Egan-Jones Ratings Co. said Friday it downgraded its U.S.
sovereign rating to AA- from AA on concerns that the Fed's new round of
quantitative easing, or QE3, will hurt the U.S. economy.
The ratings agency said the Fed's plan of buying $40
billion in mortgage-backed securities a month and keeping interest rates near
zero does little to raise GDP, reduces the value of the dollar, and raises the
price of commodities.
"From 2006 to present, the U.S.'s debt to GDP rose
from 66% to 104% and will probably rise to 110% a year from today under current
circumstances; the annual budget deficit is 8%," Egan-Jones said in a
note.
"In comparison, Spain has a debt to GDP of 68.5% and
an annual budget deficit of 8.5%."
(*PURSED LIPS*)
WAKE UP, PEOPLE...!!! WAKE UP...!!!
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