Britain loses its AAA Credit Rating
 

Downgraded by Moody's to AA1.

http://www.bbc.co.uk/news/business-21554311

Re: Britain loses it's AAA Credit Rating
 

To be honest i was expecting this and i am shocked it took them so long to do it.

Re: Britain loses it's AAA Credit Rating
 

Same here. This mess is far from over IMHO, we've got years of trouble ahead, it's just a case of how many.

Re: Britain loses it's AAA Credit Rating
 

Not suprised its been on the horizon to be honest said that osbourne was too paraniod to keep it. Rating agents bunch of baffoons anyway you would be fool to listen to them. Gave AAA rating to the sub prime market in usa before they crashed.:rolleyes: Think they need seriously regulated they got alot answer for the way they conduct themselves during crisis.

I am wondering surely time the minimum wage has to be raised even if we do it as short term measure. USA planning this at present.

http://truth-out.org/news/item/14672...oesnt-think-so

Surely if its done sensibly protect the small businesses who likely wont be able to raise it. We either can give economy that important nudge a little stimulus or real in the tax credit little.

Re: Britain loses it's AAA Credit Rating
 

Yep. Perhaps this will give the government a kick up the backside to push to get us back on track.

Re: Britain loses it's AAA Credit Rating
 

Probably at least 5 years and maybe a few years on top of that one fears.

Re: Britain loses it's AAA Credit Rating
 

Indeed:(

Re: Britain loses it's AAA Credit Rating
 

I think we have one ways to create a turnaround. Apart from raising minimum wage we need to create investment bank. Set the interest rate say 7%. Either use RBS or use BOE though would watch them like hawk give them mandate to put the money to Good investment strategies. Lend money in right areas to improve the country position not waist it on bad investments.

So not put in housing, stocks, hedge funds but into proper businesses into manufacturing strategies and research & development possibly too. Even possible maybe into apprenticeships too in areas where we got skills shortage create pool skilled labour. Investments for entrepreneurs to set up small businesses. Aim to get country foothold in manufacturing and reduce its over reliance one sector. One area we need to grasp with big hands the possibilities that Graphine can bring to worlds marketplace. Such as its ability of being superconductor. We would be fool to let the oportunity missed.

Osbourne got lots options to turn it around ways to be creative get us moving forward. Which will setup the country be world leader. He just not creative or imaginative.

Re: Britain loses it's AAA Credit Rating
 

What makes me laugh is that Ed Balls is having a go at the chancellor over this,.

He and his idiotic mates in Labour have no right lecturing anyone about the financial state of this country. Labour has a short memory and should read the history books about who put this country in the state in the first place.

Re: Britain loses it's AAA Credit Rating
 

Seriously ?????
He's got some balls that bloke

Re: Britain loses it's AAA Credit Rating
 

The banks, moody's, standard and Poor yes labour, conservative and coalition guilty of all sorts different failures. From bailing the banks out not letting them drown in the brown stuff they created.

Yes there is guilty things from the last government why they heck did they not throttle banks with regulation protect us.

De-regulating our banks been suicedal move.

Why was the money not used in infrastructure, R&D, boost manufacturing industries. Hell coalition and conservatives before equally guilty in allowing our money being put into projects which sap the country. Protected wages and stopped the leaching money to the tiny few. Not one government kept control standard living allowed housing market run out of control. With sense of hope market forces would kept it under control. We allowed infrastructure to be owned by foreign companies then can bleed us dry.

Too much money ended in causing false housing bubble, In the stock investment markets and hedge funds to buy out companies. All in own right bad but over last 30 years or so combined made things Very very Toxic to UKPLC health. Our housing bubble is one of most toxic things which only time hit us hard.

Not one group to blame they ALL ARE.

We reaping of years of terrible leadership we still got idiots who not doing things right.

incidently look at these deficiet figures. Deficiet doubled from 2008 ring bell what happened. Those toxic sub prime markets blew up came to roost. Like said labour not soul ones to be blamed everyone off them are. Rating agents have to be investigated what role they played in it.

Laughable news moody downgraded standard and poor. So we got war between themselves.

http://www.guardian.co.uk/news/datab...zoomed-picture

Re: Britain loses it's AAA Credit Rating
 

You're right Labour cocked it all up. :( But years later down the line and the Tories, in spite of austerity, are still cocking it all up. :mad:

Maybe things will improve after George gives all of his millionaire mates their tax rebate. :rolleyes: I think not.

If only we had somebody who had a clue to take over as Chancellor. George is looking like a one trick pony who has run the course but seems to have fallen at Beechers. :D

It's over time for a change Vote UKIP!!!

