Fitz Begins to Warn of the Recession
Fitz argued that it was very likely that this debt would reach 180% of the GDP.
In the world, there are three private companies responsible for providing ratings to companies and country bonds. These ratings analyze the likelihood of these entities being able to pay their debts. The companies I'm talking about are Moody's, S&P, and Fitz. All of these companies are American, and historically, they have given a AAA rating to the U.S. debt (except for S&P, which gives AA+).
This is due to several reasons:
Most countries hold U.S. debt, and if these bonds were to default, it would cause a global catastrophe. In fact, what they assess is that it is more likely for the U.S. debt to be paid than the debt of other countries, rather than whether the U.S. will pay or not.
Among the countries with a AAA rating are Switzerland, Liechtenstein, Singapore, all of which are very small countries, and their bonds could not be bought by other countries as is the case with U.S. bonds.
The only 'large' country with a AAA rating on its bonds is Germany. The main problem is th…