LION ALERT! US DEBT WAS JUST DOWNGRADED!

From Greg M

Lions…

Moody's just downgraded its credit rating of the United States by a notch to "Aa1" from "Aaa", citing rising debt and interest "that are significantly higher than similarly rated sovereigns."

What this means. First. The U.S. is running massive budget deficits. The fiscal deficit in the year that began October 1 is already running at $1.05 trillion, 13% higher than a year ago. (No surprise to anyone who follows my work). And this will get worse from here. TARIFFS WILL NOT FIX THIS.

Now. Borrowing costs will rise. Treasury yields could spike as investors demand higher returns for greater risk. That increases the cost of EVERYTHING.

Liquidity could fracture FASTER. If faith in Treasuries wanes, it could trigger a cascade of sell-offs, from bonds to stocks to real estate.

The Fed will buy more debt. We are already seeing stealth QE. This downgrade could be the trigger for a full return to money-printing madness.

Lions… This is historic. It signals that the US financial system is officially on downgrade trajectory, permanently.

Prepare. Hard assets. Real money. Tangible value.

The Fed. Their next moves will show how close we are to full-blown crisis.

GM