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.
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, 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.
Egan-Jones is not a blue-chipper like S&P or Moody’s, but they are an up and comer in the credit rating world, and they’ve achieved up and comer status by telling it like it is, unlike the staid and cautious S&P or Moody’s, which just recently put the US on negative watch. E-J appears to be just beating the big boys to the punch.
If Obama’s thuggish minions will raid Gibson Guitar and pursue some Muslim-bashing nut by hectoring YouTube, you know they’ll have no problem paying Sean Egan and company a little visit. Feds to raid Egan-Jones’s offices in 3,2,1…