The rating co Moody’s this morning joined S&P and Fitch in downgrading the quality of U.S. debt from AAA to AA1. S&P made the downgrade 14 years ago and Fitch was two years ago, so this isn’t a big giant surprise. But it is knocking bond prices lower and sending rates higher.
Moody’s downgrade comes with a debt to GDP of 123%, higher than most nations. This year, the deficit as a percentage of GDP has risen 6.4%. If debt acceleration were an Olympic even, the U.S. would easily take the gold medal.
