US Completely Loses Perfect Credit Rating for First Time in Over a Century

[Lord of Planar]

Republicans cannot run an economy. They suck at economics full stop.

US completely loses perfect credit rating for first time in over a century

The Moody's announcement follows similar actions from Fitch and S&P in recent years and could result in higher borrowing costs.

www.newsweek.com

​

Moody's Ratings downgraded the U.S. government's credit rating on Friday, citing repeated failures by successive administrations to control the country's growing debt. The agency lowered the rating from its highest grade, Aaa, to Aa1, noting that while the U.S. still benefits from key strengths—such as a dynamic economy and the global dominance of the U.S. dollar—its fiscal outlook has significantly deteriorated.​

​

Newsweek has reached out to the U.S. Treasury Department via email on Friday afternoon for comment.​

Why It Matters​

The shift means the United States no longer enjoys a fully stable top-tier rating from any major agency for the first time in more than 100 years. Moody's becomes the third and final major credit agency to reduce its assessment of the federal government's creditworthiness. Standard & Poor's made its first-ever downgrade in 2011, and Fitch Ratings followed in 2023.​

We have net deserved such a high rating for a long time, it was all fictional.

 

[Taylor]

Gosh, I hope that's exactly what Dems run on next year - serious cuts to U.S. defense

From the same people who want endless spending in Ukraine.

I don't know about "serious cuts" - but we're on a good path here toward encouraging other countries to step up their own spending so we're not having to do all the heavy lifting

Everyone agrees Canada should spend more on defence. How do we pay for it?​

https://www.cbc.ca/news/politics/canada-defence-spending-nato-trump-1.7397141

NATO chief calls for more defense spending from Europe and Canada

President Trump has long been a critic of NATO and believes Europe does not contribute enough to its own defense. NATO Secretary General Mark Rutte agrees, and says 'that is going to happen.'

www.wgcu.org

 

[GOP Hippo]

Which republicans always make worse. Austerity isn't the answer or else these republican shit policies would be fixing it. It's also due to economic destabliztion. Unreliable policies that people cannot make stable business choices within. So sorry. Republicans suck at economics as well as most policies.

if that were true, we wouldn't be getting downgraded.

Because we are smarter at running macro economies. You guys are horrific and this downgrade proves it yet again.

Are you joking?
It's every Administration and every Congress spending at least one and a half times as much as the country is bringing in. It goes on year after year after year.....................................

Is it possible for someone to be so politically biased to think this credit downgrade is a result of what's happened over the last four months?

 

[Airyaman]

Let's revisit that in a week. Maybe you will be right.

All of those actual conservative Republicans who blocked the bill will now have this credit downgrade as ammo. That bill is dead.

 

[Callen]

I don't know about "serious cuts" - but we're on a good path here toward encouraging other countries to step up their own spending so we're not having to do all the heavy lifting

Yes and if we raise our you will cut your defense spending.....right. Your defense budget is where it is becasue that's what you want...period full stop.

 

[Taylor]

Yes and if we raise our you will cut your defense spending.....right. Your defense budget is where it is becasue that's what you want...period full stop.

We spend a smaller share of our budget right now on defense than we have in decades.

We're not going to fix our debt situation by cutting defense spending, it's going to require entitlement reform because that's where all the money goes.

 

[Kushinator]

The credit reduction is due to our growing debt and deficits. Cutting government is the solution. And you libs oppose that at every turn.

Why will the deficit be larger for FY 2025 than FY 2024?

I'd like to make a wager for FY 2026. Are you interested?

 

[NOLA Dude]

Republicans cannot run an economy. They suck at economics full stop.

US completely loses perfect credit rating for first time in over a century

The Moody's announcement follows similar actions from Fitch and S&P in recent years and could result in higher borrowing costs.

www.newsweek.com

​

Moody's Ratings downgraded the U.S. government's credit rating on Friday, citing repeated failures by successive administrations to control the country's growing debt. The agency lowered the rating from its highest grade, Aaa, to Aa1, noting that while the U.S. still benefits from key strengths—such as a dynamic economy and the global dominance of the U.S. dollar—its fiscal outlook has significantly deteriorated.​

​

Newsweek has reached out to the U.S. Treasury Department via email on Friday afternoon for comment.​

Why It Matters​

The shift means the United States no longer enjoys a fully stable top-tier rating from any major agency for the first time in more than 100 years. Moody's becomes the third and final major credit agency to reduce its assessment of the federal government's creditworthiness. Standard & Poor's made its first-ever downgrade in 2011, and Fitch Ratings followed in 2023.​

Yeah because that 36 trillion in debt all happened since Trump got reelected.

