Moody’s throws a curved ball

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The writer is the President of the Structured Loan International Corps and the former senior vice president in S & P Latin American debt crisis

Donald Trump just won a dubious difference: For the first time in more than a century, the United States holds the AAA credit rating of any major agency. Moody’s, USA’s discount to AA1 undressed the country’s country last week.

Following the increase in historical increase in 2023 in 2011 and Fitch, Moody’s decision provides an invalidation for the financial financial and is in the Gate of President Trump.

Each of the “Great Three” rating is due to the reduction of the same issue: chronic financial Ignition managed by political paralysis. The lowering of the S & P in 2011 came after the Bitter Debt-Ceiling War and stubborn, as a result of a lack of intense polarization and a reliable amendment.

Fitch’s actions in 2023 warned that in US management and perennial debt limit brinkmans. Moody’s now, despite the fact that the growing debt and sustainable deficients, Washington has an alarm although it has limited budget comfort. Rights costs, tax revenues are filled and no party is ready to compromise. The message of the agencies is clear: America’s guerrilla stalematics and political ambiguity have serious financial results.

Former discounts did not intimidate investors – in 2011, after the cutting of the S & P, the Treasures were paradocia rallies and 2023 of Fitch’s 2023 influence the US bonds productivity.

This time, when we saw a jump in the fertility in the 30 years of 30 years of 30 years, Trump saw the last summit announced by the tariff “Freedom”.

As the US government respected its obligations, the treasury debt will maintain the status of the “risk-free” Benchmark. All three agency currently appoints a stable outlook to the United States, there is no lower discount immediately. However, if Moody’s, debt sizes or after management, another rating warned that it is possible. In short, the White House is forked to prevent a sharp fall in credit abilities.

Politically, Moody’s verdict strengthened the game in Washington. Democrats proven the Trump’s financial policy – Senate democratic leader Chuck Schumer called the Republican “Awakening call” “” “Depression Tax Giveaway”. Republicans, excessive upholstery – not tax reduction – is a real sinner, and some are fired by rating agencies.

The repetition of past demonstrations. After the cutting of S & P’s 2011, each political side hit his fingers. The Obama administration led to $ 1.5 billion in S & P in 2013 in 2013 in 2013 in S & P in S & P to $ 1.5 billion. After the Fitch was reduced in 2023, Biden officials took action as “arbitrary”.

The truth is the truth that both sides have a hand with American Burgeon debt, but a sustainable solution is not supported. “For more than a decade, the United States has increased sharply due to its sustainable financial shortcoming, and the federal expenditures increased during this period.

Structural dysfunction – Polarization and eternal brinkmanship – serious financial reform is almost impossible. Dysfunction continues. Without a blessing of the Oval office, the Nation’s financial trajectory will deteriorate, regardless of the Oval Office, without a blessing of the Oval office.

The fact that the United States does not borrow is impunity, the dollar is an unrivaled role as the world’s reserve currency. The share of international resources for the dollar decreased from 80 percent to 80 percent in the 1970s. Moody’s, a reserve actively admits that the dollar dominance gives us extraordinary financial comfort.

After being lowered in the past, global investors continue to seek security, seeking security, continue to seek security and seek their security, not an alternative to the depths and liquidity of the US treasures. But this pillow is stupid and not forever. Each debt is afraid of ceiling and every loan warning plugs are far from confidence in US management.

Losing the AAA status along the plaque is a symbolic blow to the American prestige. Washington must spend the financial house to get a financial house before the financial house of the dollar and the nation’s financial exception.