Tuesday, July 19, 2011

Egan-Jones Cuts U.S. Rating to AA+ on Spending-Cut Concern

It is the debt, not the failure to raise the debt limit, that has America on the ropes. The first paragraph of the article, below, says it all. Obama, Geithner and the rest of the Democrats are lying to us, as usual.

I called my congressman's office a few minutes ago to find out his stance on all of this. He is voting yes on Cut, Cap,  Balance but if that fails in the senate, he will not vote for the McConnell plan. Excellent! - Reggie

Egan-Jones Ratings Co. cut its rating on the U.S. by one step to AA+ from AAA, citing the high level of debt outstanding relative to other countries and concern that politicians may fail to reduce spending.

“The major factor driving credit quality is the relatively high level of debt and the difficulty in significantly cutting spending,” the firm said July 16 in a report. Egan-Jones placed the U.S. on negative watch on March 1.

Republicans are using talks to increase the $14.3 trillion debt-ceiling to press for cuts in spending. Treasury Secretary Timothy F. Geithner has said the government, which reached its borrowing limit on May 16, will run out of options to prevent a default on Aug. 2. The most likely outcome of the negotiations is that the federal government will fail to reduce its debt to gross domestic product “in any sort of meaningful fashion,” said Sean Egan, president of Egan-Jones in Haverford, Pennsylvania.

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