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      The US credit rating has been downgraded. But there’s an easy fix for our debt | Robert Reich

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      On Friday, the credit rating of the United States was downgraded. Moody’s, the ratings firm, announced that the government’s rising debt levels would grow further if the Trump Republican package of new tax cuts were enacted. This makes lending to the US riskier.Moody’s is the third of the three major credit-rating agencies to downgrade the credit rating of the United States.So-called “bond vigilantes” have already been selling the US government’s debt, as the Republican tax package moves through Congress. They’re expected to sell even more, driving long-term interest rates even higher to make up for the growing risk of holding US debt.Some rightwing Republicans in Congress are using the Moody’s downgrade to justify deeper spending cuts in Medicaid, food stamps and other social programs that lower-income Americans depend on.But, hello? There’s a far easier way to reduce the federal debt. Just end the Trump tax cuts that mainly benefit the wealthy and big corporations – and instead raise taxes on them.I’m old enough to remember when the US’s super-rich financed the government with their tax payments. Under Dwight Eisenhower – hardly a leftwing radical – the highest marginal tax rate was 91%. (Even after all tax credits and deductions were figured in, the super-rich paid way over half their top marginal incomes in taxes.)But since the Reagan, George W Bush and Trump 1 tax cuts, tax rates on the super-rich have plummeted.So instead of financing the government with their taxes, the super-rich have been financing the US government by lending it money.skip past newsletter promotionafter newsletter promotion(You may have heard that the US’s debt is held mainly by foreigners. Wrong. More than 70% of it is held by Americans – and most of them are wealthy.)This means that an ever-increasing portion of the taxes from the rest of us are dedicated to paying ever-increasing interest payments on the debt – payments that go largely to the super-rich.So when the debt of the United States is downgraded because Trump Republicans are planning another big tax cut mainly benefiting the rich and big corporations, most Americans could end up paying in three different ways:

      They’ll pay even more interest on the growing debt – to the super-rich.

      They’ll pay higher interest rates on all other long-term debt. (As higher rates on treasury bonds waft through the economy, they raise borrowing costs on everything from mortgages to auto loans.)

      The debt crisis will give Republicans even more excuse to do what they’re always wanting to do: slash safety nets. So many Americans could lose benefits they rely on, such as Medicaid and food stamps.
      The “bond vigilantes” are not the cause of this absurdity. Neither is Moody’s or the other credit-rating agencies. Nor, for that matter, is the growing national debt.What’s the underlying cause? Just follow the money. It’s the growing political power of the super-rich and big corporations to lower their taxes at the expense of most Americans.

      Robert Reich, a former US secretary of labor, is a professor of public policy emeritus at the University of California, Berkeley. He is a Guardian US columnist. His newsletter is at robertreich.substack.com More

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      Maga Catholics are on a collision course with Leo XIV. They have good reason to fear him | Julian Coman

