaning it once had?
Fitch downgraded the long-term foreign currency issuer default rating for the U.S. to AA+ from AAA on Tuesday. It said that “the repeated debt-limit, political standoffs and last-minute resolutions have eroded confidence in fiscal management.”
O’Leary explained the next 24 months will be critical as the nation attempts to navigate its way through the frivolous spending by the Biden administration.
The investor noted that the government has to print billions of dollars for the CHIPS Act and the Inflation Reduction Act.
This massive spending obviously swells the deficit, which is already growing at a record pace. This, O’Leary observed, is the core of why Fitch downgraded the nation’s credit status.
All of this spending combined with the Federal Reserve’s interest rate hikes combined to push prices higher for ordinary Americans. O’Leary told Fox News that a family’s car loan interest has jumped from 5% to somewhere between 7-9%.
And that’s not counting increased costs due to the credit rating downgrade. The number one expense for U.S. families, mortgages, are also skyrocketing.
Fitch and any reasonable observer can see that Biden’s financial irresponsibility is harming the consumer in unprecedented ways. It is shameful that the nation’s “full faith and credit” has taken such a hit, but this administration has no one but themselves to blame.
