U.S. Loses Last Triple-A Credit Rating

[NotFuzzyWarm]

Just in: https://www.cnn.com/2025/05/16/business/moody-us-credit

Moody’s downgrades the U.S. government, citing large fiscal deficits and rising interest costs

Moody’s Ratings downgraded the United States’ debt on Friday, stripping the country of its last perfect credit rating. The move could rattle financial markets and push up interest rates, potentially creating an additional financial burden for Americans already struggling with tariffs and inflation.

Of the three major credit rating agencies, Moody’s was the lone holdout, maintaining its outstanding rating of AAA for US debt. Moody’s held a perfect credit rating for the United States since 1917.  It 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.

The decision to downgrade debt was influenced by “the increase over more than a decade in government debt and interest payment ratios to levels that are significantly higher than similarly rated sovereigns,” Moody’s said in a statement. Moving forward, Moody’s said it expects borrowing needs to continue to grow and for it to weigh on the US economy as a whole. .

Can't wait to see how Trumpolini tries to spin this one...  

[WillyAp]

Just in: https://www.cnn.com/2025/05/16/business/moody-us-credit

Can't wait to see how Trumpolini tries to spin this one...  

They already did:

“The Trump administration and Republicans are focused on fixing Biden’s mess by slashing the waste, fraud, and abuse in government and passing The One, Big, Beautiful Bill to get our house back in order,” White House spokesperson Kush Desai said on Friday. “If Moody’s had any credibility, they would not have stayed silent as the fiscal disaster of the past four years unfolded.”

In the same article Trumps people answered.   

[NeuroticFish]

Can't wait to see how Trumpolini tries to spin this one...  

1. I expect this kind of news keep coming. It's just the normal result of his chaotic actions.
2. I also expect that no action is done about them because:
* he "knows better"
* whatever nonsense he delivers is accepted by his supporters
* even if he would provide proper knowledgeable answer (heh), it may not be accepted by many of his opponents

I do agree that US (and the world, pretty much) is going in the wrong direction. But let's also agree that nowadays everything is more biased in politics than ever. It's like the vast majority (of the world population) has lost the ability to think. Or it may only me realizing this rather late and somewhat suddenly.

[Don Pedro Dinero]

I am far from a fan of Trump but neither of you two seem to have taken any notice of what the OP himself has written.

The decision to downgrade debt was influenced by “the increase over more than a decade in government debt and interest payment ratios to levels that are significantly higher than similarly rated sovereigns,” Moody’s said in a statement. Moving forward, Moody’s said it expects borrowing needs to continue to grow and for it to weigh on the US economy as a whole. .

I will illustrate this with a chart of https://fred.stlouisfed.org/series/GFDEBTN



As can be clearly seen, there was a first acceleration of debt with the bursting of the .com bubble, another with the 2007 crisis, and another with the Covid crisis. This with alternating Democrats and Republicans in the White House. So this is not about one president or the other being solely to blame, let's see if we have forgotten which forum we are in. Just take a look at this:

https://www.usdebtclock.org/world-debt-clock.html

I say this about the forum we are in because the forum was created, just like bitcoin against the fiat system scam, in which one party comes along and makes some small changes, and then another comes along and makes others, but they all share the fundamental basis, the destruction of fiat currency by increasing state spending and devaluing the currency with inflation, which many people do not realise is the biggest economic scam perpetrated by the states.

[Ambatman]

The decision to downgrade debt was influenced by “the increase over more than a decade in government debt and interest payment ratios to levels that are significantly higher than similarly rated sovereigns,” Moody’s said in a statement. Moving forward, Moody’s said it expects borrowing needs to continue to grow and for it to weigh on the US economy as a whole. .

I will illustrate this with a chart of https://fred.stlouisfed.org/series/GFDEBTN

Moodys had signal the possibility in November 2023 Where outlook changed to negative from stable
under President Biden
A proof that the fiscal trajectory predates Trumps 2025 return.
But it's current policies and choosing to continue the tax cut of 2017(which he enacted)
Hasn't really helped much.


Or it could be polical.


https://x.com/markoramius99/status/1923689489697779931?t=pv3DsV9LAnthz99PdGiJWw&s=19

Can't wait to see how Trumpolini tries to spin this one...  

