Welcome to the economic update. My name is Sean Morgan. I'm the host of the Sean Morgan Report on AMP News. I'm here with Dr. Kirk Elliott.

So, Kirk, you know, I saw in the news the U.S. treasuries, like the safest investment on planet Earth, supposedly just downgraded by Fitch, the biggest rating agency.

Warren Buffett's buying treasuries despite that. I mean, so is this just a matter of

perception? What do you think about this news? Well, I think it's actually really big. It's actually

huge news. So when you think about it, the world's reserve currency, which is still the U.S.

dollar, has to have the best credit rating available.

I mean, it has to, right?

But if we don't, I think they're setting the stage for us not being the world's reserve currency.

Right.

So we had AAA got downgraded to double A plus is what it did. So it's a downgrade. Now, let's compare that to like a

regular bond market, right? Normally, the Bellwether, you know, 10 year, 30 year U.S. Treasury bonds

going to pay a very low yield because it's supposed to be the safest investment on Earth, right? And

it's been the safest investment on Earth because we have a lot of money coming into

America.

We're America.

We have productivity.

We have revenue.

And it's safe.

And we have a printing press if you ever get into problems, right?

So now, for if you had a junk bond, which is the opposite end of the spectrum, that you have to entice that investor with a higher yield, the higher rate of return because they need a better return for the risk that they're taking, thinking, okay, I'm going to invest in this junk bond because who knows if the company is even going to be around six months from now.

So while I'm doing it, I need a higher rate of return.

So what does it mean when they downgrade?

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