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Moody's cuts America's pristine AAA credit rating, citing rising debtwww.reuters.com/markets/us/moodys-downgrades-us-aa1-rating-2025-05-16/
220 sats \ 6 comments \ @Coinsreporter 9h econ
It (Moody's) now ranks US creditworthiness one notch below that, at Aa1, joining Fitch Ratings and S&P, which lowered their credit ratings for US debt in 2023 and 2011, respectively.
Why America lost its AAA rating Ballooning deficits, the unique US debt ceiling mechanism and political intransigence have been at the center of its downgrades from all three major credit ratings agencies.
Thankfully it came only after the markets closed for the week on Friday. It'll be interesting to see how the markets react on Monday morning as these type of downgrades in rating often put pressure on sticks and bonds. Although it can be sidelined if Trump comes up with another good news on the weekend.
What do you say?
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17 sats \ 2 replies \ @Undisciplined 9h
What I recall from previous downgrades, is that they're kind of a nothingburger. People worry about large funds, that are only allowed to hold AAA rated bonds, dumping Treasuries, but I think they just change their portfolio rules.
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38 sats \ 0 replies \ @Coinsreporter OP 9h
I think you're right. I actually only have experienced these downgrades for India or Indian entities which almost always resulted in a panic.
I think they just change their portfolio rules.
This means nobody cares about ratings in the US anymore.
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0 sats \ 0 replies \ @Solomonsatoshi 2h
mBridge is something US exceptionalists dont want to know about and thus do not understand. Trade dominance naturally evolves into monetary dominance.
China has won the trade war. USA is fucked without Chinese supply chains.
The Saudis have joined mBridge. The petrodollar is facing imminent collapse.
~$7T USTs must be rolled over by Christmas. Moodys giving AAAs to CDO junk bonds precipitated the GFC.
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17 sats \ 1 reply \ @justin_shocknet 8h
Every headline is part of a script directed by the IC... they're working on a budget bill through the weekend.
Based on some clips I've seen from actors on the hill on this, its narrative enforcement, and my guess is this budget shit will go into the summer.
Bannon has been roadshowing a constitutional crisis over the summer (as I've long been predicting #753210 | https://stacker.news/search?amount=&q=%40justin_shocknet+constitutional+convention). He says a "convergence" of crisis, so debt stuff plus habeus corpus would be a nice mix.
Popcorn longs still open.
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0 sats \ 0 replies \ @Solomonsatoshi 2h
China has won the trade war. USA is in $37T debt and interest rates are rising. USD has been in decline since 2015.
China is already enabling trade payments with a growing number of partners outside of USD/SWIFT legacy hegemony.
Saudi Arabia has joined BRICS and mBridge. Petrodollar is on its deathbed. Anyone wanna buy the $7T USTs that need to be refinanced before Christmas?
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0 sats \ 0 replies \ @coinhome 2h
From 'Aaa' since 1919 to 'Aa1' now—who would have thought we’d come to this? Fiscal policy plays a huge role here.
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