Saturday, September 15, 2012

Credit Rating Cut Again, The Fed Just Prints More Money

Once again a credit bureau has cut the US credit rating.  We've gone from an AA to an AA-.  When Barack Hussein Obama took office in 2009 our credit rating was AAA, now it is AA-, and it could go to a B+ by January 20th, 2013.
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.

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, 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.

The Fed is just printing money, $40 Billion each month.  It won't be long before the US dollar will be worthless and that hyper-inflation will arise.  It happened in the 1920's in Germany, recently in Zimbabwe and soon in the United States.

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