In recent developments, Moody’s has downgraded US debt to an “Aa1” rating, citing a rising debt load and interest rates that significantly surpass those of similarly rated sovereigns. This downgrade signals waning global confidence in the US financial landscape. Additionally, nations worldwide have become net sellers of US debt, indicating a strategic divestment from what was once seen as a safe bet. The downgrade, avoidable had the agenda been to salvage and repair the US Dollar by employing monetary measures of interest rate hikes and measures to cap and reduce spending, comes as no surprise.
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