 

[SCrider]

Are you joking?
It's every Administration and every Congress spending at least one and a half times as much as the country is bringing in. It goes on year after year after year.....................................

Is it possible for someone to be so politically biased to think this credit downgrade is a result of what's happened over the last four months?

Its based on the debt and the lack of a coherent plan to fix it. So yes, it is because of the last 4 months.

 

[W_Heisenberg]

Trump did that.

 

[Eriech]

Republicans cannot run an economy. They suck at economics full stop.

US completely loses perfect credit rating for first time in over a century

The Moody's announcement follows similar actions from Fitch and S&P in recent years and could result in higher borrowing costs.

www.newsweek.com

​

Moody's Ratings downgraded the U.S. government's credit rating on Friday, citing repeated failures by successive administrations to control the country's growing debt. The agency lowered the rating from its highest grade, Aaa, to Aa1, noting that while the U.S. still benefits from key strengths—such as a dynamic economy and the global dominance of the U.S. dollar—its fiscal outlook has significantly deteriorated.​

​

Newsweek has reached out to the U.S. Treasury Department via email on Friday afternoon for comment.​

Why It Matters​

The shift means the United States no longer enjoys a fully stable top-tier rating from any major agency for the first time in more than 100 years. Moody's becomes the third and final major credit agency to reduce its assessment of the federal government's creditworthiness. Standard & Poor's made its first-ever downgrade in 2011, and Fitch Ratings followed in 2023.​

If the downgrade was warranted in May of 2025 it was long overdue.
Perfect timing as Bessent refinances 10 trillion. The country is on the financial brink; maybe Moody will be the kick in the arse that Republicans need. I doubt it.

 

[NOLA Dude]

If the downgrade was warranted in May of 2025 it was long overdue.
Perfect timing as Bessent refinances 10 trillion. The country is on the financial brink; maybe Moody will be the kick in the arse that Republicans need. I doubt it.

The Republicans in congress claim they support DOGE, but they won't even let the vote on the DOGE cuts happen. Hopefully this might push them to.

 

[Taylor]

Trump did that.

Just as Obama did the Standard & Poor downgrade in 2011 and Biden did the Fitch downgrade in 2023, right?

 

[Callen]

We spend a smaller share of our budget right now on defense than we have in decades.

We're not going to fix our debt situation by cutting defense spending, it's going to require entitlement reform because that's where all the money goes.

That wasn't the point. Your inference, along with many others on this board , is that the US pays more than their fair share of NATO . Monies are not paid to NATO the commitment is to have a military budget based on GDP. You far exceed the commitment not because of NATO but because of your national priorities. If you withdrew from NATO your defense spending wouldn't drop a penny.

 

[Chomsky]

Republicans cannot run an economy. They suck at economics full stop.

US completely loses perfect credit rating for first time in over a century

The Moody's announcement follows similar actions from Fitch and S&P in recent years and could result in higher borrowing costs.

www.newsweek.com

​

Moody's Ratings downgraded the U.S. government's credit rating on Friday, citing repeated failures by successive administrations to control the country's growing debt. The agency lowered the rating from its highest grade, Aaa, to Aa1, noting that while the U.S. still benefits from key strengths—such as a dynamic economy and the global dominance of the U.S. dollar—its fiscal outlook has significantly deteriorated.​

​

Newsweek has reached out to the U.S. Treasury Department via email on Friday afternoon for comment.​

Why It Matters​

The shift means the United States no longer enjoys a fully stable top-tier rating from any major agency for the first time in more than 100 years. Moody's becomes the third and final major credit agency to reduce its assessment of the federal government's creditworthiness. Standard & Poor's made its first-ever downgrade in 2011, and Fitch Ratings followed in 2023.​

The only good news to come out of this is it might make to more difficult for Trump to get his deficit increasing budget passed.

