Shocking Revelation! The Fall of U.S. Debt 'AAA': A Crisis or the Prelude to Rebirth?

Moody's has downgraded the U.S. sovereign credit rating for the first time, ending the myth of 'risk-free U.S. debt.' Despite the downgrade, market confidence remains strong, bolstered by a robust U.S. economy and the global status of the dollar creating a solid barrier.

Debt Pressure Soars:

Deficits hit record levels, with debt projected to exceed 118% of GDP by 2035, and interest expenses surging to 30% of income, creating a heavy fiscal burden.

Four Major Shields Supporting:

A strong economy, the dollar's status as a reserve currency, flexible Federal Reserve policies, and a stable political system.

Market Performance:

Treasury auctions continue to be popular, with steady buying interest, a slight increase in risk premium, and a potential adjustment to its benchmark status.

Conclusion:

The downgrade is not an end but the beginning of a new chapter for U.S. debt; the future depends on fiscal policy and political stability.