Egan Jones Rating Company has downgraded the USA’s rating down to AA with a negative forecast. The major reason for that is the fact that the US public debt has exceeded 10% of the country’s GDP. During the period of 2008-2010 the US debt increased by 23.6% while its GDP gained only 1.6% over the same period of time. Egan Jones experts expect the debt will reach 106^ of the US GDP in late 2012.
It should be noted that in July 2011 Egan Jones downgraded the country’s rating a month before S&P did the same, which caused a collapse in the US stock market in August 2011.
The private rating company - Egan Jones – deserves attention it was the only to downgrade the rating of the infamous MF Global long before its bankruptcy in 2011. Egan Jones was founded in 1995. It is sponsored by institutionary investors and is independent from major financial institutions.
According to , the USD index has formed wave «А/В» 78,80-80,38 of wave level Daily. The uptrend will resume if the price breaks above the MF pivot 80,32 and forms a FZR above it. A mid-term trend reversal will take place if the price breaks and consolidates below 78,95.
