Egan-Jones Ratings Company, the leading indicator for what sovereign debt actually should be rated, has downgraded UK, Italy, and Spain recently:
UK: AA- from AA (negative outlook)
Italy: B+ from BB (negative outlook)
Spain: B from BB- (negative outlook)
The primary issue here and elsewhere is debt approaching then exceeding annual GDP. A secondary issue with most debt troubled countries is printing currency at a faster rate than annual GDP growth. Of course, those countries trapped in the EU gave up their sovereign printing presses and cannot buy more time like the UK and USA do.
The so-called 3 major credit rating agencies (Fitch, Moody’s, and S&P) have rated these 3 countries:
UK: AAA, Aaa, AAA (Fitch & Moody’s negative outlooks, S&P stable outlook)
Italy: A-, A3, BBB+ (negative outlooks)
Spain: A, A3, BBB+ (negative outlooks)
USA Sovereign Debt Ratings
For those of you playing along at home, below are the latest USA credit ratings. The compromised and inept Fitch and Moody’s, under fear of SEC punishment for mortgage-backed securities and collateralized debt obligations fraud from the 2008 financial system crisis, expect us to believe America is AAA rated. The equally compromised and inept S&P did downgrade the USA last year to AA+, but did so at their own regulatory and political risk.
The policy of the President and Congress of the United States is to punish any credit rating agency that downgrades America. Such a downgrade brings to light the fact that both the executive and legislative branches are corrupt, not looking out for the best interests of American citizens and future generations, and have sold out to both domestic and foreign special interests. The political vehicle used is the dull normal SEC, the credit rating agency regulator, to mete out punishment.
Egan-Jones was punished by the SEC in May on some administrative technicalities. This was after the April downgrade of the USA to AA. It is a tribute to the integrity of Egan-Jones that the SEC goes after them, which denies the allegations. Of course, the real criminals of the 2008 financial system meltdown, the Wall Street Banksters, have walked away unharmed with socialized losses and private profits while their accomplices Fitch, Moody’s, and S&P continue relatively unscathed.
Let’s just skip to the end of the book and ignore all the American and British propaganda! The USA and UK will next be rated A with negative outlooks on their downward spiral to insolvency. Fitch, Moody’s, and S&P will overrate the USA until the bitter end. Greece, Spain, Italy, Ireland, Portugal, The Netherlands, et al. will collapse beforehand. Ultimately this will drag down Germany and France. Finally the UK then the USA will melt down. Now you know the rest of the story…
USA Sovereign Credit Ratings at a Glance
Fitch Ratings: AAA, Outlook Negative
Moody’s Investor Service: AAA, Outlook Negative
Standard & Poor’s: AA+, Outlook Negative
Egan-Jones Ratings Company: AA, Outlook Negative
Dagong Global Credit: A, Outlook Negative
Weiss Ratings: C-, equivalent to BBB- or 1 level above junk, Outlook Not Provided
USA Sovereign Debt Exceeds GDP: The American Dream Gone Wild
USA Sovereign Debt Now Exceeds GDP: Greetings From Big Brother
The Elephant in the Room: Egan-Jones Downgrades USA Debt to AA