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      In the outer reaches of the Magasphere, it would be fair to say the advent of the first pope from the US has not been greeted with unbridled enthusiasm. Take Laura Loomer, the thirtysomething influencer and conspiracy theorist, whose verdict on Leo XIV was as instant as it was theologically uninformed: “Anti-Trump, anti-Maga, pro-open Borders, and a total Marxist like Pope Francis.” Also doing the rounds on X was a short summary of Leo’s supposed transgressions before ascending to St Peter’s chair: “Trashed Trump, trashed Vance, trashed border enforcement, endorsed DREAMer-style illegal immigration, repeatedly praised and honored George Floyd, and endorsed a Democrat senator’s call for more gun control.”So far, so tedious. The comic-book casting of the new pope as a globalist villain in the US culture wars is traceable back to his predecessor’s impact on liberal opinion a decade ago. Pope Francis’s sometimes lonely championing of progressive causes, such as the rights of migrants, gave him a kind of liberal celebrity and led Time magazine to name him “person of the year” in 2013. Pope Leo, born in Chicago, has been pre-emptively caricatured by much of the Maga right as a continuity pontiff who will, in effect, front up the religious wing of the Democratic party.Leaving the simplistic conflation of religious perspective and political positioning aside, the truth is far more interesting than that. It may also be more challenging for Catholic Maga luminaries such as the vice-president, JD Vance, the secretary of state, Marco Rubio, and Donald Trump’s sometime adviser Steve Bannon if they are serious about their faith.Bannon and Vance – a Catholic convert – are representatives of a traditionalist movement in the church, which sought to undermine Francis’s papacy at every turn and has become a kind of theological vanguard for the “America first” era. In January, Vance notoriously invoked St Augustine to justify the Trump administration’s decision to cut international aid and impose a brutal immigration crackdown. One of Francis’s last acts was to refute the vice-president’s reduction of the Augustinian concept of neighbourly love to a version of “charity begins at home” (though delivering a papal rebuke was not enough to spare him from a visit from Vance the day before he died).But it would be too easy (and too reminiscent of their own performatively aggressive approach) to simply dismiss the Maga Catholics as theologically beyond the pale. Many Catholics might, for example, legitimately sympathise with Bannon’s analysis of the neglect of working-class interests in 21st-century western liberal democracies. The deepening inequality and corrosive individualism of our times is seriously at odds with Catholic social teaching, which has historically promoted the dignity of labour, social solidarity and a just wage.The problem is that, in the absence of a leftwing economic populism to challenge the injustices of the globalised era, a rightwing version has filled the gap in the US and beyond. Its form of solidarity is nationalistic and insular, its cultural outlook is xenophobic and its political style is authoritarian and deliberately confrontational. The Maga critique of “globalism” is not limited to the neoliberal economic world order, also condemned by the last three popes; it extends to a repudiation of the foundational Catholic commitment to universality, expressed through compassion for the stranger and a sense of the world as a shared common home.Enter Pope Leo. The most geographically diverse conclave in church history was surely aware that in choosing an American to succeed Francis, it was setting up a potential showdown between the Vatican and Trumpian nationalism. The new pope’s choice of name is a sign that he recognises the scale and the novelty of the challenge that the rightwing populist turn represents.The last Leo, a patrician Italian elected to the papacy in 1878, made it his mission to confront the ruthless laissez-faire economics unleashed by the Industrial Revolution and the emerging Marxist response to its cruelties. In Rerum Novarum, his groundbreaking 1891 papal encyclical, Leo XIII laid out swingeing criticisms of the greed that placed profit before people and allowed extreme divides in wealth to undermine the common good. At the same time, in terms that were to prove tragically prescient, he identified in early communist movements a dangerous idolatry of the state and a lack of respect for individual autonomy and rights.Last weekend, before his first mass in St Peter’s Square, Leo XIV explicitly set himself the task of following in his 19th-century predecessor’s footsteps. That would mean, he told a Rome conference, addressing “the dramatic nature of our own age, marked by wars, climate change, growing inequalities, forced and contested migration, stigmatised poverty, disruptive technological innovations, job insecurity and precarious labour rights”.The daunting length of that list, and the interlocking, global nature of its crises, should be viewed as an early critique of the Maga worldview. In Leo XIII’s day, the burgeoning Marxist movement incubated a totalitarian strain that would go viral in the 20th century. The success of Trumpian nationalism is also in part a response to the depredations of capitalism, this time in the context of globalisation. But its authoritarian evangelists have hijacked the working-class cause to inflict new injustices on migrant “invaders” and have lost sight of the need for global cooperation to prevent an environmental catastrophe that threatens the poor most of all. The strategy has proved electorally astute. But as Leo will surely make clear, it has nothing to do with Catholicism.In a column published at the weekend, the American Catholic commentator Sohrab Ahmari referenced a sermon by Leo from last year, in which the future pope acknowledged that the issue of migration “is a huge problem, and it’s a problem worldwide” that needed to be solved. This recognition, Ahmari suggested, could at least open up the possibility of fruitful future dialogue with the Maga Catholics in and around the White House.He failed, however, to quote the sermon’s next passage: “Every one of us, whether we were born in the United States of America or on the North Pole, we are all given the gift of being created in the image and likeness of God, and the day we forget that is the day we forget who we are.” Words for Vance and Rubio, who met Leo after Sunday’s inaugural mass in Rome, to ponder.

      Julian Coman is a Guardian associate editor More

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      Trump news at a glance: president unveils Golden Dome project – and claims Canada is interested

