Another Credit Agency Downgrades US

Another Credit Agency Downgrades US
Breitbart

Egan Jones says AA is the best they can do for the U.S. credit rating !!

They are concerned about the sustainability of public debt.

What's Barack Hussein Obama II gonna say now ?

What excuse for failure will Ben Shalom Bernanke have ?

What will Timothy Franz Geithner say ?

Credit rating agency Egan Jones downgraded the United States Thursday on concern over the sustainability of public debt. Egan Jones is one of the most important ratings firms in the world; they lowered our credit level from AA+ to AA. The firm reduced America from AAA to AA+ in July 2011, just before Standard & Poor's did the same.

Egan Jones warned. "Without some structural changes soon, restoring credit quality will become increasingly difficult . . . without some structural changes soon, restoring credit quality will become increasingly difficult." They added that there was a 1.2% probability of U.S default in the next 12 months. The company cited the fact that the US’s total debt, which now equals its total GDP, is rising and soon will eclipse the national GDP; the company sees the debt rising to 112% of the GDP by 2014.

The debt grew 23.6% the first two years of Obama’s presidency. When the debt is more than 100% of the GDP, treasury notes fall, which is a problem because they are used for transactions between financial institutions. This, in turn, could raise rates on mortgages and other loans, which would discourage growth in the economy, as well as state and local governments feeling the pinch, which could eliminate more services.

Paul Von Ryan's Express might not look to bad after all !!

Paul Ryan has offered a debt reduction plan which would reduce the current six federal income tax rates to just 2 -- 10% and 25%. His plan would also reduce the federal corporate income tax rate from 35% to 25%, the same rate as the international average. Because of the additional revenue accrued from economic growth as a result of the tax reductions, federal revenues could double over the next 10 years; the added revenue would be more than the entire GDP of almost every other country in the world.

Meanwhile, President Obama continues to vilify Ryan’s ideas, saying they are, “a Trojan horse, disguised as deficit-reduction plans . . . thinly veiled social Darwinism.” And White House projections show the federal debt’s ratio to gross domestic product growing to a record 124 percent in 2050 under Obama’s plan.

Obama’s malfeaseance or Ryan’s responsibility? If the country is to survive, it’s not hard to choose.

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reply to post by xuenchen


They should be concerned about the sustainability of the public debt.

In fact, i think they should be more concerned than they are

Anybody that balances their own checkbook and is sharper than a butter knife can see that we are not on a course of sustainability - not even close

EDIT: Just a quick edit to say that I think it's a shame more people are not truly interested in what is actually going on in our financial house at the moment. It's sad but it seems like financial threads have a tendency to die out quickly...apparently finance is just not "sexy" enough...but I guess that's part of why we're where we are today

reply to post by xuenchen


Im starting to wonder if there is not a coordinated effort to downgrade countries credit to force a collapse. Countries started to hepo each other out so they need another method to acomplish this.

This coming on the heals of the IMF chief telling the US we need to give them more money...

I think its time we pull in the welcome door matt and turn the lots off and not answer the door till we get our house in order.