It'd be something like this

Rob Fauber is a disgrace and enemy to the state. This Moodys downgrade is a total disaster,
a complete and utter failure caused by Sleepy Joe Biden and Crooked Kamala's reckless,
woke spending spree on useless programs and foreign wars that bled America dry.
Their incompetent, corrupt leadership handed me a mess, but I will Make America Great Again with the strongest economy ever,
Believe me!!!

[franky1]

kind of a non-news event and just a recognition of something obvious from years ago finally being followed through with

US should have been downgraded years ago.. all other credit agencies downgraded US years ago, only moodies held out due to relationship with the Dems
now the dems are out, moodies finally joined the mindset of the other credit agencies

[bitgolden]

It is true, they have been doing bad with all of them. It is not just about Trump, Biden increased it too, and then before that Trump did it on his first term, and even though Obama did his best, they did as best as they could but still increased it. So when you think of it they have been bad not just for the last 10 years, but been bad since 1971 and since they got out of the gold standard.

So it is high time that the yare not considered a "strong economy" because yeah if you are a huge company, or a wealthy person, USA is awesome for you, but for the normal people, people who are working normally, end up being worse and worse, so it is not going to get any better for them neither, looks like they are going to not be able to recover it at all.

[WillyAp]

In the end it'll go by and another scandal will fill the need to arm anger.
The current administration has some bright moments and a lot of dumb ones too.
Using signal is one thing.

Elon's overdrive with little to none transparency are only a few high lights.

[STT]

Its the opposite of a non event but the full impact and implications of losing a good credit rating might not be recognized immediately.   The graph at least looks like its going parabolic with increasingly steeper gradient as the interest costs more so to the budget becomes increased by that added cost as in a feedback effect.
  This is not an unforeseeable problem as its happened with a variety of countries but debt runaway in the worlds reserve currency would effect everyone negatively pretty much and its something that has to be avoided.   Trump doesn't have to spin it especially as its already part of the narrative, its not new news but macro economic factor true for decades so he can easily say he is here to solve it.  Only in retrospect is that solution a failure or success especially and mostly the politics doesnt pay the price, its we the people.

[BitHodlers]

As can be clearly seen, there was a first acceleration of debt with the bursting of the .com bubble, another with the 2007 crisis, and another with the Covid crisis. This with alternating Democrats and Republicans in the White House. So this is not about one president or the other being solely to blame, let's see if we have forgotten which forum we are in. Just take a look at this:

https://www.usdebtclock.org/world-debt-clock.html

I say this about the forum we are in because the forum was created, just like bitcoin against the fiat system scam, in which one party comes along and makes some small changes, and then another comes along and makes others, but they all share the fundamental basis, the destruction of fiat currency by increasing state spending and devaluing the currency with inflation, which many people do not realise is the biggest economic scam perpetrated by the states.

A lot of people are very biased and can't see anything past their preconceived believes. Recently, a lot of people have symptoms of trump derangement syndrome. To those that even have an ounce of rational thinking in them, it is evident that this is a problem that goes beyond any party and that no real solutions are even being proposed.

But it's current policies and choosing to continue the tax cut of 2017(which he enacted)
Hasn't really helped much.

More money in the hands of the state does not help at all, often it makes all these problems worse.

Its the opposite of a non event but the full impact and implications of losing a good credit rating might not be recognized immediately.   The graph at least looks like its going parabolic with increasingly steeper gradient as the interest costs more so to the budget becomes increased by that added cost as in a feedback effect.

It is a non event, because 2 of the 3 main rating agencies already did this. It was just an overdue adjustment. Obviously something is wrong with the USA in terms of its finances, but it has nothing to do with Trump and his administration only. Other administrations have done nothing differently.

[DeathAngel]

Just a big load of nothingness, it’s not going to cause any huge problems. The Fed really needs to start cutting rates though, I still don’t understand Powell’s procrastination. Hopefully when Trump comes out with his new tariffs list, as he is due to do in a couple of weeks it will give Powell a push to think inflation is OK & rate cuts are appropriate.The economy will be fine like it always is.