Re: Britain loses it's AAA Credit Rating
 

I still can't get my head round the fact that despite banging on about all these 'years of austerity' and 'clawing back of benefits etc' to get us on track

yet we still just give away 6+ BILLION pounds each year on Foreign aid

Is it just me, or have I lost the plot

Re: Britain loses it's AAA Credit Rating
 

:clap: Gets my vote :)

Re: Britain loses it's AAA Credit Rating
 

That's a small drop in the ocean, for what all Uk tax payers lose over a life time in the money taken from us under banner of taxes & then spent on other things that the government won't even discuss with public Eg; propping up the fraudulent financial money markets & then making us the tax payer pay the markets debts in the name of keeping our jobs. Most of the money the government says we owe doesn't even exist so the debt is void hence we the tax payer have no outstanding debt from years gone by. No one that has large public standing hasn't asked that question yet & got an answer straight back... they never will with a corrupt government.

toonlight

Re: Britain loses it's AAA Credit Rating
 

In spite of austerity? What austerity? The country's still living way beyond its means and the national debt is still soaring.

The great big laugh here is that Ed Balls is tub-thumping over this and demanding action, when Moody has stated that it is downgrading the UK *for not dealing with the deficit quickly enough* . Moody thinks the chancellor should have done more, and should have done it more quickly. Funnily enough I could have sworn Ed Balls has spent the last two years demanding less, and more slowly.

Re: Britain loses it's AAA Credit Rating
 

I agree with you. I feel it is a disgrace to give all this money away when we need it ourself, Charity does not begin at home in this country

Re: Britain loses it's AAA Credit Rating
 

Actually, unless I'm mistaken, the reason is the poor outlook in terms of economic growth, and that prospect isn't helped by cutting too hard.

Re: Britain loses it's AAA Credit Rating
 

Agreed

We could do austerity like Greece or Italy .People think it's bad in this country when a few state freebies are cut or brought under control .The present government have and are continuing to minimize the effect on the population as a whole because in my opinion we have had no real austerity measures compared to other countries

---------- Post added at 18:49 ---------- Previous post was at 18:43 ----------

and knowing that we are going to have to borrow an ever increasing amount increasing the deficit.Not cutting deep enough will have still meant we would lose the AAA rating but it would mean we could not regain it as quickly helping any recovery along

Re: Britain loses it's AAA Credit Rating
 

The country is going to be living beyond it's means whilst the economy stagnates and dips in and out of recession. The level of cuts that would be required to balance the books would be far too drastic. I don't think Moody's is downgrading just because we're not cutting fast enough, you could just as easily say we're not growing fast enough either. A growing economy would help us increase the money coming in and balance it that way.

Re: Britain loses it's AAA Credit Rating
 

Even the Tories ministers want rid of cock up king Osborne, Cameron has to do the right thing and sack Osborne.

At least if we have to have this crappy government for 5 more years, then he has to get rid of Ossie.

Re: Britain loses it's AAA Credit Rating
 

Some interesting commentary here:

http://blogs.telegraph.co.uk/news/to...g-fast-enough/

Re: Britain loses it's AAA Credit Rating
 

martyh greece cuts done absolute nothing made things alot worse. All but totally killed them there problem is lax tax paying. Alot rich just fled country to find another nation to plunder.

Anybody who aint in that super rich would not even be considered something so insane. Crash and burn ala scorched earth would cause massive unemployment. Middle england would be highly effected when they see there jobs or businesses go up in puff of smoke.

Dont matter damn anyway if do enough digging. Rothchilds & co calling all the tunes.

We all up creek only those with gold reserves and silver will be laughing. They manuvered world into position make Money worthless. They think too much money is circulation want it reduced.

Any those might one watch this vid. It quite interest how they hood winked all.

http://www.youtube.com/watch?feature...&v=oK-ydMVEoZM

Re: Britain loses it's AAA Credit Rating
 

But I don't think the report quite says what he says. For example..

http://www.moodys.com/research/Moody...Aaa--PR_266844

He used that line in debt-to-GDP ratio to support this argument but Moody's do not seem to be saying one or the other. Just that the debt combined with the low income mean the Government will miss their target.

At the top of the report they give their three reasons:

Re: Britain loses it's AAA Credit Rating
 

Actually, in Greece, tax evasion was prevalent throughout all levels of the economy, working class to the super rich...

Re: Britain loses it's AAA Credit Rating
 

Which says absolutely nothing about how fiscal consolidation should be achieved. It certainly doesn't rule out stimulating the economy by cutting less hard and deep.

