Stephen Moore: Reduction of federal credit in Moody appears to be political bias against Trump’s tax discounts

I am concerned about fugitive government spending and debts like anyone else. But I must wonder if it is likely that there is more enough credit and biased than Moodyz – The agency, which has just reduced federal bonds from the AAA classification.

As for the context, this is the agency, which has given the highest credit categories to the mortgage -backed securities to the eve of the greatest financial crisis since the Great Depression, as it erase trillion of investor wealth.

The National Office for Economic Research issued this useful reminder of Modi’s collusion in the collapse:

“The credit crisis in the period 2008-2009 was among the many ways a credit classification crisis. Organized financing products, such as the mortgage-backed securities, which represent more than $ 11 trillion of distinguished American debt … More than half of the securities that were classified by MOODY, are designed at the highest level of possible credit that is usually kept for the paper that is held significantly. 36,346 classified Moody slices, and turned nearly a third of the slides that have been reduced.

Ironically, this came after Moody’s agreed, in 2017, to pay a penalty worth $ 864 million to contribute to the crisis due to its defective assessments. When exactly?

MOODY reduces the American credit rating on the height of debt

After the mortgage disaster. So I have to ask, how can Modi stand in judgment on the merit of anyone’s credit?

This will be like setting Pee Wee Herman as an investment consultant.

The problem is not just a busy record of moody less than stars. Moodyz is biased politically. The largest budget rupture hole was the head of $ 5 trillion Joe Biden Expanding. With the spread of the current government bonds. But it is strange that no credit reduction was issued while Baiden was in the White House.

Now this Donald Trump It is the president and the sky apparently falling. Senior economists in tax cuts against Moody’s regularly, but it is believed that government spending is an incentive for the economy.

Get Fox Business on the Go by clicking here

What is Moody’s and other credit rating agencies Still I cannot understand that tax cuts are like Ronald Reagan In 1981, the Trump bill for the year 2017 for the economy and the passage of time reduces the burden of debt as a share of the nation’s wealth. More people who work and less than people in social welfare are a great way to reduce debt spending. If we can get the growth rate of up to 3 % – which President Trump aims to – the debt burden begins to shrink.

Remember that the full and credit faith of the US government is behind the treasury bonds. This is very close to the IronClad guarantee for payment. Yes, we have a problem with spending in Washington for sure, but we are not Zimbabwe.

The timing of this discount is particularly suspicious. Is it a coincidence that it comes exactly as the Congress votes on Trump tax reduction?

Click here to read more on Fox Business

Only two months in the past two months, President Trump has obtained at least a trillion dollars of new investment capital obligations to come to these beaches. Why is this golden investment rush flowing into a nation at risk of failure to pay?

Investors may know what Moody does not do. Trumponomics is useful for the American economy – and for those who invest in America.

Stephen Moore is the co -founder of unleash prosperity and a great economic advisor in Trump.