🚨The US debt has lost its last AAA rating, and the chain reaction may already be underway——

Following the downgrades by Fitch and S&P, Moody's has also downgraded the US debt rating to "AA1," citing that the nominal US debt has exceeded $36 trillion, with a budget deficit surpassing 6% of GDP.

US debt has always been considered the safest investment in the world. It is worth noting that it has held a AAA rating since 1917, and the last downgrade was in 2011 by S&P.

Now that all three major credit rating agencies have withdrawn, it indicates that the US debt issue is indeed deeply entrenched, especially with the current unpredictable president, leading to an unprecedented expansion of the budget deficit.

Countries that treat US debt as a "currency anchor" need to start thinking:

When a credit tool that supports financial stability begins to waver, it means you have to start looking for a new anchor.

This is not alarmist. The downgrade of US debt rating will not immediately trigger anything, but it will quietly change the direction of many long-term behaviors——

For example, central banks, sovereign funds, and pension systems may no longer regard US debt as the first choice for mindless allocation, but will begin to assess risk premiums, liquidity hedging, and even consider partial "de-dollarization" actions.

Some may say: Doesn’t the market seem unresponsive?

Yes, the market is influenced by short-term sentiment, and the credit fracture of US debt may not quickly reflect in prices, but I believe the financial structure is already turning around.

In the coming years, we may see——

1. More countries accelerating the establishment of local currency settlement systems (especially in the Middle East and Southeast Asia);

2. More sovereign wealth funds, and even nations, will prioritize gold, $BTC, and non-dollar asset proportions on their agendas;

This is what a turning point looks like; it’s not the interest rates that are changing, but the allocation logic!