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      Donald Trump has announced that his administration will move forward with developing a multibillion-dollar missile defense system, called “Golden Dome”, and claimed that Canada was interesting in being part of it.“Once fully constructed, the golden dome will be capable of intercepting missiles even if they are launched from other sides of the world, and even if they are launched from space,” Trump said. “Forever ending the missile threat to the American homeland.”The US space force general Michael Guetlein will oversee implementation of the project, Trump said. The selection of Guetlein, vice-chief of space operations at the space force, means the elevation of a four-star general widely seen at the Pentagon to be competent and deeply experienced in missile defense systems and procurement.Here are the key stories at a glance:Trump rolls out Golden Dome missile defense project Flanked by the US defense secretary, Pete Hegseth, Trump announced the Golden Dome missile defense project on Tuesday in the Oval Office. The president said he wanted the project to be operational before he left office, and added that Republicans had agreed to allocate $25bn in initial funding and Canada had expressed an interest in taking part.What exactly Golden Dome will look like remains unclear. Trump said on Tuesday evening that he had settled on architecture for the project and suggested the total cost of putting it into service would reach $175bn. He provided no further details.Read the full storyTrump officials ‘illegally deport’ Vietnamese and Burmese migrants Immigrant rights advocates have accused the Trump administration of deporting about a dozen migrants from countries including Myanmar and Vietnam to South Sudan in violation of a court order, and asked a judge to order their return.Read the full storyRubio clashes with Democrats over Afrikaner ‘refugee’ statusMarco Rubio, the US secretary of state, has defended the Trump administration’s decision to admit 59 Afrikaners from South Africa as refugees after Tim Kaine, a Democratic senator from Virginia, said they were getting preferential treatment because they were white.The clash between Rubio and Kaine, Hillary Clinton’s former running mate, came a day before South Africa’s president, Cyril Ramaphosa, was due to meet Donald Trump at the White House in an encounter that promises to be highly charged thanks to the controversy surrounding the Afrikaner arrivals.Read the full storyTrump bangs drum for tax bill as some still hold outDonald Trump traveled to the Capitol on Tuesday to insist that the fractious House Republican majority set aside their differences and pass his wide-ranging bill to enact his taxation and immigration priorities.In a speech to a closed-door meeting of Republican lawmakers, the president pushed holdouts to drop their objections, afterwards saying: “I think we have unbelievable unity. I think we’re going to get everything we want, and I think we’re going to have a great victory.”But it is unclear if the president’s exhortations had the intended effect as at least one lawmaker said afterwards they still do not support the bill.Read the full storyMusk claims he won’t spend as much on politicsElon Musk claimed that he would decrease the amount of money he spends on politics for the foreseeable future. If true, the reduction would represent a significant turnaround after the world’s richest person positioned himself as the US Republican party’s most enthusiastic donor over the last year.Read the full story‘Plenty of time’ to fix climate crisis, says Trump aideThe US has “plenty of time” to solve the climate crisis, the interior secretary, Doug Burgum, told a House committee on Tuesday.The comment came on his first of two days of testimony to House and Senate appropriators in which he defended Donald Trump’s proposed budget, dubbed the “one big, beautiful bill”, that would extend tax reductions enacted during Trump’s first term, while cutting $5bn of funding for the Department of the Interior.Read the full storyMost US companies say tariffs causing higher pricesA majority of US companies say they will have to raise their prices to accommodate Trump’s tariffs in the US, according to a new report. More than half (54%) of the US companies surveyed by the insurance company Allianz said they will have to raise prices to accommodate the cost of the tariffs.Read the full storyPatel scraps FBI watchdog teamThe FBI director, Kash Patel, has scrapped a watchdog team set up to scrutinise a warrantless surveillance law he previously claimed was being abused to target supporters of Donald Trump.Read the full storyWhat else happened today:

      Charles Kushner, the father of Donald Trump’s son-in-law Jared, has secured US Senate confirmation to serve as the nation’s ambassador to France.

      A participant in the January 6 attack pardoned by Trump was recently arrested for burglary and vandalism in Virginia.

      The Trump administration lifted a stop work order on a $5bn windfarm off the New York coast after negotiations – but cancelled plans for a gas pipeline could be revived.
      Catching up? Here’s what happened on 19 May 2025. More

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      What is temporary protected status and who is affected by Trump’s crackdown?

