Part 3/6:
The speaker underscored the gravity of the situation by referencing recent developments in financial markets. Moody’s, a major credit rating agency, had downgraded the United States' credit rating—an unmistakable sign of concern from international bond investors. This downgrade sent a clear message: confidence in the country’s ability to manage its debt was waning.
Consequently, bond investors demanded higher interest rates on U.S. government securities—specifically the 10-year, 20-year, and 30-year bonds—reflecting increased perceived risk. This surge in interest rates translates directly to higher costs for the government and, ultimately, for taxpayers.