US Credit Downgraded by Moody’s

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Moody's just stripped America of its last perfect credit rating on May 16, downgrading the U.S. from Aaa to Aa1 as national debt hits a staggering $36.2 trillion.

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The federal government's interest payments alone will soon exceed $1 trillion annually - that's more than the entire defense budget.

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Treasury yields jumped immediately after the announcement. Your mortgage rates, credit card APRs, and auto loans could be next.

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Moody's brutal assessment: "Successive US administrations have failed to agree on measures to reverse large annual fiscal deficits and growing interest costs.

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The White House blamed previous administrations: "The Trump administration is focused on fixing Biden's mess by slashing waste, fraud, and abuse in government."

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Democrats fired back: "Trump and Congressional Republicans must end their reckless pursuit of deficit-busting tax giveaways," said Senate Leader Chuck Schumer.

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Federal debt is projected to reach 134% of GDP by 2035, compared to 98% today. What happens when a country owes more than it produces?

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Stanford finance professor didn't mince words: "Congress must discipline itself - either get more revenues or spend less."

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Former Trump advisor Stephen Moore called the downgrade "outrageous" and claimed "Moody's has become a political arm of the Democratic Party."

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The timing couldn't be worse - The One Big Beautiful Bill Act just failed in committee, with projections it would add $2.5 trillion to federal deficits.

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This marks a watershed moment in American financial history - Moody's had maintained the U.S.'s perfect credit rating since 1917.

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Despite the downgrade, Moody's still praised America's "exceptional credit strengths" and the continued role of the U.S. dollar as global reserve currency.

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