You should be concerned with debt/GDP ratio, not the overall number. We’ve had no problem paying our bills which is why in the past we have had an excellent rating. Historically our debt/GDP ratio has been in line with other nations with developed economies. Nothing unusual.
Moody’s is lowering our rating because our GDP is projected to go down (due to tarrifs and destruction of the public sector) and we are going to be operating with a budget deficit. Decrease in GDP means less tax money coming in, and we will be adding to the deficit anyway (and thus our debt) due to Republican policies.
Trump has also said he didn’t feel like paying the interest on the debt, which no one took seriously and he didn’t follow through with. Thank god. Since most tbills are owned by US holders, not paying out bonds is a direct self-own.
Focusing on the actual debt total doesn’t paint a full picture. Moody’s is only concerned whether tbills purchased will actually pay.
You should be concerned with debt/GDP ratio, not the overall number. We’ve had no problem paying our bills which is why in the past we have had an excellent rating. Historically our debt/GDP ratio has been in line with other nations with developed economies. Nothing unusual.
Moody’s is lowering our rating because our GDP is projected to go down (due to tarrifs and destruction of the public sector) and we are going to be operating with a budget deficit. Decrease in GDP means less tax money coming in, and we will be adding to the deficit anyway (and thus our debt) due to Republican policies.
Trump has also said he didn’t feel like paying the interest on the debt, which no one took seriously and he didn’t follow through with. Thank god. Since most tbills are owned by US holders, not paying out bonds is a direct self-own.
Focusing on the actual debt total doesn’t paint a full picture. Moody’s is only concerned whether tbills purchased will actually pay.