US credit rating downgraded…AGAIN

I don’t think this was the hope and change that Americans were expecting back in 2008. Obama’s solution to this? Print more money!

Via CNBC

Ratings firm Egan-Jones cut its credit rating on the U.S. government to “AA-” from “AA,” citing its opinion that quantitative easing from the Federal Reserve would hurt the U.S. economy and the country’s credit quality.The Fed on Thursday said it would pump $40 billion into the U.S. economy each month until it saw a sustained upturn in the weak jobs market. (Read moreFed’s ‘QE Infinity’ — Four Things That Could Go Wrong)

In its downgrade, the firm said that issuing more currency and depressing interest rates through purchasing mortgage-backed securities does little to raise the U.S.’s real gross domestic product, but reduces the value of the dollar.

In turn, this increases the cost of commodities, which will pressure the profitability of businesses and increase the costs of consumers thereby reducing consumer purchasing power, the firm said.

In April, Egan-Jones cuts the U.S. credit rating to “AA” from “AA+” with a negative watch, citing a lack of progress in cutting the mounting federal debt.

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Posted on September 14, 2012, in Uncategorized and tagged , , , . Bookmark the permalink. 3 Comments.

  1. This seems like a pretty small player but that is how these things happen; slowly and then all at once the agencies all second that emotion. Don’t want to be left out. It is Reality intruding. Really, we should have been downgraded years ago but then, what would anyone hold in their portfolio as reserves? It’s all imploding, folks, cuz it was ALL bubble. Bubble all the way down. But hang tough. We have grown foolish in plenty. We will grow wise in hunger.

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