US Credit Downgraded Again - QE3 Cited as Reason

[Fast Gunn]

The Federal Reserve did what it had to do to restore the US economy with grim resolve.

Granted, it was not a preferred way, but something needed to be done to get our ox out of the ditch and I'm glad Ben had the balls to do it.

My question is who the fuck is Eagen-Jones?

. . . I wonder if this is how some little known agencies try to gain some publicity for themselves.

[CuteOldGuy]

Gawd, you live in a fantasy world, FastGoon. At least you're happy there.

[budman33]

Sounds really bad... However this is just another credit agency downgrading the US to the same level that Standard and Poor did. so they are now equal. bad yes, but it's incredibly misleading and makes you think OH NO Standard and Poor rating has gone down again, and our credit rating has gone down again. it hasn't. it's the equivalent of your Experian credit Score matching your Trans Union credit score. just took them longer to catch up.

The underlying problem remains though. The Executive Branch and the Congress needs to negotiate. And they won't. This is the most obstructionist relationship in history.

"If those negotiations fail to produce such policies, however, Moody's would expect to lower the rating, probably to Aa1," the company said.
That rating -- a notch below AAA -- would be the equivalent of the rating that Standard & Poor's put in place for the U.S. in 2011 when it downgraded the nation's top-level rating following the divisive debate over raising the debt ceiling.

[CuteOldGuy]

Actually, the real power is at the Fed. There is a reason for that.

‎”Give me control of a country’s money supply and I care not who makes its laws.”

Meyer Amschel Rothschild

When Congress abrogated its responsibility for monetary policy, and gave it to the Fed, we lost a lot of freedom. We need to End the Fed, and return monetary policy to the Congress, where it belongs.

Then we have to quit electing numbskulls to Congress. Well, let's get rid of the numbskulls first. The clowns there now won't do anything to the Fed.

[joe bloe]

Originally Posted by CuteOldGuy

Actually, the real power is at the Fed. There is a reason for that.

‎”Give me control of a country’s money supply and I care not who makes its laws.”

Meyer Amschel Rothschild

When Congress abrogated its responsibility for monetary policy, and gave it to the Fed, we lost a lot of freedom. We need to End the Fed, and return monetary policy to the Congress, where it belongs.

Then we have to quit electing numbskulls to Congress. Well, let's get rid of the numbskulls first. The clowns there now won't do anything to the Fed.

We probably need to be figuring out how to rebuild an economy from the ruins. The collapse is coming. I read some place that Germany backed their currency with land instead of gold after the Weimar collapse. The federal government does own trillions of dollars worth of land; maybe that's an option.

[TexTushHog]

Originally Posted by CuteOldGuy

Here's the statement:

[COLOR="DarkRed"]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 . . . .

The downgrade is based on a false premise. Indeed, the most influential paper, by Micharl Woodford, at the recent Fed conference at Jackson Hole death with this very subject.

http://www.kc.frb.org/publicat/sympo...?sm=jh083112-4

Woodgord's paper has been very well received and certainly seems to be well reasoned, from my brief review. I understand that his reputation as a monetary economist is quite good.

But beyond that, the rating is meaningless. Who uses these ratings to price US government bond? Nobody. And our borrowing costs are still at historic lows. If the market sensed credit risk, we would see rising rates on our debt.

[CuteOldGuy]

Interesting you would use the statement "death with this very subject." Must have been a Freudian slip, because that is exactly what is happening to our economy.

[I B Hankering]

Originally Posted by Laz

What is sad is that many people will point at the stock market increases and think this is a success.

Even people who aren't in the market to benefit. The Kool Aid dispensing MSM will hold the market up as an example of good fiscal policy, and the "initiated" will parrot the words and believe -- even as they struggle to buy bread and milk for their children.

[Fast Gunn]

Why are there so many dead words that keep popping up on this board?

Can we stop using Kool-Aid to describe anything you disagree with?

Personally, I am sick of those idiots who spell "Think" as "Thinck" as though they were so cool using some sort of inside joke like the outdated blue water shtick.

. . .Hey, guess what? That joke died about 20 years ago and it wasn't even funny back then!

[I B Hankering]

Originally Posted by Fast Gunn

The Federal Reserve did what it had to do to restore the US economy with grim resolve.

Granted, it was not a preferred way, but something needed to be done to get our ox out of the ditch and I'm glad Ben had the balls to do it.

My question is who the fuck is Eagen-Jones?

. . . I wonder if this is how some little known agencies try to gain some publicity for themselves.

Until the banks quit sitting on their excess reserves and actually "loan" the money the Fed is making available, nothing is going to be restored; instead, things will get worse.

[TexTushHog]

Spell check on cell phones and small screens are a pain in the ass for folks with. Bad eyesight.

[LovingKayla]

Originally Posted by CJ7

if you have gold I wouldnt piss and moan

Gold? What gold? I have no idea what you're talking about.