 

[Kushinator]

What I posted is fact. The current tax rates expire at the end of the year. Do nothing and everyones tax rates go up.

That's not true. SALT deduction caps expire, and a bunch of other deductions come back into the mix like mortgage interest, standard deduction, etc....

A lot of America on the lower end of the income spectrum gets a tax break.

The fantasy land is believing we got to $36 trillion national debt with democrats scrimping and saving every last taxpayer dime lol

This is something you made up on your own. It does not align with reality.

 

[Chomsky]

They really arent cuts. He is simply trying to keep the current tax rates where they are. If the current rates arent renewed, virtually everyone will see a tax increase. And stop pretending like you give a shit about debt or deficits. you dont. None of you libs do.

No, not "everyone" will see a tax increase. Only individuals. Trump & the GOP made the huge (40%) corporate tax cuts permanent. Only ours were temporary, set to expire.

We were sold a bill of goods. I called it then. I call it now.

 

[Chomsky]

Another poster who doesn’t know what the term successive administrations means.

The US education is failing us as a nation.

Well this Administration is attempting to pass a budget that will raise the Debt Ceiling another $5T, so they're far from breaking the pattern.

The only good news is the budget stalled, and now this news subsequently came out. Perhaps that will make the GOP think about ringing-up further debt. But, I'm not optimistic.

 

[Kushinator]

Just as Obama did the Standard & Poor downgrade in 2011 and Biden did the Fitch downgrade in 2023, right?

Both of those downgrades followed GOP grandstanding on debt ceiling increases.

Moody's downgrade is about bad governance on a federal level.

The interesting part comes down to how they sell reconciliation. SALT caps are enough to keep enough Representatives away from the majority vote necessary to push it through.

 

[Chomsky]

Look at that. Facts blowing up all in your face. And that's even before trump's covid debacle that Biden bailed us out from under.

View attachment 67570351

Let's not forget Democrats were the only party in recent history to run a budget surplus.

 

[Chomsky]

Trump's tax cuts during his first term added to the national debt.

If trump has his way this time around, his latest round of tax cuts will cost $3.8 trillion.

Looks to me as if those who decry the "national debt" would also come out against trump's tax cuts.

Trump is apparently asking his party to raise the Debt Ceiling around $5T.

It's clear what his intentions are.

 

[Chomsky]

If they really want to reduce the debt it's easy. Make serious cuts across the board including defense AND let the tax cut lapse......done .

The bolded still doesn't negate the huge (40%) Trump corporate tax cuts the remain permanent.

 

[Chomsky]

So do I. I usually get no further than; 'he's going to make America great again!'. When asked how, exactly, Trump proposes to do that it all goes very quiet. Maybe by selling a few million more little red hats?

Hey, those hats are made in China; they'll bring in tariff money!

 

[Chomsky]

N

Nah, just plain, unadulterated ignorance. "Wilful" implies understanding what they think they do.

Yours might be a fair point.

 

[Taylor]

That wasn't the point.

It is the point. You claimed that we could fix our debt issue by slashing defense spending. We already spend less of our budget on defense than we have in decades

Your inference, along with many others on this board , is that the US pays more than their fair share of NATO . Monies are not paid to NATO the commitment is to have a military budget based on GDP. You far exceed the commitment not because of NATO but because of your national priorities. If you withdrew from NATO your defense spending wouldn't drop a penny.

It's already dropping in relation to total GDP, which is what really matters. But even in absolute terms, it goes up and down all the time. And if Europe is spending an extra $250 billion a year on its own defense, then certainly our own spending could drop as we're not footing the bill for things like military infrastructure, troop readiness, etc.

Defending Europe without the US: first estimates of what is needed

Europe could need 300,000 more troops and an annual defence spending hike of at least €250 billion in the short term to deter Russian aggression

www.bruegel.org

Replacing US military support in Europe would cost $1T

European NATO countries would face a short-term “window of vulnerability” against Russian aggression.

www.politico.eu