"Ratings firm Egan-Jones cut its credit rating on 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."
"In its downgrade, the firm said that issuing more currency and depressing interest rates through purchasing mortgage-backed securities does little to raise the U.S.'s real gross domestic product, but reduces the value of the dollar."
"In turn, this increases the cost of commodities, the firm said."
"In April, Egan-Jones cuts the U.S. credit rating to "AA" from "AA+" with a negative watch, citing a lack of progress in cutting the mounting federal debt."
Not that this is the most scientific reason to support QE but I can't help but notice that many of those who oppose it seem to have their own agenda that is hardly one of concern about the the economy.
We see it opposed by Romney, the House GOP, and the useless rating industries-when they could do something for us like alert us to subprime they didn't do their job until the cow was out of the barn. Now they are worried about illusionary visions of phantom bond vigilantes.
. EJ's agenda is to not do any monetary easing and deep spending cuts-ie, they're Republicans. So those who desire the economy to tank-at least until they can impose Mitt Romney-claim to be concerned about the economy when their actions show the opposite is the case.
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