US looses its AAA rating but markets don't seem to care!
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?
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The overwhelming amount of $36 trillion in debt is difficult to overlook, especially considering that yearly interest payments are expected to hit $1 trillion.
I'm having a hard to trading the market... Everything is feeling negative but markets are holding up
There is a lot of turmoil in the market right now because of the war and prices are so low, but it is a bull cycle so now is the time to buy.
There is no where to run to.
There isn't another market that could take in even part of The US market.
Everyone wants to replace the dollar, but no one is exporting their currency in a large enough of volume to take over.
Bitcoin isn't even big enough.
Even at $1,000,000 bitcoin won't be big enough.
I suspect when the crash happens, it happens over seas. and sweeps across the world, and then hits America. And, there will be no place to run.
https://www.reddit.com/r/AnythingGoesNews/comments/1lf11pl/us_loses_its_aaa_credit_rating_but_markets_barely/
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The US has been taking a lot of incorrect decisions lately. Don't know what they have been thinking and what it is that makes them feel like it will end up in their favour.
Where else are they going to go? After the dollar, the next biggest reserve asset is gold, which is a bigger market than the Euro. None of the other global currencies, including BTC, come close. It's going to take years to unwind all the debt in the system.
Maybe all eyes are on what the recent GENIUS bill passage can do. There is much believe that US leading the stablecoins market will help revamp economy with new growths and much tax advantage to the government. Just maybe!