America's Credit Rating Cut Again.
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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 more: Fed'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 realgross 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.
Read More: http://www.cnbc.com/id/49037337
Top Opinion
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Brad # 2486547 2012/09/15 13:30:26Obama = Failure.
+4And yet Obama is leading in the polls. It just goes to show that most Americans are believing the Obama propaganda.
NOT Only the first to be Downgraded ..
but MULTIPLE downgrades ..
This .. by any measure at all ..
is a definite FAIL ..
"No State shall make any Thing but gold and silver Coin a Tender in Payment of Debts."
Article 1, Section 10, united States' Constitution
"The problem with socialism is that eventually you run out of other people's money."