Gaius @ Blue Crab Boulevard:
And it is directly the fault of the Fed’s QE3 announcement:
While the Fed is seeking to support economic growth through its quantitative easing, Hassiepen argued that the central bank’s “massive monetization” is instead causing “sluggish to stagnant economic growth.”
In fact, he expects growth to become stagnant within six months as a result of the Fed’s policy.
The reason the country does not have a weaker rating, he said, is that it remains “the only viable reserve currency in the world.”
And you can just here the words, “for now” at the end of that sentence, can’t you? All that this new Fed action is going to produce is massive stagflation.
Have you shopped for food lately? Bought gas recently?
Gotten a raise lately? Me, neither. But I’m paying a lot more for everything on the same paycheck.
Many of us conservatives here could have guessed this would happen. Who will the liberal/progressives blame for this credit downgrade?
I expected it, but I figured the Fed would wait until closer to November so that the credit downgrade would not happen until after the election.