Get ready for America to lose its AAA credit rating entirely under Trump

 ... The agency said in a report that the country's fiscal health deteriorated further since Moody's lowered its outlook on the U.S. triple-A rating in November 2023. ... 

Moody's is the last among major ratings agencies to keep a top, triple-A rating for U.S. sovereign debt, though it lowered its outlook in late 2023 due to wider fiscal deficits and higher interest debt payments.

Fitch cut the U.S. sovereign rating by one notch to AA+ from AAA in 2023, citing fiscal deterioration and repeated down-the-wire debt ceiling negotiations that threaten the government’s ability to pay its bills. It was the second major rating agency to strip the United States of its top triple-A rating, after Standard & Poor's did so after the 2011 debt ceiling crisis. ...

More.

The US debt downgrades of 2011 and 2023 have one thing in common: Nancy Pelosi's record of the four most fiscally irresponsible years in the post-war

Nancy Pelosi owns the record for the four most fiscally irresponsible years in the post-war, spending 316% of tax receipts in 2020, 276% in 2021, 310% in 2009, and 296% in 2010.

Her four years as Speaker 2007-2010 averaged current expenditures as a percent of current tax receipts of 251%, highest for any Speaker ever.

S&P downgraded the debt in August 2011.

The Boehner/Ryan interregnum averaged 219%.

Pelosi's next four years as Speaker 2019-2022 averaged 252% in overspending.

Fitch has now downgraded the debt in August 2023.

Taken all together, Pelosi's Speakership produced the worst overspending in the post-war at 251% of revenues. The excess has to be borrowed, ballooning the debt.

The ratings agencies sound the alarm bells no one else will ring, but they are mocked by all the experts, whose livelihoods depend on the scam continuing. 

 All Bills for raising Revenue shall originate in the House of Representatives; but the Senate may propose or concur with Amendments as on other Bills.     

-- US Constitution, Article One, Section Seven

 

Some people say they don't understand why Fitch Ratings downgraded the US to AA+ from AAA

 Debt to the penny: July 31: $32,608,585,072,666.14 May 31: $31,464,457,465,522.98 Debt increase in 2 months: $1,144,127,607,143.16, about $18.76 billion per day.

Fitch downgrades U.S. long-term rating to AA+ from AAA :

“In Fitch’s view, there has been a steady deterioration in standards of governance over the last 20 years, including on fiscal and debt matters, notwithstanding the June bipartisan agreement to suspend the debt limit until January 2025,” the ratings agency said. ...

This isn’t the first time a rating agency has downgraded the U.S. Standard & Poor’s cut the nation’s credit rating to AA+ from AAA in 2011 after Washington managed to avoid a default. At the time, the agency highlighted political risk as part of its reasoning.

 

The contagion of the record low 10-year Treasury yield of July 2016 has spread to the 30-year in August 2019

U.S. 10-Year Treasury Yield Closes at Record Low:

The yield on the U.S. 10-year Treasury note settled at 1.367% Tuesday, breaching the previous close low of 1.404% set in July 2012 when investors rushed into haven debt amid the depth of the eurozone’s sovereign debt crisis. Yields fall as bond prices rise. ...

On an intraday basis, the U.S. 10-year yield touched as low as 1.357%. It was 1.446% Friday and 2.273% at the end of last year. The U.S. bond market was shut Monday for a holiday.

Traders say the 10-year yield still has room to fall. Investors and analysts say bond yields are in uncharted waters now and that it is hard to predict how low yields could go in this environment.

Few in the financial markets have foreseen a period of negative interest rates touching off globally. The total of sovereign debt with negative yields jumped to $11.7 trillion as of June 27, up $1.3 trillion from the end of May, according to Fitch Ratings.

The pool is likely to expand further in the months ahead due to ongoing purchases of government bonds by the European Central Bank and the Bank of Japan. ...

The 30-year Treasury bond has been the market darling, and the buying spree has pushed down its yield to record lows lately. The 30-year bond’s yield settled at 2.138%, falling below its record close low of 2.226% Friday.

The 30-year bond was usually the playground for pension funds and insurance firms. But it is now being bid up by a broader investor base due to the global hunger for income. Analysts say it wouldn’t surprise them if the 30-year yield falls below the 2% mark in the weeks ahead.

Three years later:

U.S. 30-year bond yields hit record low, curve inversion grows:

In late Wednesday trading, the yields on 30-year government bonds were 1.939%, down 2.2 basis points from late Tuesday. They hit an all-time low of 1.905% earlier Wednesday.