Recession Watch: Unsustainable Interest Rates

And falling credit scores

This week, Moody’s, the last bond rating agency that still gave the US a perfect score, joined its peers by cutting Treasury bonds from Aaa to Aa1. To which you might respond, “Duh. How can a country with a debt-to-GDP of 124% be an investment-grade credit at all, let alone AAA?

You’d be right, of course. Sovereign credit scores are premised on the fact…