Moody's credit rating agency, famous for failing to properly rate mortgage backed securities in 2008, has now officially downgraded the US federal government from stable to negative. The agency is reported to be having a spat with Janet Yellen and the treasury department after Yellen refused to give more money to the credit rating agency, citing that she would rather spend the money funding two wars.
Overall this week has been horrible for the US federal governments public imagine. It would seem as the tides are radically turning as faith in government institutions is crumbling to an all time low. Just this week, Merriam-Webster dictionary defined taxation as "When a government extorts its citizens for money with threats of violence." Institutions that were previously supportive of the established order to seem to be leading mutinies against regulators and lawmakers.
The downgrade ultimately seems to be politically motivated in an attempt to force the government to give Moody's more money. In no way could it be seen as an actual question of faith in the US government's solvency and ability to service the reasonable amount of debt.
Stephanie Kelton, a premiere Keynesian economist, body slammed Moody's online by saying, "It is just plain irresponsible to think the US government has a debt problem. The deficit can grow much bigger and we must grow it bigger to fix all the inequality in this country."
Robert Reich, a former government economist, was seen shaking his fist at a news stand today. Shortly after he began screaming about how Moody's was controlled by the far right Trump voters and that this credit rating was as bad as the January 6th attack on the capital. All in all, it seems like all the smart economic experts disagree with Moody's.
Yellen cried foul, saying that Moody's was putting the US government at risk and their childishness was threatening her ability to fund wars. In a press conference this morning, Yellen stated, "The Chinese needs to keep buying our treasuries so that we can fund the Israeli war, and at least pretend we still care about Ukraine. Them and many others will stop buying our bonds if Moody's keeps downgrading us. If they keep this up, we will have to start selling all our bonds to Tether and we want to avoid that if possible."
Today's market turbulence is not on pause through the weekend as for some reason bankers put the entire financial world on hold for 48 hours at the end of every week. Until then, Bitcoin will continue to go up with the bad news.