Britain loses its AAA Credit Rating

[huxleypiguk]

Originally Posted by techguyone

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?

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).

[nashville]

Originally Posted by Chris

Some interesting commentary here:

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

I agree Better Together

Originally Posted by huxleypiguk

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).

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

[Osem]

Originally Posted by martyh

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

What you mean when they appointed Viv Nicholson as chancellor?

Originally Posted by Osem

What you mean when they appointed Viv Nicholson as chancellor?

I actually get that,very good

[mertle]

Originally Posted by Mick Fisher

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.

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

These kind of extreme measures suggest gold is a market that perhaps getting ready to turn back up. These are feelings associated with bottoms rather than tops. However, for now, the trend is down - and trends are powerful things.

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