Winter Is Coming...For the U.S. Economy? A Dragon Queen's Take on Downgrades and Trade Wars

Moody's Blues: Not Just a Song Title Anymore

My loyal subjects it appears the realm across the Narrow Sea is facing a bit of a…situation. Moody's those stuffy Westerosi Maesters of finance have downgraded the U.S.'s credit rating. Seems a tad dramatic doesn't it? Like Cersei discovering a new wine cellar. But unlike a Lannister always paying their debts (hah!) the U.S. Treasury yields are soaring higher than Drogon on a windy day. This means borrowing is getting pricier. 'Dracarys' to those interest rates!

The Iron Bank Cometh...For Everyone

Ray Dalio one of the wealthiest men in the United States sounds eerily like Varys whispering in my ear about hidden dangers. He warns the downgrade is sugarcoating the threat to U.S. Treasuries. He claims that the U.S. government may print more money to pay its debt which is not going to end well at all. My dragons know how to handle piles of gold but I am not so sure about the U.S. government. After all a Lannister always pays their debts but how reliable is the U.S. government at doing so?

A Trade Truce? More Like a Tryst with Uncertainty

The U.S. and China have a 'temporary trade truce'. A truce? As if I haven't heard that song and dance before. It reminds me of when I thought I could trust Littlefinger. Now China is accusing the U.S. of undermining their trade agreement pointing fingers like unruly children squabbling over a toy dragon. The U.S. is also warning about Chinese chips which is considered 'discriminatory' and 'market distorting'. It is like calling my dragons 'scaly lizards'.

Bondage and BlackRock: Finding the Sweet Spot

While panic spreads like wildfire through King's Landing Rick Rieder from BlackRock claims to have found a 'sweet spot' in bonds. Seems like everyone is looking for a sweet spot whether it be a good investment or the Iron Throne. Anyway this sweet spot comes with high returns which is always a good thing. Even for those who aren't Mothers of Dragons.

Trump's Deals: One Stop Shopping or Highway Robbery?

Ah Trump the American King across the water wants a 'one stop shopping' deal with South Korea regarding trade and defense. He wants Seoul to pay for troops stationed there in one single deal. Seems he wants everything like Euron Greyjoy eyeing the Iron Throne. However experts believe this transactional approach may damage the U.S.'s credibility which could end up isolating them like the Night's Watch guarding the Wall.

My Royal Decree: Prepare Yourselves!

So what does this all mean for you my loyal subjects? It means dark clouds are gathering. Vigilance is key. Keep your eyes open your dragons fed and your wits about you. 'Fire cannot kill a dragon,' but economic woes? Well that's a different beast altogether. Be ready. Winter is coming. Maybe not in Westeros but in the world economy!