Friday, September 14, 2012

Downgraded Again
The US credit rating has once again been downgraded in the face of QE3.
Commit to printing press up a bunch of money (yeah, I know it's really more a matter of magick'ing up a bunch of ones and zeroes to make a loan), and one would rationally expect that your creditworthiness would decline.
Frankly I'm shocked that our credit rating is as good as it still is.  Probably that's just because somebody has to be given a good credit rating, and we're the best of skid row.


Anonymous said...

A lot of armchair economists think this QE stuff will lead to inflation. What they fail to realize is that most new money creation happens in the private sector, not in the Fed. And the private sector isn't borrowing. So no inflation till it does.

Japan did this shit for like 20 years people.

RS said...

So anon, what will happen?

RS said...

"armchair economists think this QE stuff... inflation." Just quotin' anon so he can spot my late reply in sidebar