The US recently lost its AAA credit rating. This follows similar downgrades by S&P and Fitch, with Moody's finally following suit, and to my mind it's only a sign of how much they kiss the US' ass why they didn't do this years ago...
I mean just look at increasing costs of borrowing to the US on increasing government debt...they had a lucky break 2020 to 2022 but now the debt chicken is coming home to roost!
Traditionalist Concerns....
Well it's kind of difficult to sugar coat $36 trillion in debt with $1 TN a year being spent on interest payments.....
Of course Team Trump think tariffs, tax cuts and DOGE efficiencies are going to save the day, all of this enabling even more borrowing.
And some commentators are warning about the threat of stagflation, that ugly combination of stagnant growth and persistent inflation.
And I mean as far as I am concerned the US' growth that's going to enable it pay back debt kind of depends on relative global certainty and financial stability, and with war in the Middle East, that's not looking likely....
But markets don't care...
However, despite financial markets taking a little shock dip: stock futures were hit hard, and treasury yields briefly shot up, since then - CALM! After the initial shock, investors simply don't seem to be too bothered about this, they treated it as a stock-buying opportunity!
Maybe they all know something we don't - like maybe the in-crowd knows that national debt is part of an old system that's about to be faded out, maybe Trump will simply default? I mean he's making signals of unilateralism, after all?