Fitch's US credit-rating downgrade means there's less faith in the dollar and Treasury bills, Kevin O'Leary said.
This will push sovereign wealth funds to be weary of holding greenbacks, he told Fox News.
Doesn't matter: the more the government goes into deficit spending, the more rating agencies scrutinize the quality of that debt," O'Leary said.
This is the second downgrade the US has ever received, preceded by S&P Global's 2011 downgrade.
Effectively, the lowered rating also means a higher cost of borrowing for the US, which deepens federal deficit spending.
Persons:
Kevin O'Leary, Fitch, O'Leary, That's, Goldman Sachs, Jamie Dimon, Mohamed El, Erian
Organizations:
Treasury, Fox News, Service, US Treasury, AAA, AA, Wall, CNBC
Locations:
Wall, Silicon, America