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.
Remember that once a number of the credit agencies downgrade our credit rating, we will have to pay more interest to service Obama’s debt, irrespective of any monetary shenanigans on the part of the Fed.
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