Egan-Jones Ratings Company has downgraded USA sovereign debt from AA+ to AA, with a negative outlook. That leaves Fitch Ratings and Moody's Investor Service with the deluded conclusion that the United States of America should be rated AAA. Yet even Fitch and Moody's have hedged their malfunctioning debt-rating models with a negative outlook.
Egan-Jones noted concern that "the increasing debt load coupled with the fact that there has been no tangible progress in addressing the country’s growing debt to GDP". Sean Egan continues, "Unfortunately, the debt is growing fairly rapidly while the GDP is not". Wasn't the bi-partisan Super Committee supposed to clean up all this messy budget balancing and skyrocketing national debt? The U.S. Debt Clock is now at $15.63 trillion and just whirring away, while the USA 2011 GDP was estimated by the BEA at $15.09 trillion. Yep, the USA is at the threshold of a fiscal world where debt is greater than GDP with no balanced budget in sight.
The United States federal budget will never be balanced, increasing taxes and cutting spending are not on the bi-partisan negotiating table. You can't get re-elected taking away constituents' spending money or cutting government goodies. Nothing has changed since August 2011 and the political debt-ceiling debacle. Monolithic, self-preserving Washington and powerful, self-absorbed special interests have created a circular fiscal firing squad. American citizens, Main Street, will be the casualties and are as much to blame as the corrupt politicians and corporations. On Easter, there should be national prayer that the global credit card America lives on is not revoked. A credit limit increase would be nice too.
Stay tuned for more notes from underground. The decline of the American Empire continues as the Fed printing presses run 24/7/365...
USA Sovereign Credit Ratings at a Glance
Fitch Ratings: AAA, Outlook Negative
Moody's Investor Service: AAA, Outlook Negative
Standard & Poor's: AA+, Outlook Negative
Egan-Jones Ratings Company: AA, Outlook Negative
Dagong Global Credit: A, Outlook Negative
Weiss Ratings: C-, equivalent to BBB- or 1 level above junk, Outlook Not Provided
Egan-Jones Ratings President on Downgrading U.S. Credit Egan-Jones Ratings President Sean Egan on downgrading U.S. credit due to the government’s mounting debt.
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