Moody’s credit downgrade is a macro game changer. What now?

Matein Khalid

While I was not surprised by Moody’s decision to reduce the sovereign credit rating of the USA. Trump’s White House with this movement. After all, Trump could invoke the International Law on Emergency Economic Powers to handcuff the entire Moody Executive Board for a forced stay at the Fed Club or even detclar or close the credit rating agencies for this non-American act of Lèse-Majest.

However, nothing good will leave this movement for risk assets or the US dollar. The US Treasury Bonus performance will rise, the S&P 500 will take off on Monday and the Republicans are now a cult of neo-maoist personality for the tariff man instead of a pragmatic and rational political party becomes ballistic in his political outrage.

The moment of this movement is Godowful. The S&P 500 index has increased 20% stellar since Trump made a change of meaning with the Chinese rate and the need to say goodbye to the “Loco/Loser” Jay Powell of the Federal Reserve. It will also amplify the existing decrease in both consumer and business confidence, as well as increase credit risk/liquidity premiums in FHA mortgage debt, cars loans, credit accounts receivable, student debit, garbage bonds and safety rooms backed by assets. The Moody’s movement will also reinforce the embryonic megatrend towards a change in allocation of strategic assets by the global investors of the backback assets, the dominant issue in the financial markets after the day of liberation for MOI.

I did not need Moody’s to illuminate that something was dangerously bad in an economy of $ 28 billion with $ 35 billion in debt and almost $ 2 billion in annual budget deficit that Uncle Sam, the monetary holder of the world. The global sovereign debt market is full of credit at Miss prices and the United States is only the tip of a very doubtful intercontinental iceberg, where Cognoscenti Hurgado can earn money with the money of the confidence of the straight lamb, my country.

Nicolo Machiavelli wrote: “Do not trust the false promises of the borrowed” after a lifetime navigating the murderous policy of Renaissance Florence. As a citizen of a military diktat third world that has just received a gratitude gift from $ 1 billion of Trump IMF last week for the bee starts from a brilliant town, especially since I obtained 4 degrees from his marijuana, he gave me the name of Penne Penne!

Moody’s will increase the pressure on money administrators to obtain profits in US shares and corporate bonds. Since Moody’s has thrown the first stone into the United States Treasury bond market, the reference point for the risk in debt, the shock waves of the credit reduction will not even save even the darkest advanced position of the world financial village. The only consolation is that, unlike the case in August 2001, Dr. Louis Pangloss would be price at a skeptical risk premium in the Tsunami of the Treasury Supply in Process, given the fiscal vudomic in Washington and the ominous drummer of the commercial war.

Although none of this is new in the Wall Street Cognenti, the highest interest rates in Uncle Sam Ioous, possibly a 5% yield in the 10 -year United States Treasury note, means a bloodbath for global debt markets and a private peak, fafftes, fafftes, will have been done, Willed Willes Wilts Wilthedolded Nottot, it will be An explosive land note in investor investors ports. Fly, Robin, Fly. Up, to heaven.

I hope that the mother of all the exchange exchanges of the Bond T at assets not dollars, not papers and safe refuge, since the cost of the debt service for the planet borrowers simply increased dramatically. This also means that Illicid assets such as private credit and real estate could prove leprosy in the coming months, especially in dollar -related currencies, where devaluation cannot act as a macro shock absorber.

It was a bit charitable for Moody’s for Rigid Trump with this credit bomb after it has just won $ 2 billion in commitments to invest in the United States of three states of Gulf Petro. It would be a national disaster if Qatar threw the delicious Boeing 747 golden plays of $ 400 million that Trump desperately needs as its presidential library after retirement jet worldwide.

Young, there is no need to feel depressed. I said, young, remember the ground

Matti Trade du Jour? Brief Greenback, Bear Steepners in Bondland, Short Crazy Val Us Equities, Short Tesla (TSLA) since you are nothing more than a hound dog since Dege only cut the skinny at $ 150 billion and not the promised magic planet of $ 2 billion by Elon. Cut MAG-7, short real estate, short private credit, long gold, long cryptography, long sterling, lar.

Also published in Medum.