Politics: U.S. credit rating downgraded.....again.
Published by: Robert Laurie on Friday September 14th, 2012
By ROBERT LAURIE - From AA+ to AA- in the past six months
This afternoon, credit ratings firm Egan-Jones cut the United States credit rating to AA-. In their report, they stated that Fed chairman Ben Bernake's most recent plan to print more cash was to blame. According to Egan-Jones, Bernake's scheme to stimulate the economy by purchasing mortgage backed securities would do nothing to improve the fiscal outlook of the U.S. Instead, it would only depress interest rates while lowering the value of the dollar, which in turn increases the cost of commodities. This will eventually drive up the price of consumer goods.
In layman's terms, Egan Jones just explained Econ 101 to the man who's sole job is protect the value of the U.S. dollar.
This is the second time in six months that the firm has lowered the U.S. rating. The first, from AA+ to AA, occured last April. Back then, the reason given was that Obama had failed to do enough to reduce the debt. Since then, the debt has crossed the $16,000,000,000,000.00 threshold, and shows no sign of slowing.