Blue Press Journal

Tag: economey

  • Consumer Sentiment Plummets Amid Historic Government Shutdown

    Blue Press Journal

    November 10, 2024 — Washington, D.C.

    U.S. consumer confidence has dropped to its lowest level in nearly three and a half years, as the nation grapples with the longest government shutdown in American history. According to data released Friday by the University of Michigan’s Surveys of Consumers, the Consumer Sentiment Index fell sharply to 50.3 in early November, down from 53.6 in October — a clear sign that economic anxiety is spreading across households. 

    The shutdown, now entering its second month, has been driven by a political standoff in Congress. Republican lawmakers have refused to approve funding measures that include provisions aimed at lowering health insurance costs for American consumers. The impasse has triggered widespread disruptions across basic government services and has deepened public concern about the economic fallout. 

    For millions of lower-income households, the crisis is hitting home. Cuts to essential benefits, including food stamps, have left many struggling for food. Hundreds of thousands of federal employees have been furloughed without pay, while others work without wages. Transportation systems suffer from staffing shortages, causing flight delays and grounding aircraft, affecting travelers nationwide.

    The economic uncertainty has been compounded by shifting inflation expectations and the Trump tariffs. The survey found that consumers now expect inflation over the next year to rise to 4.7%, up slightly from 4.6% in October. Long-term inflation expectations dipped to 3.6% from 3.9%, indicating cautious optimism about price stability in the years ahead, but little relief for immediate cost-of-living pressures. 

    Republican leadership and President Trump has effectively held essential services hostage, weakening the broader economy and eroding public trust in governance. Economists warn that prolonged instability could push the country toward slower growth, higher unemployment, and sustained consumer pessimism. 

  • Donald Trump, the self-proclaimed “business genius,” is Steering us into a Dumpster Fire

    Moody’s has changed its outlook on the U.S. from “stable” to “negative.

    Donald Trump proudly touts himself as a great businessman, despite a track record marred by bankruptcies and failed ventures. I mean, how does one even manage to bankrupt a casino? They have house rules designed to ensure profitability! Yet, somehow, Trump managed to pull it off.

    In a recent turn of events, Moody’s downgraded the United States’ credit rating from “Aaa” to “Aa1.” This downgrade follows a shift in the outlook for the U.S. sovereign in 2023, driven by a widening fiscal deficit and soaring interest payments. Meanwhile, the Republican-controlled Congress, under Trump’s influence, is embroiled in debates over tax and spending plans that could further deepen the nation’s fiscal abyss.

    The combination of tariffs and spending cuts proposed by Trump and his Republican allies—alongside Elon Musk’s so-called Department of Government Efficiency—has revealed a concerning lack of awareness regarding the risks associated with Trump’s policies. If left unchecked, these could very well trigger a bond market rout.

    Moody’s downgrade should serve as a wake-up call for Trump and Congressional Republicans to abandon their reckless pursuit of deficit-busting tax giveaways. Trump is actively urging lawmakers to extend the 2017 tax cuts for billionaires—his crowning legislative achievement during his first term. Nonpartisan analysts warn that this move could add trillions to the federal government’s already staggering $36.2 trillion debt.

    Moody’s has indicated that the fiscal proposals currently under consideration by Republicans are unlikely to result in a sustained, multi-year reduction in deficits. They estimate that the federal debt burden could soar to approximately 134% of GDP by 2035, up from 98% in 2024.

    Investors rely on credit ratings to gauge the risk profile of companies and governments when raising funds in debt capital markets. Generally speaking, the lower a borrower’s rating, the higher their financing costs.

    So, there you have it: Donald Trump, the self-proclaimed “business genius,” is steering the good ol’ U.S. of A. straight into a corporate dumpster fire—like a casino that forgot to deal the cards!