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      Millions of people live legally in the United States under various forms of temporary legal protection. Many have been targeted in the Trump administration’s immigration crackdown.The latest move has been against people who have what’s known as “temporary protected status” (TPS), which grants people the right to stay in the US legally due to extraordinary circumstances in one’s home country such as war or environmental catastrophe.The Trump administration has in recent weeks announced its plan to end TPS for Haitians, Venezuelans, Afghans and Cameroonians. The move may force more than 9,000 Afghan refugees to move back to the country now ruled by the Taliban. The administration also is ending the designation for roughly half a million Haitians in August.Here’s what to know about TPS and some other temporary protections for immigrants:What is temporary protected status?Temporary protected status allows people already living in the United States to stay and work legally for up to 18 months if their homelands are unsafe because of civil unrest or natural disasters.The Biden administration dramatically expanded the designation. It covers people from more than a dozen countries, though the largest numbers come from Venezuela and Haiti.The status does not put immigrants on a long-term path to citizenship and can be repeatedly renewed. Critics say renewal has become effectively automatic for many immigrants, no matter what is happening in their home countries. According to the American Immigration Council, ending TPS designations would lead to a significant economic loss for the US. The non-profit found that TPS households in the country earned more than $10bn in total income in 2021, and paid nearly $1.3bn in federal taxes.What is the latest supreme court ruling on Venezuelans?On Monday, the supreme court allowed the administration to end protections that had allowed some 350,000 Venezuelan immigrants to remain in the United States.Many Venezuelans were first granted TPS in 2021 by the Biden administration, allowing those who were already in the US to apply for protection from deportation and gain work authorization. Then, in 2023, the Biden administration issued an additional TPS designation for Venezuelans, and in January – just before Trump took office – extended those protections through October 2026.The Trump administration officials had ordered TPS to expire for those Venezuelans in April. The supreme court’s decision lifted a federal judge’s ruling that had paused the administration’s plans, meaning TPS holders are now at risk of losing their protections and could face deportation.What other forms of legal protection are under attack?More than 500,000 people from what are sometimes called the CHNV countries – Cuba, Haiti, Nicaragua and Venezuela – live in the US under the legal tool known as humanitarian parole, which allows people to enter the US temporarily, on the basis that they have an urgent humanitarian need like a medical emergency. This category, however, is also under threat by the Trump administration.In late March, the Trump administration announced plans to terminate humanitarian parole for approximately 530,000 Venezuelans, Nicaraguans, Cubans and Haitians. In April, a federal judge issued a temporary order barring the elimination of the humanitarian parole program.But last week, the administration took the issue to the supreme court, asking it to allow it to end parole for immigrants from those four countries. The emergency appeal said a lower-court order had wrongly encroached on the authority of the Department of Homeland Security.US administrations – both Republican and Democratic – have used parole for decades for people unable to use regular immigration channels, whether because of time pressure or bad relations between their country and the US.The case now returns to the lower courts. For the California-based federal court, the next hearing is on 29 May. For the Massachusetts case, no hearings are scheduled and attorneys are working on a briefing for the motion to dismiss filed by the government, according to WGBH, a member station of National Public Radio in Massachusetts. The appeals court hearing will be the week of 11 July. More

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      California school district must halt ban on critical race theory, court rules

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      A small southern California school district must immediately pause its ban on critical race theory (CRT), a California appeals court ruled on Thursday morning .The 4th district court of appeals ruling put a halt to the Temecula Valley unified school district ban until its litigation is settled in the California legal system. The decision is the latest in a long-running legal battle over the CRT ban, which was first adopted as a resolution by the Temecula Valley Board of Education in December 2022 as they attempted to purge elementary school textbooks that reference gay rights icon Harvey Milk.The recent decision, authored by Judge Kathleen O’Leary, and concurred by the panel’s other two judges, said that the vague nature and lack of legal or academic terminology in the resolution jeopardized its constitutionality.“The Resolution defined CRT as ‘a divisive ideology that assigns moral fault to individuals solely on the basis of an individual’s race’ and, therefore, is itself a racist ideology,” O’Leary’s ruling said. “The Resolution operates as if this definition is universally accepted, but the text does not indicate where this definition is derived, or whether it is shared with anyone else besides the Board.”The ruling pointed to the resolution’s lack of examples of CRT, and lack of guidance for teachers looking to modify their curriculum.O’Leary’s other primary concern revolved around “confusion and fear” from educators due to the policy, and negative impacts on education provided. One fourth grade teacher submitted a letter of evidence stating that under the doctrine, “she did not know what a permissible response was when her students asked her how and why slavery happened.”“Teachers are left to self-censor and potentially overcorrect, depriving the students of a fully informed education and further exacerbating the teachers’ discomfort in the classroom,” O’Leary wrote. “Rather than lead the classroom and moderate healthy discussion, the teachers are forced to leave children’s questions unanswered.”The conflict over CRT in education has been divisive in Temecula, a historically conservative southern California city of just more than 100,000 people. The battle has followed familiar lines, with three conservative school board members elected in 2022 after running in opposition to mask and vaccine mandates, as well as “sexualized” material in school curriculums. The school board president also famously labeled Milk as a “pedophile” and originally rejected a state-issued social studies textbook including the assassinated gay rights activist. Gavin Newsom, the California governor, threatened a $1.5m fine in response.While the school district may have run into opposition in their community and at the appeals court, headwinds at the federal level are in their favor. In late January, Donald Trump signed executive orders to promote school choice, or the use of public dollars for private education, and to remove funding from schools accused of “radical indoctrination”. Trump also revived a “1776 commission” to “promote patriotic education”. More

