September 16, 2012
On Friday, the independent and nationally recognized statistical rating organization lowered “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,” CNBC reported.
In April, Egan-Jones ratcheted down the U.S. credit rating to “AA” from “AA+” with a negative watch. The negative watch meant there was a 50% chance of the government’s rating being lowered within three months.
Egan-Jones said cranking up the printing presses and artificially lowering interest rates by purchasing mortgage-backed securities will not raise the real GDP but will instead reduce the value of the dollar.
The Fed has worked diligently toward that goal – significantly reducing the value of the dollar. In February, the Federal Reserve Open Market Committee made the policy official by announcing it plans to devalue the dollar by 33% over the next 20 years.
In addition, the Fed’s effort to push interest rates to zero “accentuates the negative consequences of this steady erosion in the dollar’s buying power by imposing a negative return on short-term bonds and bank deposits. In effect, the Fed has announced a course of action that will steal — there is no better word for it — nearly 10 percent of the value of American’s hard earned savings over the next 4 years,” Forbes reported.
In order to sell the plan to force down interest rates and devlaue the dollar to the victims, the privately owned Federal Reserve cartel stated last week that it is “concerned that, without further policy accommodation, economic growth might not be strong enough to generate sustained improvement in labor market conditions.”