'Artful dodging': Bloomberg editor questions Treasury Secy. over laying U.S. debt at Biden's feet - MSNBC Reports

[Rhiannon12866]

The U.S. credit rating was downgraded by Moody’s, meaning all three major credit rating firms no longer give America their best grade. This as Trump’s budget bill, which could balloon the debt even further, faces tests in Congress. Bloomberg Opinion Senior Executive Editor Tim O’Brien joins Alex Witt to discuss. - Aired on 05/18/2025.

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1. The debt increased $7.8 trillion during Trump's first term

[blm]

2. Trump's policies added twice as much to debt as Biden's

The fiscal policies of the Trump administration added twice the amount to the national deficit as have President Biden’s, a new analysis has found.
Trump’s administration borrowed $8.4 trillion during the former president’s time in office, while Biden has borrowed $4.3 trillion, according to an analysis by the Committee for a Responsible Federal Budget (CRFB), a Washington think tank.

https://thehill.com/business/4736740-trump-biden-fiscal-policy-deficit/

[LetMyPeopleVote]

3. Maddow Blog-Why the latest downgrade of the U.S. credit rating is an embarrassment for Republicans

In 2011, the GOP was responsible for a U.S. credit rating downgrade. In 2023, it happened again. And in 2025, Republicans are again to blame.

Why the latest downgrade of the U.S. credit rating is an embarrassment for Republicans - MSNBC

apple.news/AJEUHJcLzQhO...

— (@oc88.bsky.social) 2025-05-19T14:00:03.209Z

Link to tweet

https://www.msnbc.com/rachel-maddow-show/maddowblog/latest-downgrade-us-credit-rating-embarrassment-republicans-rcna207652

There is still one other ratings agency, however, that hadn’t downgraded the nation’s credit rating — at least, that is, until last week. NBC News reported:

Moody’s Ratings cut the United States’ sovereign credit rating down a notch to Aa1 from the Aaa, the highest possible, citing the growing burden of financing the federal government’s budget deficit and the rising cost of rolling over existing debt amid high interest rates.

In terms of the practical economic impact, neither the 2011 nor the 2023 downgrades did meaningful harm, though as NBC News’ report added, the decision from Moody’s might end up lifting the yield that investors demand in order to buy U.S. Treasury debt and could dampen sentiment toward owning U.S. assets. Time will tell.

But in terms of the political impact, Donald Trump’s White House tried to blame Biden for the developments — a go-to move for this administration — despite the fact that deficits exploded during Trump’s first term and were far smaller under Biden.

Even more interesting, however, was the reaction from House Speaker Mike Johnson. The New York Times noted:

In his appearance on ‘Fox News Sunday,’ Speaker Mike Johnson tried to spin Moody’s recent downgrading of U.S. credit worthiness away from House Republicans’ multi-trillion-dollar spending package and recast it as a product of ‘the Biden spending spree.’ He argued that the inferior credit rating was evidence that ‘emphasizes the very need for the legislation we’re talking about.’

.....This need not be complicated. Moody’s downgraded the United States because of the country’s national debt and fiscal future. The GOP’s reconciliation bill, filled with massive tax breaks, would add nearly $3 trillion to projected budget deficits over the next decade. (As for the idea that there was a “Biden spending spree,” now seems like a good time to remind everyone that government spending has gone up, not down, since Donald Trump returned to power.)

In other words, the fiscal problem that led to the downgrade would get worse because of the Republican’s megabill, which is the opposite of the line GOP leaders have brought to the public.

[LetMyPeopleVote]

4. Adding $5 Trillion to the debt has the credit markets worried

In 2011, the GOP was responsible for a U.S. credit rating downgrade. In 2023, it happened again. And in 2025, Republicans are again to blame.

Why the latest downgrade of the U.S. credit rating is an embarrassment for Republicans - MSNBC

apple.news/AJEUHJcLzQhO...

— (@oc88.bsky.social) 2025-05-19T14:00:03.209Z

Link to tweet

https://www.msnbc.com/rachel-maddow-show/maddowblog/latest-downgrade-us-credit-rating-embarrassment-republicans-rcna207652

There is still one other ratings agency, however, that hadn’t downgraded the nation’s credit rating — at least, that is, until last week. NBC News reported:

Moody’s Ratings cut the United States’ sovereign credit rating down a notch to Aa1 from the Aaa, the highest possible, citing the growing burden of financing the federal government’s budget deficit and the rising cost of rolling over existing debt amid high interest rates.

In terms of the practical economic impact, neither the 2011 nor the 2023 downgrades did meaningful harm, though as NBC News’ report added, the decision from Moody’s might end up lifting the yield that investors demand in order to buy U.S. Treasury debt and could dampen sentiment toward owning U.S. assets. Time will tell.

But in terms of the political impact, Donald Trump’s White House tried to blame Biden for the developments — a go-to move for this administration — despite the fact that deficits exploded during Trump’s first term and were far smaller under Biden.

Even more interesting, however, was the reaction from House Speaker Mike Johnson. The New York Times noted:

In his appearance on ‘Fox News Sunday,’ Speaker Mike Johnson tried to spin Moody’s recent downgrading of U.S. credit worthiness away from House Republicans’ multi-trillion-dollar spending package and recast it as a product of ‘the Biden spending spree.’ He argued that the inferior credit rating was evidence that ‘emphasizes the very need for the legislation we’re talking about.’

.....This need not be complicated. Moody’s downgraded the United States because of the country’s national debt and fiscal future. The GOP’s reconciliation bill, filled with massive tax breaks, would add nearly $3 trillion to projected budget deficits over the next decade. (As for the idea that there was a “Biden spending spree,” now seems like a good time to remind everyone that government spending has gone up, not down, since Donald Trump returned to power.)

In other words, the fiscal problem that led to the downgrade would get worse because of the Republican’s megabill, which is the opposite of the line GOP leaders have brought to the public.