The USA took another credit rating hit! Did you even hear about it before this?
America saw another downgrade on its credit rating last week. The
White House ordered the press to keep quiet and they meekly obeyed. But
that’s not the worst problem. If the Big Three follow through on the
downgrade, prices of all commodities, including gold, silver, and oil,
could rise sharply.
Credit rating action
Egan-Jones Ratings Company (EJR)
is an independent credit rating company that answers only to investors.
No company or government that issues commercial or sovereign debt has
any influence over its decisions. A source familiar with such matters
(specifically an account executive for a major precious-metals brokerage
firm) pointed out to CNAV that the Big Three credit rating
agencies (Standard and Poor, Moody, and Fitch) all work under such
influence. Therefore, if any country’s sovereign debt deserves a
downgrade, Egan-Jones will downgrade it first. The Big Three will follow
Egan-Jones’ lead when they can no longer deny the reality.
In 2008, Egan-Jones was first to predict the crash of the housing
market. Last year, they were the first to downgrade the American credit
rating from AAA to AA+. Standard and Poor merely followed Egan-Jones’
The Marriner S. Eccles Federal Reserve Board Building. Photo: User Cliff1066/Flickr, CC BY 2.0 Generic License
On Thursday, 5 April, Egan-Jones Ratings downgraded American sovereign debt again. The American credit rating is now AA.
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