US Credit Score Lowered–Oops!--Moody’s Kicks Uncle Sam Out of the AAA Club

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Hold onto your wallets, patriots—America just lost its perfect report card. On Friday, Moody’s downgraded U.S. sovereign debt from AAA (since 1917!) to Aa1, proving that even world-beating superpowers can flunk fiscal responsibility.

“We’ve Been Here Before”

S&P and Fitch already slapped us down in 2011 and 2023 for “political brinksmanship” and “fiscal deterioration.” Moody’s was the lone holdout, until now. 

Why the change of heart? Decades of ballooning debt and interest payments higher than Congress’s drama quotient.

Congress: The Original Credit Hooligans

Remember last summer’s near-default, Speaker McCarthy’s historical ouster, and the nation’s debt ceiling game of “let’s see who blinks first”? Moody’s did—and said “enough.” 

Spoiler: reconciling bills with a simple majority didn’t woo them, nor did promising to pass the “One Big Beautiful Bill Act” of more tax cuts and safety-net slashes.

Politics + Economics = Moody’s Madness

  • Republicans blame Biden’s “waste, fraud, and abuse.”

  • Democrats blame Trump’s debt-slash dreams.

  • Moody’s says “You all need revenue or slices of those sausage-factory budgets.”

What It Means for Your Mortgage—and Your Coffee

Treasury yields may spike as investors demand a risk premium, so your 30-year mortgage could join the high-octane climb. 

Student loans, credit cards, latte prices—all could inch north as Treasury benchmarks shift.


Stability? “Stable” for Now

Moody’s still calls the outlook stable thanks to our “very effective” Fed and constitutional separation of powers—assuming no surprise Tweets about firing Fed Chair Powell. 

So credit your central bank… but maybe lay off debating its independence on social media!

The Road to AAA Redemption

Moody’s prescription is simple:

  1. Raise revenues—yes, higher taxes (gasp!).

  2. Reduce spending—try less “emergency” appropriations.

  3. End political circus acts—no more debt‐ceiling hostage videos.

Until then, we’ll proudly sit at Aa1, trading “perfect” for “pretty darn good.” 

As Americans, we’ve always believed in second chances—just ask the Dow Jones.

 

Please support my writing by donating $1 at https://buymeacoffee.com/doublejeopardynews

 

  1. #AAAWhoops

  2. #MoodyMystery

  3. #DebtDowngradeDrama

  4. #Aa1AndDone

  5. #FiscalFlunk

  6. #CongressionalClownShow

  7. #DebtCeilingSideshow

  8. #MortgageMeltdown

  9. #HigherYieldsAhead

  10. #OneBigBeautifulOops

  11. #PoliticalBrinksmanship

  12. #StableishOutlook

  13. #PowellOrNoPowell

  14. #SausageFactoryBudget

  15. #SecondChanceEconomy

 

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