
The Kobeissi Letter|May 16, 2025 21:32
If this is not a wake up call, then what is?
Moody's just downgraded the United Sates' credit rating for the FIRST time in history.
The reason: An unsustainable path for US federal debt and its resulting interest burden.
Moody's notes that the US Debt-to-GDP ratio is on track hit 134% by 2035.
Federal interest payments are set to equal ~30% of revenue by 2035, up from ~18% in 2024 and ~9% in 2021.
Furthermore, deficit spending is now at World War 2 levels as a percentage of GDP.
The US debt crisis is our biggest issue with the least attention.
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