The numbers don’t lie: America’s financial health is deteriorating fast. Moody’s warned this week that the US faces a multi-year decline in fiscal strength, with budget deficits ballooning and debt becoming increasingly unaffordable. The sobering report projects debt-to-GDP will soar to 130% by 2035 up from 100% in 2025, while interest payments could eat up 30% of government revenue – triple 2021’s levels.What makes this especially alarming? The US is now skating on thin ice with its last remaining AAA credit rating. Moody’s – the final holdout among major agencies – admits even in a best-case scenario, America’s debt outlook looks worse than other top-rated nations. Fitch downgraded the US sovereign rating to AA+ from AAA in 2023, following S&P's 2011 move, citing fiscal deterioration and recurring debt ceiling standoffs that jeopardise the government's ability to meet its obligations. And with President Trump’s new tariffs rattling markets and fuelling inflation fears, the dollar’s global dominance is now doing heavy lifting to preserve confidence. One thing’s clear: investors can’t count on business as usual.
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