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B+: Three Cheers for This F'n' Guy's Masterful Stewardship Over The Economy »
September 14, 2012
Credit-Rating Agency Downgrades US Rating To "Don't Permit Them To Rent A Car"
No, but down from AA to AA- on fears QE3 will harm the economy.
"From 2006 to present, the US's debt to GDP rose from 66% to 104% and will probably rise to 110% a year from today under current circumstances; the annual budget deficit is 8%," Egan-Jones said in a note. "In comparison, Spain has a debt to GDP of 68.5% and an annual budget deficit of 8.5%."
They also note the move does nothing to boost GDP (and thus our financial situation), and only serves to weaken the dollar and drive up commodity prices.