Chump's Consequences

[old man emu]

Que sera, sera.

[facthunter]

Not possible.  Your golf gets better the More you practice and you can't win a lottery without buying a ticket.  ,, Another line in your song is "The future is not Ours to see". Nev

[Jerry_Atrick]

Has Chump inadvertently increased Aussie beef exports: 

 

[Jerry_Atrick]

Oh boy,  is not good: https://www.reuters.com/markets/us/moodys-downgrades-us-aa1-rating-2025-05-16/

[Jerry_Atrick]

Was on my tablet when I wrote the above. post. The reason why this is no good is because Moodys was the last major ratings agency to take the US of its AAA rating, which is the first time, eiother ever or in a bloody long time that has been the case. The consensus of the all three major agencies signals some serious headinds that would allow you to land an A380 on a 20c piece.  Maybe not quite that bad.

 

Interestingly, the treaury and treasury futures have been stable, which tells us the marktets think it is not a bad thing or it is already priced in, but since yields haven't shot up massively over the last week or so, I am not sure that is the case. Though, in the G7 countries, the US is and has been for a while, the highest yielding over 10 year treasuries.

 

It can't all be blamed on Chump, however. The US has been living outside its means for a very long time. However, Chumps 2017 and current policies are steepening the curve  andd this outlook is what prompted Moody's to finally knock the US rating down a notch.  It is still a safe bet, so I may be overplaying it a bit. However, it has lost its risk free status, and that will weigh in on the markets.