Wall Street was confronted with a sharp withdrawal on Monday, May 19, while Moody’s reduced the creditworthiness of the US government with one notch and called himself concern about the increasing debts of $ 36 trillion.
The downgrade led to broad market sales and increased alarms over the long -term stability of the American economy, but it also revived a long -term warning from financial author Robert Kiyosaki, who sees this as the start of something much deeper and more dangerous.
Markets rattle like Moody’s Slashs US Credit Rating
Moody’s, the last of the most important rating agencies to act, reduced the American creditworthiness from AAA to AA1, referring to balloon sailing and rising interest costs that threaten the ability of America to manage his debt. Investors responded quickly: Nasdaq-100 Futures decreased 1.6%, S&P 500 fell 1.2%and the DOW-Futures fell by 0.8%.
At the same time, the bond returns, with the 30 -year -old treasure chest who continued the 5% stripe for the first time in years, increased a clear sign of nervosity of investors about borrowing to the US
This was the heels of one of the strongest weeks of Wall Street in months, where the relaxation of the tensions of the US-China had risen technical shares. But those profits now seem vulnerable as the financial markets brace themselves for the ripple effects of the reduced tax image of America.
Robert Kiyosaki’s Stark Warning: ‘Deadbeat Dad’ America
Author and financial educator Robert Kiyosaki Respond strongly to the news. He compared the US with a “Deadbeat Dad” that leens recklessly without the plan to pay it back. He warned that this downgrade will probably lead to higher interest rates, activating a recession, increasing unemployment, potential banking failure and possibly a crash reminiscent of the great depression of 1929.
Kiyosaki said he provided this scenario in his book Rich Dad’s prophecy from 2013 and has long encouraged people to escape the fall of job security. Instead, he recommends embracing entrepreneurship, to invest in real estate in cash striking during decline and to save real assets such as gold, silver and bitcoin. “Depression can be the best time to get rich,” he wrote, who encouraged people to think as entrepreneurs, not to hold employees on a steady salary and a shrinking 401K.
It’s all political …
On the other hand, Peter Schiff rejected Moody’s downgrade as largely irrelevant and said that markets did not respond strongly because it is already clear that the US cannot repay its debts. He warned that standard or inflation is inevitable and argued that credit assessments are politics, not economic.
Crisis = chance
With officials of Federal Reserve who are going to speak this week, investors will closely monitor signals on how policy makers interpret the downgrade and their potential influence on interest decisions. For Kiyosaki, however, the message is already clear for those who prepare themselves wisely, with real assets and an entrepreneurs mentality, the crisis can change in opportunities.
FAQs
It indicates an increased risk in the reimbursement of the American debt, increasing loan costs and shaking investor confidence.
Yes, Moody’s reduced the American creditworthiness from AAA to AA1 in May 2025 due to rising debts.
The last downgrade was in May 2025 and marked Moody’s first reduction in more than a decade in the midst of assembly of debts.
Experts such as Kiyosaki believe that it could be, because higher interest rates can cause job losses, bank problems and slower growth.