November 4, 2018

Moody's says gap between rich and poor threatens U.S. Triple-A bond rating thanks to republican tax cuts

For all virtually all of the last 100 years, the U.S. government has had the lowest cost to borrow money (which is a continual process) of any country in the world. Now the wealth gap threatens to destroy that track record and make borrowing more expensive and thus increase the deficit. On Oct. 8 Bradley Keoun, writing for TheStreet.com, reported that President Trump's $1.5 trillion of tax cuts are forcing the U.S. Treasury to cover the gap by borrowing money in unprecedented amounts. This huge increase in borrowing threa=tens our country's creditworthiness.

The tax cuts have blown a huge hole in the federal budget, increasing the deficit to the highest amount in 6 years and skyrocketing the national debt past $21 trillion.
Credit analysis firm Moody's Investor service concluded that the growing gap between rich and poor is threatening our nation's credit rating.

Remember when the Republicans used to be the deficit hawks? No longer.
U.S debt has been considered the safest investment. While the interest rate is low, the likelihood of getting repaid was always 100%. Now that certainty is at risk.

According to Moody's "the $1.5 trillion in tax cuts have made the rich richer, while forcing the less-wealthy to cover a bigger share of the cost of government."
Both income inequality and wealth inequality are growing. 
And guess who owns the lion's share of our debt... yup, China.

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