[philipma1957]

Just in: https://www.cnn.com/2025/05/16/business/moody-us-credit

Moody’s downgrades the U.S. government, citing large fiscal deficits and rising interest costs

Moody’s Ratings downgraded the United States’ debt on Friday, stripping the country of its last perfect credit rating. The move could rattle financial markets and push up interest rates, potentially creating an additional financial burden for Americans already struggling with tariffs and inflation.

Of the three major credit rating agencies, Moody’s was the lone holdout, maintaining its outstanding rating of AAA for US debt. Moody’s held a perfect credit rating for the United States since 1917.  It 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.

The decision to downgrade debt was influenced by “the increase over more than a decade in government debt and interest payment ratios to levels that are significantly higher than similarly rated sovereigns,” Moody’s said in a statement. Moving forward, Moody’s said it expects borrowing needs to continue to grow and for it to weigh on the US economy as a whole. .

Can't wait to see how Trumpolini tries to spin this one...  

but but but he is Donald Trump America is going to win win win under him.

Let's see BTC ATH under sleepy Joe 109.3k BTC best price under Trump 108k.

and in terms of the pound and the. Euro it is worse.

I do feel he will default in 2027 or threaten it and want different terms for the USA debt.

[STT]

Powell is apprehensive because he had a nasty shock last time he underestimated latent inflation in the economy.  The FED cannot control the extremes, its all an illusion and he is just the apprentice to the economy itself; his caution is correct most likely.

Most of all the FED has to appear to be a calm hand on the tiller, its a surprisingly large difference within the confidence and appearance showing decisions reflected globally.  Once that confidence and appearance of control is lost its easily a screw up situation and many already know Powell is pressing buttons that do nothing.

Other administrations have done nothing differently.

Generally I agree, the debt wouldnt be so bad if at least one recent administration had done something useful for fiscal balance.  Mostly they are all degrees of broken policy, maybe Clinton repaid some debt but I dont want to say he did anything that useful.   He stayed in government with popular support despite many negative headlines people wanted him there, as above the appearance and support of at least some of the voting public is fairly important.  Government is most dangerous when they all agree.

[philipma1957]

I am far from a fan of Trump but neither of you two seem to have taken any notice of what the OP himself has written.

The decision to downgrade debt was influenced by “the increase over more than a decade in government debt and interest payment ratios to levels that are significantly higher than similarly rated sovereigns,” Moody’s said in a statement. Moving forward, Moody’s said it expects borrowing needs to continue to grow and for it to weigh on the US economy as a whole. .

I will illustrate this with a chart of https://fred.stlouisfed.org/series/GFDEBTN



As can be clearly seen, there was a first acceleration of debt with the bursting of the .com bubble, another with the 2007 crisis, and another with the Covid crisis. This with alternating Democrats and Republicans in the White House. So this is not about one president or the other being solely to blame, let's see if we have forgotten which forum we are in. Just take a look at this:

https://www.usdebtclock.org/world-debt-clock.html

I say this about the forum we are in because the forum was created, just like bitcoin against the fiat system scam, in which one party comes along and makes some small changes, and then another comes along and makes others, but they all share the fundamental basis, the destruction of fiat currency by increasing state spending and devaluing the currency with inflation, which many people do not realise is the biggest economic scam perpetrated by the states.

tricky dick started this when he lowered tax rates for the rich below 50%

the USA rich have looted the country for 55 years.

Trump is in to default the USA bonds by 2027

oh tricky dick is Richard Nixon

[Fortify]

Can't wait to see how Trumpolini tries to spin this one...  

1. I expect this kind of news keep coming. It's just the normal result of his chaotic actions.
2. I also expect that no action is done about them because:
* he "knows better"
* whatever nonsense he delivers is accepted by his supporters
* even if he would provide proper knowledgeable answer (heh), it may not be accepted by many of his opponents

I do agree that US (and the world, pretty much) is going in the wrong direction. But let's also agree that nowadays everything is more biased in politics than ever. It's like the vast majority (of the world population) has lost the ability to think. Or it may only me realizing this rather late and somewhat suddenly.

