From Big Government (reformatted here):
A small credit ratings agency downgraded the United States’ credit rating for a second time, arguing the country was no closer to solving its runaway debt problem. In a move that could foreshadow decisions from larger agencies, Egan-Jones downgraded the US to AA from AA+.
The company on Thursday cited “the lack of any tangible progress on addressing the problems and the continued rise in debt to GDP.”
“For the first time since WWII, US debt exceeds 100 percent,” analysts said, predicting that would rise to 106 percent by the end of the year, calling that an “inflection point.” Egan-Jones — which is much smaller than its rivals — scrapped the United States’ top-level AAA rating in July, one month before Standard & Poor’s. Part of the reason cited then and now was the continued political gridlock in Washington. “We’d like to see some progress towards reducing the fiscal deficit in the next six to twelve months,” said managing director Sean Egan.
Gridlock – in this case, the Founder knew EXACTLY what they were doing by making it hard to get things done if one player decides that a partial to full stop is warranted – can you imagine if the Dems still controlled the House? You can be assured that spending would have continued to rise (though at $1 Trillion plus / yearly deficits, it is staggering hard to believe it could get much worse, but you know Obama: “YES, we CAN! – and in his mind, YES we SHOULD!) Progress from the Progressives in the Senate, like Harry Reid, not allowing a formal budget to be worked on or passed in 1,071 days?
Of course not – it would show how badly things are financially and how non-existent their plan is to pay off the debt. Which, I have to believe, is either with or at the direction of Obama.
Determined Weakness. After all, as the downgrades continue and if the Fed Reserve quits buying the debt, borrowing costs will soar. How strong would a bankrupt US be? Certainly, no longer the lone Superpower….and maybe not a Superpower at all.