After the Federal Reserve announced it was printing and injecting $40 billion dollars into the U.S. economy (a move seen by many as a way to temporarily inflate the numbers to favor the reelection of President Obama), 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 GDP 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.
The credit rating of our country was always the absolute best and had never been downgraded. Now, with one term of Barack Obama not even completed, we have been downgraded twice.
We need new leadership and it starts with a new President.