Tuesday, April 10, 2012

USA Downgraded From AA+ To AA: Outlook Negative


Yes, indeed.
Egan Jones, the only rating agency that matters, downgraded the US from AA+ to AA, with a negative outlook.
They said:
Inflection point - when debt to GDP exceeds 100%, a country's financial flexibility becomes increasingly strained. For the first time since WWII, US debt exceeds 100%. From 2008 to 2010, debt rose a total of 23.6% while GDP rose a total of 1.6%. Unfortunately, with an annual federal budget deficit in the area of $1.4T, debt is likely to reach $16.7T as of the end of 2012 while assuming GDP grows 2.5%, total GDP is likely to reach $15.7T. Therefore, as of the end of 2012, debt to GDP is likely to be in the area of 106%. Assuming the federal deficit for 2013 remains at $1.4T and GDP growth is 2.5%, the total debt will rise to $18.1T and GDP will rise to $16.1T, resulting in debt to GDP of 112%. In comparison, France's and Italy's debt to GDP are 81% and 117% respectively. Regarding efforts to address budget problems, the Super Committee was seeking spending cuts of $1.5T over 10 years or merely $150B per year, and was a failure. Obviously, the current course is not enhancing credit quality.

Without some structural changes soon, restoring credit quality will become increasingly difficult. Yields on 10-year treasury notes have fallen to their lowest since early Feb 2010 with US Federal Reserve's aggressive purchases of US Treasuries. A concern is the rise in interest rates placing higher pressure on the US's credit quality. Excess growth of money supply (i.e., debt monetization) harms creditors and ultimately, the economy. Weak debt reduction efforts force a neg. watch.
But that's not all....
Apparently, the Obama administration has silenced the media in announcing this terrible piece of news.
The White House news briefing referred to in this report occurred this past Thursday (5 April) when Obama regime officials were queried about the latest shock downgrade of the United States credit rating stating that to the American people this critical event should be kept in the category of a “non-story” so as not to confuse and/or shock them.

Most surprisingly, this report continues, the mainstream US news media, including their most important television networks and major newspapers, dutifully followed the directives of the Obama regime and failed to uniformly inform the American people of this momentous event.

Credit rating agency Egan Jones (EJR) 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 the US credit level from AA+ to AA. The firm reduced the US from AAA to AA+ in July 2011, just before Standard & Poor’s did the same.

Furthermore this report states:
Most sadly in all of these events, the once great United States, whose press freedoms were once legendary, has been placed at No. 47 on the world’s press freedom index by the internationally respected Reporters Without Borders (RSF) organization in a stunning move reflecting how deprived of real truth the American people truly are.

The great American Founding Father Thomas Jefferson once warned his fellow citizens, “Our liberty cannot be guarded but by the freedom of the press, nor that be limited without danger of losing it.”

With that warning going unheeded, however, the quote of the great American author Mark Twain seems to be the more appropriate one to use for this American generation, “There are laws to protect the freedom of the press’s speech, but none that are worth anything to protect the people from the press.”

Houston we have a problem.

1 comment:

Anonymous said...

Hi again, Judy, my last attempt to comment seemed to work, so I'll use the anonymous option.

Concerning MSM, I get the feeling there are 2 goals, Lies and Ads, to the poor common person who for whatever reason, age, education, or income has no computer internet access.

Just one example, it was sad to view on TV last evening with my elderly home-bound mother NBC (GE Corp) engage in frightening propagandizing with nuclear war and climate change with bold graphic clips in under 90 seconds.:(

I truly think she deserves better, her mind can take the "non-story" and it would "confuse and/or shock" her in a good way to get the true story instead of Brian Williams' slick authoritarian voice telling her lies and none too sweet either!

I make an effort to explain, but it is so difficult to compete with that handsome man on the flat screen TV! (:
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