After Moody's downgraded the United States' (US) credit rating from AAA to AA1, the country's markets continued to shake.
Giant stocks like Tesla and Apple fell, the dollar slipped, and borrowing costs soared.
Strangely, however, President Donald Trump still describes the country's economy as 'the greatest in the world.'
Ironically, while Moody's warned about the $36 trillion debt burden, Trump is pushing back on the "Big, Beautiful Bill" that would add another $3 trillion in new debt, including an extension of the 2017 tax cuts.
A White House spokesman insisted that Trump's action was driven by global confidence and the influx of inward investment reflecting a strong and dynamic economy.
Trump also reportedly rejected Moody's assessment outright, saying the agency "didn't look at the actual performance on the ground," and blamed the Biden administration for the rising deficit.
But economists are already starting to get uneasy about Trump's decision, fearing that the national debt will soar to 134% of GDP by 2035, something that could strain the US fiscal position in the long term.
Markets remain jittery. Many investors are turning to safe havens like foreign government bonds and gold, as confidence in the direction of the US economy begins to falter.
Investors are starting to back off. But Trump still believes he has a plan.
Is this the courage of a 'deal maker' or the beginning of the biggest fiscal failure in American history?
Is this the economic future you want to be completely dependent on?
