Robert Kiyosaki’s Concerns About Fitch’s Downgrade of US Credit Rating
Renowned financial author Robert Kiyosaki recently expressed his concerns about the downgrade of the US credit rating by Fitch Ratings. Kiyosaki, known for his “Rich Dad” series of books, has been warning about potential economic turbulence for over a year. He believes that the Federal Reserve, the Treasury, and some corporate leaders may be disconnected from the real economic situation. Here are the key points:
- Fitch Ratings has downgraded the US Long-Term Foreign-Currency Issuer Default Rating from ‘AAA’ to ‘AA+’. This highlights concerns about the country’s fiscal stability and governance practices.
- The downgrade is a result of expected fiscal setbacks, a mounting government debt, and perceived governance lapses. The US has faced recurring debt ceiling disputes and a convoluted budgetary procedure, eroding trust in its financial stewardship.
- Fitch predicts the US general government deficit to rise to 6.3% of GDP in 2023, with the debt-to-GDP ratio expected to reach 118.4% by 2025.
- The US has foundational advantages, including a robust economy and the dominance of the US dollar as the premier global reserve currency. However, Fitch foresees a potential economic downturn in 2023-2024 due to stricter lending terms and reduced consumer spending.
- Kiyosaki took to social media to warn the public about a potential crash landing. He criticized the Federal Reserve, the Treasury, and corporate leaders for being out of touch with the real economic situation.
Hot Take: The downgrade of the US credit rating by Fitch Ratings has raised concerns about the country’s fiscal stability and governance practices. While the US possesses advantages that support its ratings, such as a strong economy and the dominance of the US dollar, there are potential economic challenges on the horizon. Robert Kiyosaki’s warning about a crash landing and his criticism of key institutions highlight the need for vigilance in navigating the current financial landscape.
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