MOODY categories have reduced long -term source and large non -guaranteed classifications to the United States from AAA to AA1 on Friday. This reduction represents the first place in which the United States abandoned the highest credit rating from a leading credit classification agency.
This decision was based on the continuous accumulation of debts in consecutive departments. In a modern update on social media, the most prominent Gurmeet Chadha, the administrative partner & CIO at Compcircle, the fact that Moody took a lot of time to admit that the American credit rating is not AAA.
For years, agencies such as Moody’s, S&P and Fitch have been accused of having holidays for US debt escalating, repeated roof approvals, and unsustainable financial practices. Experts criticized that these agencies themselves are often fast in issuing discounts or red flags for emerging economies on much lower fears.
“Moody’s took many years to realize that the American credit rating is not AAA … The world is aware that the United Nations, which, the World Trade Organization, the International Workers Organization, international classification agencies – all these useless and biased organizations … have their own agenda,” I noticed Chad in the X.
MOODY’s is the latest three main credit rating agencies to reduce their federal government merit. Standard & Poor’s reduced federal debts in 2011, followed by Fitch in 2023.
Moody’s is expected to accommodate in a statement that the federal deficit is expected to expand, and approaches about 9 % of the American economy by 2035, an increase of 6.4 % in 2024. This growth is mainly paid through the increase in debt interest payments, increased spending on entitlement rights, and relatively low revenue generation.
The US expectations have been changed from negative to stable, indicating the financial challenges caused by more than ten years of increasing government debt expenses and benefits. This update follows the recent consumer price index report in April, which showed a decrease in inflation after President Donald Trump’s tariff strategies. Reducing the classification emphasizes a decrease in the ability to withstand debt costs compared to other higher category entities.
Chad also added that in an increasingly, people around the world wonder about the importance and transfer of international bodies such as the United Nations (the United Nations), the World Health Organization (the World Health Organization), the World Trade Organization (WTO) and the International Monetary Fund (IMF).
These institutions, which were originally established to promote global peace, health, fair trade, and financial stability, are widely widely considered to be politicized and ineffective, and are often in line with the interests of some dominant countries.
Recently, the International Monetary Fund (IMF) decision has become a billion dollars to Pakistan through the Fund’s Fund (EF) and an additional $ 1.4 billion through the RSF) under intense audit. This comes shortly after a terrorist attack in Paalgam from Kashmir and amid the growing tensions between India and Pakistan.
Critics, including Indian officials, strategic experts and voices in the region and beyond, raised concerns about the timing of exchange. Many believe that it can hinder the efforts to cancel the manufacture of the situation. Total payments under the program are now $ 2.1 billion, as RSF funds are supposed to help Pakistan in climate weaknesses.
It should be noted that India has chosen to refrain from voting at the meeting of the Executive Council of the International Monetary Fund, which indicates its opposition within the borders of the International Monetary Fund protocol. Unlike the United Nations, where the two countries have the option to make a “no” vote, members of the International Monetary Fund Board of Directors are limited to voting in their favor or abstaining – there is no official mechanism for explicit rejection.
India has constantly confirmed that Pakistan is constantly using the International Monetary Fund assistance. In the past 35 years, Pakistan has participated in 28 programs from the International Monetary Fund, including four during the past five years. However, there was the minimum progress in terms of implementing structural reforms or achieving sustainable economic stability. Former Foreign Minister Kanwal Cibal described the move of the International Monetary Fund “terrible optics” and announced its western bias.
Yashwant Deshmukh said the box “has blood on his hands”, while Sushant Sarin accused him of the Pakistan army.
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