- On May 17, Moody’s officially downgraded the U.S. from Aaa to Aa1, ending 13 years at the highest rating.

💸 Reason: public debt and budget deficit are too large

- U.S. debt has surpassed the size of the entire economy

- High interest rates are driving up debt repayment costs significantly

- The budget deficit is nearly $2 trillion each year, equivalent to over 6% of GDP

📊 All 3 major agencies have downgraded the U.S.

- S&P downgraded since 2011

- Fitch downgraded since 2023

- Now it’s Moody’s turn – the last piece has fallen

🏛 Moody’s criticizes the U.S. Congress for excessive spending

- Both parties are to blame for continuously enacting large spending packages,

- The new tax bill worth $3.8 trillion is causing controversy.

💬 Finance Minister Scott Bessent warns during a hearing before the U.S. Congress, May 2025

'Current debt is truly frightening. A crisis could come as unexpectedly as a power outage.'

🏗 Forecast: by 2029, public debt will equal 107% of GDP

- Surpassing even the levels after World War II.

- Moody’s predicts the deficit will rise to nearly 9% of GDP by 2035 if not controlled.

🏛 The White House reacts angrily

- The spokesperson calls the downgrade a political motive

- Trump urges Congress to pass the new tax cut package immediately.

In summary:

📉 If the U.S. continues to spend recklessly, Treasury bonds should be renamed to… 'future apology bonds'