Donald Trump, the self-proclaimed “business genius,” is Steering us into a Dumpster Fire

Moody’s has changed its outlook on the U.S. from “stable” to “negative.

Donald Trump proudly touts himself as a great businessman, despite a track record marred by bankruptcies and failed ventures. I mean, how does one even manage to bankrupt a casino? They have house rules designed to ensure profitability! Yet, somehow, Trump managed to pull it off.

In a recent turn of events, Moody’s downgraded the United States’ credit rating from “Aaa” to “Aa1.” This downgrade follows a shift in the outlook for the U.S. sovereign in 2023, driven by a widening fiscal deficit and soaring interest payments. Meanwhile, the Republican-controlled Congress, under Trump’s influence, is embroiled in debates over tax and spending plans that could further deepen the nation’s fiscal abyss.

The combination of tariffs and spending cuts proposed by Trump and his Republican allies—alongside Elon Musk’s so-called Department of Government Efficiency—has revealed a concerning lack of awareness regarding the risks associated with Trump’s policies. If left unchecked, these could very well trigger a bond market rout.

Moody’s downgrade should serve as a wake-up call for Trump and Congressional Republicans to abandon their reckless pursuit of deficit-busting tax giveaways. Trump is actively urging lawmakers to extend the 2017 tax cuts for billionaires—his crowning legislative achievement during his first term. Nonpartisan analysts warn that this move could add trillions to the federal government’s already staggering $36.2 trillion debt.

Moody’s has indicated that the fiscal proposals currently under consideration by Republicans are unlikely to result in a sustained, multi-year reduction in deficits. They estimate that the federal debt burden could soar to approximately 134% of GDP by 2035, up from 98% in 2024.

Investors rely on credit ratings to gauge the risk profile of companies and governments when raising funds in debt capital markets. Generally speaking, the lower a borrower’s rating, the higher their financing costs.

So, there you have it: Donald Trump, the self-proclaimed “business genius,” is steering the good ol’ U.S. of A. straight into a corporate dumpster fire—like a casino that forgot to deal the cards!