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Posted

Oh well....

Key Reasons for the Downgrade

**Moody's cited the following factors for the downgrade:

  • Rising Government Debt: A sustained increase in federal debt over more than a decade, with debt-to-GDP ratios significantly higher than other similarly rated sovereigns.
  • Increased Interest Payments: Growing interest costs due to higher interest rates, straining debt affordability.
  • Large Fiscal Deficits: Successive administrations and Congress have failed to reverse annual fiscal deficits, with Moody's projecting deficits could widen further, especially if President Trump’s 2017 tax cuts are extended (estimated to add $4 trillion to the deficit over the next decade).
  • Political Dysfunction: Ongoing gridlock in Washington, including failure to pass meaningful fiscal reforms, exacerbates fiscal risks.

In the meantime, who can the HATERS blame this on....ha ha ha ....

 

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**Moodys-- https://ratings.moodys.com/ratings-news

https://www.forbes.com/sites/antoniopequenoiv/2025/05/16/moodys-slashes-united-states-credit-rating-over-rising-government-debt-and-interest/

Posted

The debt level is certainly an issue that this administration needs to address!

Oh wait! 😆

 

"The package would cut taxes deeply – essentially making permanent the sweeping individual income tax provisions of Trump’s 2017 Tax Cuts and Jobs Act, as well as adding several temporary tax breaks to fulfill the president’s campaign promises.

 

It also calls for historic cuts to the nation’s safety net – particularly Medicaid and food stamps – in an effort to cut spending.

 

But the tax revenue loss would still swamp the spending reductions. The package would add $3.3 trillion to the nation’s debt over the next decade, according to a preliminary estimate from the Committee for a Responsible Federal Budget.

 

Annual deficits would jump from $1.8 trillion in 2024 to $2.9 trillion by 2034 as the federal government would continue to spend more than it would raise in revenue, the committee projected."

 

The United States just lost its last perfect credit rating

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

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