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      Trump rolls out Golden Dome missile defense project and appoints leader

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      Donald Trump announced on Tuesday that his administration will move forward with developing a multibillion-dollar missile defense system, called “Golden Dome,” that he envisions will protect the United States from possible foreign strikes using ground and space-based weapons.Flanked by the US defense secretary, Pete Hegseth, in the Oval Office, Trump also said that he wanted the project to be operational before he left office. He added that Republicans had agreed to allocate $25bn in initial funding and Canada had expressed an interest in taking part.“Once fully constructed, the golden dome will be capable of intercepting missiles even if they are launched from other sides of the world, and even if they are launched from space,” Trump said. “Forever ending the missile threat to the American homeland.”What exactly Golden Dome will look like remains unclear. Trump has not yet decided which of three options proposed by the defense department that he wants to pursue. Pentagon officials recently drafted three proposals – small to medium to large – for Trump to consider.The proposals all broadly combine ground-based missile interceptors currently used by the US military with more ambitious and hi-tech systems to build a space-based defense program.But the option that Trump chooses will determine its timeline and cost. The $25bn coming from Republicans’ budget bill is only set to cover initial development costs. The final price tag could exceed $540bn over the next two decades, according to the congressional budget office.Trump said on Tuesday evening that he had settled on architecture for the project and suggested the total cost of putting it into service would reach $175bn. He provided no further details.US space force Gen Michael Guetlein will oversee implementation of the project, Trump said.View image in fullscreenThe selection of Guetlein, the vice-chief of space operations at the space force, to oversee the project means the elevation of a four-star general widely seen at the Pentagon to be competent and deeply experienced in missile defense systems and procurement.The project is expected to end up largely as a partnership with major defense contractors, including Elon Musk’s SpaceX, given it has the capacity to manufacture rockets to launch military payloads into orbit and satellites that can deliver next generation surveillance and targeting tools.skip past newsletter promotionafter newsletter promotionIt will also rely on companies that manufacture ordnance currently used by the US military. The project’s baseline capabilities are set to depend on existing systems including the Thaad and Aegis Ashore systems made by Lockheed Martin and Patriot surface-to-air missiles made by Raytheon.“Golden Dome” came into existence as Trump believes that the US should have a missile defense program to track and kill missiles headed towards domestic US targets, possibly sent by China, Russia, North Korea or other strategic foreign adversaries, similar to Israel’s “Iron Dome” program.Shortly after he took office again in January, Trump signed an executive order directing the Pentagon to develop proposals for a “next-generation missile defense shield” in order to upgrade the US’s missile defense capabilities, which he noted had not materially changed in 40 years.The order came as the defense department has become more concerned about the threat of long-range strikes from strategic adversaries. Last week, the Defense Intelligence Agency released an assessment that said China has about 400 intercontinental ballistic missiles, Russia has 350, and North Korea has a handful.Initially, the White House had named the options for a space-based missile defense system “Moonshot Plus” and “Moonshot Plus Plus”. They were later renamed by Hegseth to be called silver, gold and platinum-dome options based on the three tiers, two former Pentagon officials said. More

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      Trump officials deported Vietnamese and Burmese migrants to South Sudan, say lawyers

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      Immigrant rights advocates have accused the Trump administration of deporting about a dozen migrants from countries including Myanmar and Vietnam to South Sudan in violation of a court order, and asked a judge to order their return.The advocates made the request in a motion directed to a federal judge in Boston who had barred the Trump administration from swiftly deporting migrants to countries other than their own without first hearing any concerns they had that they might be tortured or persecuted if sent there.Lawyers for a group of migrants pursuing the class action lawsuit before US district judge Brian Murphy said they learned that nearly a dozen migrants held at a detention facility in Texas were flown to South Sudan on Tuesday morning.Those migrants included an individual from Myanmar whose lawyer received an email on Monday from an official with the US Immigration and Customs Enforcement informing the attorney of the intent to deport his client to South Sudan.The migrant’s lawyers said they learned their client had been flown to South Sudan on Tuesday morning.The spouse of a Vietnamese man who was held at the same detention center in Texas emailed his lawyer, meanwhile, saying he and 10 other individuals were deported as well, according to the motion.The Department of Homeland Security did not immediately respond to a request for comment.skip past newsletter promotionafter newsletter promotionSouth Sudan, the world’s youngest country, gained independence from Sudan in 2011, and has since struggled with armed conflict and poverty. Between 2013 and 2018, fighting between factions loyal to the current president, Salva Kiir Mayardit, and his vice-president, Riek Machar, killed nearly 400,000 people. More