Egan-Jones Cuts U.S. Rating One Step to AA Citing Growing Debt

[DefiantSix]

Egan-Jones Cuts U.S. Rating One Step to AA Citing Growing Debt
By John Detrixhe - Apr 5, 2012 3:50 PM MT

Egan-Jones Ratings Co. cut the U.S. credit rating one step to AA, the second downgrade in nine months and two levels below its highest grade, with a negative outlook citing the nation’s increasing debt burden.

U.S. debt has increased to 100 percent of gross domestic product, while debt climbed 23.6 percent from 2008 to 2010, the credit-rating firm said in a statement today. Egan-Jones lowered the U.S. grade to AA+ in a July. Treasuries have gained 4.6 percent since the company first lowered the U.S. rating, according to Bank of America Merrill Lynch index data.

The downgrade was based on “the increasing debt load coupled with the fact that there has been no tangible progress in addressing the country’s growing debt to GDP” ratio, Sean Egan, president of Egan-Jones in Haverford, Pennsylvania, said today in a telephone interview. “Unfortunately, the debt is growing fairly rapidly while the GDP is not.”

Standard & Poor’s cut the U.S. grade by one step to AA+ on Aug. 5 and has a negative outlook on the country’s debt. Moody’s Investors Service and Fitch Ratings assign the nation their top Aaa and AAA ratings respectively and also have negative outlooks.

This is why we can't afford 4 more years of tax and spend progressive politics, regardless of the party doing the taxing and spending.

[thundley4]

If the evil Rethuglicans would agree to raise taxes the debt would not grow as fast. /Obama mode.

[Lacarnut]

If the evil Rethuglicans would agree to raise taxes the debt would not grow as fast. /Obama mode.

Does not make that much difference who is elected. We are asshole to appetite in debt. 16 trillion is just scraping the surface. That amounts to around $50k of debt for every man woman and child. The big bucks are in the unfunded liabilites like Social Security that total 118 Trillion dollars. The payroll tax for S.S was supposed to be placed in a trust fund. There are only IOU's in there as our politicians R & D have stolen and raped us. Everyone of them should be fired that voted to continue spending our retirement funds. The Trust Fund was not meant to be a piggy bank to fund social welfare programs, wars and other foolishness.