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Have the trade wars and announced budget cuts really improved the economic health of the United States? Does Donald Trump’s grandiloquent speech conceal an inability to stop the country’s financial deterioration? Moody’s has downgraded the US sovereign rating, a sign that the numbers do not lie. This essential indicator reveals that the pace of reforms does not keep up with that of economic damage. The question arises: is the president a true magician or just an illusionist facing the collapse of the American economy? On May 16, 2025, Moody’s lowered the sovereign rating of the United States, dropping from “Aaa” to “Aa1”. This downgrade, the latest among the major rating agencies, marks a historic milestone. It reflects a loss of confidence in a debt considered too heavy and persistent deficits. Moody’s states: Successive US administrations and Congress have failed to reverse the trend of annual budget deficits and rising interest costs. This downgrade is not just symbolic. It warns investors and could raise the financing cost for the United States. This increase could impact the entire world economy, where the dollar remains the cornerstone. Moreover, this signal weakens America’s position as a global economic leader, casting a shadow over the country’s credibility. Stephen Moore, a Trump ally, strongly criticizes this decision, calling the rating downgrade “scandalous”. The markets reacted by a rise in Treasury bond yields, reflecting the prevailing nervousness. The challenge is huge: to break this spiral before it permanently hampers the American and global economy. The weight of American debt is at the heart of concerns. Currently, the federal debt exceeds 36 trillion dollars . Moody’s predicts it will reach 134% of GDP by 2035, up from 98% in 2024. This surge is driven by growing deficits, rising mandatory expenditures especially interest payments, and stagnant tax revenues. The report specifies that interest charges will go from 18% of federal revenues in 2024 to nearly 30% in 2035. This weight burdens the budget and limits the room for bold economic policies. Moreover, if the extension of the 2017 tax cuts is confirmed, it could further increase deficits, adding nearly 4 trillion dollars over ten years. These figures reflect an American economy increasingly strangled by its debt. Consequently, the ability to invest in growth, innovation, and competitiveness is challenged. This trend could lead to a gradual decline in living standards and a weakening of American economic institutions. The American economy is going through a delicate period. The trade war initiated by Trump, with its tariffs, has created tensions disrupting global supply chains. Furthermore, budget cuts aim to reduce public spending, but their impact is uncertain. The inability to stabilize the debt fuels concerns. Efforts to reduce deficits face political opposition and structural constraints. The fragility of the financial system is felt, particularly with rising bond yields. This context creates an atmosphere of uncertainty for businesses and consumers. Faced with these challenges, voices are rising to advocate an alternative to mere budget cuts. Among them, bitcoin is gaining popularity as a safe haven and diversification tool. Donald Trump himself seems to pay particular attention to this new factor , which could influence economic strategy in the coming years.

Macro EUR/USD Eventually these levels will get hit Whether a war happens or big black swans and depression happen or I don't know what events elites will pull off to bring those levels I will be playing them. This is the game and those are rules and I just play following those rules It's sad that this is the reality, killing people or spreading fear is the tool they use to manipulate markets (movies on these: James Bond (Casino Royale)- Lift) and I am sure there are many more but just mentioned the ones that are also entertaining to watch.

🚨 Is the Bond Market Sounding an Alarm That Trump Can’t Silence? Rising yields, a $36T debt, and a shrinking money supply spell trouble. @steve_hanke unpacks the US fiscal deficit, tariff chaos, and Congress’ inaction driving this surge 👇🏻

Why Are Bond Yields on the Rise? 📈 Trump’s erratic tariffs have shaken markets, pushing 10-year yields from 4.17 to 4.43. Hanke says it’s not inflation– it’s fiscal mismanagement.

The Return of the Bond Vigilantes 💸 Investors are dumping bonds over a $1.8T deficit and $36T debt. “Last month’s ten-year Treasury auction was a disaster. It saw virtually no central bank or primary dealer buying,” Hanke told BeInCrypto.