Egan-Jones cuts U.S. rating (based) on debt burden (AA -- now only 3rd highest rating)

Reuters ^ | Apr 6 | Richard Leong

[xzins]

NEW YORK, April 6 (Reuters) - Egan-Jones Ratings downgraded the credit level of the United States as Washington has struggled to reduce the federal debt burden, which is projected to surpass the size of the country's economy.

The independent rating firm, which issued the downgrade late Thursday, said its senior debt rating on the United States is now AA, its third highest rating, down one notch from AA-plus.

It also maintained a negative watch on the world's biggest economy as the federal debt load could rise to $16.7 trillion at the end of 2012. U.S. gross domestic product, in the meantime, could grow to $15.7 trillion, assuming it would grow at a rate of 2.5 percent, the firm said.

The firm downgraded the United States for second time in less than nine months "because of the lack of any tangible progress on addressing the problems and the continued rise in debt to GDP," said Sean Egan, co-founder of firm, in an e-mail statement.

Egan-Jones's downgrade did not elicit major market responses. U.S. government debt prices jumped on Friday after news of much weaker-than-expected job growth in March renewed bets the U.S. central bank would embark on more bond purchases to foster economic growth.

Back in mid-July, Egan-Jones stripped the United States' of its top AAA-rating amid the debt ceiling fight in Washington that stoked fears of a federal default.

[TomasUSMC]

6 OR 7 suitcase nukes going off around the world, would change it all - quick. Martial Law Worldwide.

[TheWriterTX]

There are at least 40 missing that we know of from Russa. Wouldn't surprise me. Don't see Marshall Law being successful; more like Civil War. It will be the perceived "haves" versus the "entitlement" class.

But honestly, people are scrambling to preserve capital in a era when wealth contraction is inevitable. We have not hit bottom, and folks who think we have are fooling themselves.