While I definitely agree that this was instigated by Trump, it makes a change for credit rating agencies to be proactive for once - they often react far too late, but Moody's were actually behind the curve on this downgrade and are just following the other two now. It appears that Elon is on his way out of DOGE without any of the major cost cutting that was claimed at the beginning and Trump managed to annoy pretty much every single trading partner America has all in one go, even countries where the USA was gaining a trade surplus - that's impressively dumb and shows that he has little tact when it comes to the delicate world of politics. But, as is often repeated now, this is a man that managed to bankrupt a casino (or was it two?) which are pretty much money printing machines. Only another 3 and a half years of this madness left to go..

[philipma1957]

Can't wait to see how Trumpolini tries to spin this one...  

1. I expect this kind of news keep coming. It's just the normal result of his chaotic actions.
2. I also expect that no action is done about them because:
* he "knows better"
* whatever nonsense he delivers is accepted by his supporters
* even if he would provide proper knowledgeable answer (heh), it may not be accepted by many of his opponents

I do agree that US (and the world, pretty much) is going in the wrong direction. But let's also agree that nowadays everything is more biased in politics than ever. It's like the vast majority (of the world population) has lost the ability to think. Or it may only me realizing this rather late and somewhat suddenly.

While I definitely agree that this was instigated by Trump, it makes a change for credit rating agencies to be proactive for once - they often react far too late, but Moody's were actually behind the curve on this downgrade and are just following the other two now. It appears that Elon is on his way out of DOGE without any of the major cost cutting that was claimed at the beginning and Trump managed to annoy pretty much every single trading partner America has all in one go, even countries where the USA was gaining a trade surplus - that's impressively dumb and shows that he has little tact when it comes to the delicate world of politics. But, as is often repeated now, this is a man that managed to bankrupt a casino (or was it two?) which are pretty much money printing machines. Only another 3 and a half years of this madness left to go..

US to default it is getting closer to the time.

[paxmao]

To be honest, the US should have lost long ago the highest rating. At present, the debt to GDP ratio is well above 100% and it is only because of the USD being the world coin by a large difference that the US is still balancing well. The moment the growth goes down, there is likely to be massive pain on debt paying via taxes.

[STT]

tricky dick started this when he lowered tax rates for the rich below 50%

I dont want to drag out a long argument about this because it should just be a simple point.  The absolute margins of taxation are not as important as the revenue raised and this is very similar across business.

  Its almost always about the revenues and scale of business done not the profit margin possible to levy on a 'customer'.   This can be the mistake many make about capitalism in general but its quite ironic that lowering margins, being efficient can be the most productive and profitable route for a business and even government in this case.  

https://www.investopedia.com/terms/l/laffercurve.asp

I believe the 'Laffer curve' tries to describe this idea and might be the simplest thing to quote but it can be true that high taxation rates nets less tax overall.   Especially true in this modern global economy, I have no belief trying to capture the rich man dollar like its fish in a net is the path to balancing the budget etc.
  It is a mythical tale unfortunately, it wont be happening in this administration or any other and there is a danger of doing less business then achieving less tax to balance fiscal spending, leading to even more debt for no advantage.

[Yokkattannee]

Just a big load of nothingness, it’s not going to cause any huge problems. The Fed really needs to start cutting rates though, I still don’t understand Powell’s procrastination. Hopefully when Trump comes out with his new tariffs list, as he is due to do in a couple of weeks it will give Powell a push to think inflation is OK & rate cuts are appropriate.The economy will be fine like it always is.

Yes, that is the hope for the future so that the economy is much better with the interest rate cuts that occur, of course there are efforts to encourage stable economic growth and the main thing is to increase purchasing power, with this Powell delay, of course they consider their decisions very carefully because it can have an impact on the world market. Likewise with Trump's policy of lowering tariffs, maybe temporarily considering Trump's tough trade approach that he always does.

[Darker45]

It seems it doesn't need much spinning. He just have to criticize Moody's, its credibility in particular. And that's it, end of story. Moody's hasn't been exceptionally reliable, anyway. Its past failures would make the rebuttal sound valid.

And then there's the fact that Biden can always be made as an excuse. His administration failed here and there and now Trump's new government would have to bear the impact. After all, he's just a few months in office.