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A comment on Fitch downgrades U.S. after debt limit stalemate. Parent comment

Re:Fitch downgrades U.S. after debt limit stalemate by stephen_g on Wednesday August 02, 2023 @08:02AM (#36969680)
Credit ratings of countries that control their own central bank and only issue bonds in their own currency are kind of just make-believe. They only matter as much as people play along…

Although the debt limit thing is a risk, there’s no practical or financial reason why the US would ever default on its bond payments, but the debt limit brinkmanship creates a potential to default due to politics (for no real reason).

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Re:Fitch downgrades U.S. after debt limit stalemate by jwestbury on Wednesday August 02, 2023 @08:27AM (#36969932)
They're not make-believe. Plenty of insurance companies and pension funds can only invest in AAA-rated investments. Will their policies change to accommodate downgrades? Possibly. But there's a very real risk of lessened demand for treasuries.
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