Moody’s credit rating agency recently downgraded the credit rating of the United States government from Aaa to Aa1 due to the increasing national debt. The agency’s announcement on May 16 highlighted that US lawmakers have not been able to control annual deficits or reduce spending, leading to a growing national debt. Despite the downgrade, Moody’s maintained a positive outlook on the long-term health of the US economy, emphasizing its robust economy and the US dollar’s status as the global reserve currency. The credit downgrade, which is only one notch on the 21-notch rating scale used by Moody’s, drew mixed reactions from investors. Gabor Gurbacs, CEO of Pointsville, criticized the agency’s assessment, while Jim Bianco argued that the credit outlook did not reflect a real downgrade in the US government’s creditworthiness. The US government debt has surpassed $36 trillion, with no signs of slowing down, leading to concerns about bond yields spiking and debt service payments increasing. This situation could create a vicious cycle where the government needs to offer higher yields to attract investors, further inflating the national debt. As the debt situation worsens, investors may lose faith in US government securities, impacting the overall economy.