The dreaded downgrade.Biden's health in the spotlight.The big and beautiful Tax bill making its way through the sausage factoryPLUS we are now on Spotify and Amazon Music/Podcasts!Click HERE for Show Notes and LinksDHUnplugged is now streaming live - with listener chat. Click on link on the right sidebar.Love the Show? Then how about a Donation?Follow John C. Dvorak on TwitterFollow Andrew Horowitz on Twitter Warm-Up- The dreaded downgrade- Biden's health in the spotlight- Tax bill making its way through the sausage factory- China continues to stimulateMarkets- Yields - moving up after worrying signs for US debt levels- Stocks posting big gains for May- Bitcoin surges past $100k- Our debt load is untenable - great chart to considerThe Big Beautiful Bill- The bill eliminates taxes on tips and overtime.- The bill achieves "no tax on social security" by increasing deductions for seniors on the program.- The bill eliminates several green energy spending programs and ends the EV tax credit early.- The bill makes auto loan interest tax deductible.- The bill raises the debt ceiling by $4 trillion.- The bill raises the State and Local Tax Deduction to $30,000 for people making $400K or less.- The bill makes changes to the IRS free tax filing program, pending review by a task force.- The bill includes tax on college endowments and private foundations.- The bill includes reforms for how pharmacy benefit managers do business with the government.- The bill creates a new savings account for children, and $1000 of funding will be provided.- The bill raises the child tax credit to $2500 from $2000. USD DEBTMoody's- U.S. Treasury yields spiked on Monday after Moody's downgraded the U.S.' credit rating, citing fiscal concerns.- That brings it down one notch from Aaa — the highest score — to Aa1- The first time since the  initial rating back in 1919 that Moody's made a change- Interesting timing - in the middle of a big spending package process ---- maybe they are sending a message-"This is a major symbolic move as Moody's were the last of the major rating agencies to have the US at the top rating," Deutsche Bank analysts said in a note.Market reaction- Futures fell in late trade after the close of the markets- when it was announced- Bonds - long end moved.--- 30 yr treasuries up over 5%---- 30 yer mortgage rates over 7%- Markets - yawned and turned on the open after a 1.5% love lower on the futuresBessent reaction-Treasury Secretary Scott Bessent said in an interview on NBC News' "Meet the Press" that Moody's Ratings were a "lagging indicator" after the group downgraded the U.S.' credit rating by a notch from the highest level.-"I think that Moody's is a lagging indicator," Bessent said Sunday. "I think that's what everyone thinks of credit agencies."- He asserted that the downgrade was related to the Biden administration's spending policies- Is that right?China - Stimulating- China cut its key lending rates by 10 basis points on Tuesday, as Beijing ramps up efforts to boost its economy at a time when trade tensions threaten to derail growth.- The People's Bank of China trimmed the 1-year loan prime rate to 3.0% from 3.1%, and the 5-year LPR to 3.5% from 3.6%.US Steel still in play- Nippon Steel plans to invest $14 billion in U.S. Steel's operations including up to $4 billion in a new steel mill if the Trump administration green lights its bid for the iconic U.S. company, according to a document and three people familiar with the matter.- Under details of the plan included in the document, the company will plow $11 billion into U.S. Steel's infrastructure through 2028. That includes $1 billion in a green field site, which is expected to grow by $3 billion over the following years and has not been previously reported.- There is  a deadline of May 21st for a national security review - then T...