NYT: Moody’s Changes U.S. Credit Outlook to ‘Negative’
Moody’s reaffirmed America’s credit rating at the highest AAA level but expressed concern about the nation’s fiscal trajectory amid congressional dysfunction.
https://twitter.com/_/status/1723093232295231929
Yesterday, the US government tried to borrow $24 billion by selling a bunch of 30 year debt.
It was a huge disaster. In order to get enough people to buy, the rate had to dramatically increase. Even then, then primary dealers had to buy 25% of the debt. The primary dealer are the buyers of last resort who have to buy.
China, Japan, Saudi Arabia, Russia … none of them are buying our debt. In fact, most are selling what they already have.
With few buying, the US government is borrowing more than ever. $1.5 trillion in the past 4 months and they announced another $1.5 trillion in the next 6 months. The US government will have to offer higher and higher rates to attracted lenders.
https://twitter.com/_/status/1722960100569104862
https://twitter.com/_/status/1723093274246696968
https://twitter.com/_/status/1722772607945130326
https://twitter.com/_/status/1723107429842297252
https://twitter.com/_/status/1723110860372037875
h/t DOORBERT