Credit Agency, Egan Jones, Downgrades U.S. Credit Rating AGAIN!

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**Credit Downgrade happened Thursday, April 5, 2012***

Why the secrecy Mr. Obama?  Afraid it might make you look bad after you tell America the Economy is improving?  Afraid to tell Americans that a higher INFLATION table is on the  horizon due to our tremendous National Debt?  Hiding this important information when YOU vowed that your Administration would be OPEN and TRANSPARENT?

Did YOU ask the major MSM’s to keep this quiet?

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From Breitbart/Big Government

ANOTHER CREDIT AGENCY DOWNGRADES US

by WILLIAM BIGELOW

April 7, 2012

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

Egan Jones warned. “Without some structural changes soon, restoring credit quality will become increasingly difficult . . . without some structural changes soon, restoring credit quality will become increasingly difficult.” They added that there was a 1.2% probability of U.S  default in the next 12 months.  The company cited the fact that the US’s total debt, which now equals its total GDP, is rising and soon will eclipse the national GDP; the company sees the debt rising to 112% of the GDP by 2014.

The debt grew 23.6% the first two years of Obama’s presidency. When the debt is more than 100% of the GDP, treasury notes fall, which is a problem because they are used for transactions between financial institutions. This, in turn, could raise rates on mortgages and other loans, which would discourage growth in the economy, as well as state and local governments feeling the pinch, which could eliminate more services.

Paul Ryan has offered a debt reduction plan which would reduce the current six federal income tax rates to just 2 — 10% and 25%. His plan would also reduce the federal corporate income tax rate from 35% to 25%, the same rate as the international average. Because of the additional revenue accrued from economic growth as a result of the tax reductions, federal revenues could double over the next 10 years; the added revenue  would be more than the entire GDP of almost every other country in the world.

Meanwhile, President Obama continues to vilify Ryan’s ideas, saying they are, “a Trojan horse, disguised as deficit-reduction plans . . . thinly veiled social Darwinism.” And White House projections show the federal debt’s ratio to gross domestic product growing to a record 124 percent in 2050 under Obama’s plan.

More here……….

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Additional Link and information:

Egan Jones Downgrades USA From AA+ To AA, Outlook Negative

by  - April 5, 2012

A major US Credit rating agency, the first to downgrade the US credit rating before S&P followed suit, again downgrades US debt

Last July before Egan Jones was the first credit rating agency accredited by the federal government to downgrade the United States credit rating.

Wall Street all but ignored the downgrade as Fitch and Stand and Poor’s gave warnings they may follow suit knowing full well Egan Jones was the only agency with even a fiber of moral fabric.

As the crisis unfolded Standard’s and Poor’s followed suit and cut the US credit rating which sent shock waves through the global financial markets.

Egan Jones has again cut the US credit rating – this time from AA+ to AA while putting the United States on a negative outlook for another ratings downgrade in the future.

S&P has already warned they may do the same so the question is will Wall Street ignore Egan Jone’s cut this time around?

Zero Hedge reports:

A few weeks ago when discussing the imminent debt ceiling breach, and the progression of US debt/GDP into the 100%+ ballpark, we reminded readers that in February S&P said it could downgrade the US again in as soon as 6 months if there was no budget plan. Not only is there no budget plan, but the US is about to have its debt ceiling fiasco repeat all over as soon in as September. Which means another downgrade from S&P is imminent, and continuing the theme of deja vu 2011, the late summer is shaping up for a major market sell off. Minutes ago, Egan Jones just reminded us of all of this, after the only rating agency that matters, just downgraded the US from AA+ to AA, with a negative outlook.

From Egan Jones:

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.

Source: Zero Hedge

More here…….

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From Bloomberg:

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

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Reporting about this economic news from CNN,ABC,NBC,MSNBC,CBS,WaPo?

===crickets…….crickets…….crickets==

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**WE are doing the job the failed MSM’s are NOT doing***

#IAmAndrewBreitbart

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