When the Republican-controlled Congress voted DOWN President Trump's "Big, Beautiful Bill" in Committee today, the effect was immediate: Moody's just downgraded the United Sates' credit rating for the FIRST time in history.
The reason: An unsustainable path for US federal debt and its resulting interest burden.
Moody's notes that the US Debt-to-GDP ratio is on track hit 134% by 2035.
Federal interest payments are set to equal ~30% of revenue by 2035, up from ~18% in 2024 and ~9% in 2021.
Furthermore, deficit spending is now at World War 2 levels as a percentage of GDP.
Credit Rating Downgrade – AAA to AA1: Yes, the U.S. credit rating was downgraded from AAA to AA1.
The US debt crisis is our biggest issue with the least attention.
Members of CONGRESS who have utterly failed (or refused) to fix this issue, are jointly and severally to blame - personally.
But of course they don’t announce the downgrade until after market close on a Friday.