Re: Britain loses it's AAA Credit Rating
 

indeed thats what there issue was it needed to be fixed. Goldman & sachs used greece and greek people seeing whats going off.

Incidently listening to another vid. This talks about possible future as energy.

It talks mainly america but he talks some sense.

http://www.youtube.com/watch?v=VKBMG-v0j08

28 mins was scary stuff. If you saw initial vid I posted the bloke showed how M3 money which been hidden with excuse expensive to calculate the world money has shronk over trillion.

Now the europe cant recover as it cant unite that money will disapearance in six months into blackhole. That what worked dont work anymore. He thinks greek people sussed whats going off. First one said Gold, silver currently undervalued will shoot.

He talks about the cheating, lieing, deception we been told the banking systems so overcomplex its not sustainable. He believes there will be people turn on science and technology.

To be fair its probable there already suspicious why mechinism has turned are jobs to machines. That some miricles would creat that new inovision to create next job boom. He believes its slowing down thats when people will get negative towards.

Its amazing vid like the other both give insight to issues NO government can solve it.

Re: Britain loses it's AAA Credit Rating
 

Our Chancellor has the mentality of a Bean Counter and we all know what happens to Companies or Countries that are run by Bean Counters. :(

The chronic short termist approach of just cutting enough expenditure to avoid bankruptcy just leads to a downward spiral of even more cuts ad infinitum until the final humiliation of a full scale sterling devaluation followed by a bail out from the IMF.

George has had his chance and has blown it. Unless someone with some extraordinary fiscal expertise and a little more imagination can be found I fear we are on a slippery slope to find out what real austerity means. Maybe we will see a return to the ration book as food, power and fuel spiral forever upward in cost and our buying power dwindles.

Re: Britain loses it's AAA Credit Rating
 

As things mostly seem to be cyclical, have we been in this position before in the past?

If so, what caused it, and what did we do to get out of it.

I vaguely remember the 70's were tough, but only being a kid not the detail, I also remember the mass unemployment of the early 80's (though not any jobseekers/benefits bullying stigma like now)

Anyone cast any light on the past, and what they did
to get out of the mess?

Re: Britain loses it's AAA Credit Rating
 

Here is the actual Moody's information.

Re: Britain loses it's AAA Credit Rating
 

In the 70s we had huge public spending, with all the utilities and many other industries in the public sector and haemorrhaging money. The Labour government at the time had to go to the IMF cap in hand and get a loan. In return they insisted our utilities had to be privatised.

Labour get kicked out and Conservatives enter. Put in place an austerity budget to get rid of the debt and loads of jobs are lost as a result. Unemployment hits 3m +. After two elections the economy gets back in the black and unemployment falls.

The privatisation Labour signed up to is carried out with shares sold mainly to individuals (my sister still has her two shares in BT framed in her loo). Further privatisation follows to get the public purse down.

Enter New Labour who do OK for a while, but then borrow, borrow borrow and end up screwing the economy.

Enter the coalition and the cycle begins again.

Now that is a brief overview and many will wish to slant this to fit their own political viewpoint (Labour was run by the unions v Thatcher ate children for example).

Re: Britain loses it's AAA Credit Rating
 

I agree Better Together ;)

Re: Britain loses it's AAA Credit Rating
 

As i remember it that is quite an accurate summary ,i'm sure there where other complexities involved but that is just about it .The only thing i will add is that when New Labour took office for the first five years or so they did ok because they stayed with Thatcherism (she was greatly admired by Blair)only after they reverted back to type did things go wrong

Re: Britain loses it's AAA Credit Rating
 

What you mean when they appointed Viv Nicholson as chancellor? :D

Re: Britain loses it's AAA Credit Rating
 

I actually get that,very good :D

Re: Britain loses it's AAA Credit Rating
 

actually more look more find think its deliberate spin. They trying reduce the money and trying to devalue to give us soft landing. If we can do it like 1972 rather 1929 or worse the great depression then he succeed. He dont want spook market.

I found article from last year but by heck its good stuff.

http://bilbo.economicoutlook.net/blog/?p=18007

I was shocked on the vid currency never lasted beyond 45 years ever. We now on 42 years current currency. I doubt osbourne wont be dim to understand this is so. Therefore all manouverings get ready for the big own in next 3 years. I think he fully well knows banks, businesses waiting too. So no-one going invest.

This crazy thing it might avert it but its all sit tight lets be ready wait for the crash instead steering around danger.

More of little indicator despite gold low even experts think it getting read for another spike.

http://www.moneyweek.com/investments...for-gold-62720

If the first vid right gold will go to level of curency in the world:shocked: It has happen on few ocasions at end lifespans of currency.