U.S. Credit Downgrade and China’s Investment Surge: A Global Economic Shift

In today's episode, we explore the ramifications of Moody's downgrading the U.S. credit rating and the passage of the GOP's 'One Big Beautiful Bill' in the House. We also delve into the unexpected rise in Chinese Foreign Direct Investment, particularly in Europe, and its implications for global economic relations. Join us as we unpack these pivotal developments and their potential impact on the financial landscape. Sources: https://bipartisanpolicy.org/blog/moodys-downgrade-the-warning-signs-are-flashing/ https://www.franklintempleton.com/articles/2025/western-asset/end-of-an-era-moodys-downgrades-us-to-aa1 https://www.csis.org/analysis/moodys-downgrade-signals-deeper-risk-us-debt-undermining-global-leadership https://www.cbsnews.com/news/us-credit-rating-downgraded-by-moodys-loses-aaa-status/ https://www.franklintempleton.lu/articles/2025/western-asset/end-of-an-era-moodys-downgrades-us-to-aa1 https://bipartisanpolicy.org/blog/moodys-downgrade-the-warning-signs-are-flashing/ https://www.colorado.edu/today/2025/05/21/what-us-credit-downgrade-means-economy-and-your-wallet https://www.csis.org/analysis/moodys-downgrade-signals-deeper-risk-us-debt-undermining-global-leadership https://www.advisorperspectives.com/commentaries/2025/05/20/assessing-implications-moodys-u-s-rating-downgrade https://www.pgim.com/markets-motion/article/us-credit-downgrade-turns-spotlight-fiscal-risks https://bipartisanpolicy.org/explainer/whats-in-the-2025-house-republican-tax-bill/ https://www.whitehouse.gov/articles/2025/05/what-they-are-saying-one-big-beautiful-bill-clears-house/ https://www.cbsnews.com/news/house-vote-trump-tax-bill/ https://www.politico.com/news/2025/05/22/house-republicans-pass-big-beautiful-bill-after-weeks-of-division-00364691 https://www.congress.gov/bill/119th-congress/house-bill/1/text https://bipartisanpolicy.org/explainer/whats-in-the-2025-house-republican-tax-bill/ https://www.whitehouse.gov/articles/2025/05/what-they-are-saying-one-big-beautiful-bill-clears-house/ https://www.cbsnews.com/news/house-vote-trump-tax-bill/