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 real gross domestic product, but reduces the value of the dollar.
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
TRUE FACTS – Before Dems took Congress on 1/3/2007
- The unemployment rate was 4.4%, and
- Federal debt was $8.7T
- Under Dem control, unemployment went over 10%. The smallest percentage of Americans have jobs since 1981.
- Debt will be over $20T by 2016 based on what Dems spent and borrowed.
- America cannot survive more failed Dem policies and corrupt Dem politicians (like the ones who gave billions to their contributors via the Stimulus Act of 2009).