It looks like you're using an Ad Blocker.

Please white-list or disable AboveTopSecret.com in your ad-blocking tool.

Thank you.

 

Some features of ATS will be disabled while you continue to use an ad-blocker.

 

U.K. May Lose AAA Rating at S&P as Finances Weaken

page: 1
5
<<   2 >>

log in

join
share:

posted on May, 20 2010 @ 08:16 AM
link   

U.K. May Lose AAA Rating at S&P as Finances Weaken


www.bloomberg.com

May 21 (Bloomberg) -- Britain may lose its AAA credit rating for the first time as government finances deteriorate in the worst recession since World War II.

Standard & Poor’s lowered its outlook on Britain to “negative” from “stable” and said the nation faces a one in three chance of a ratings cut as debt approaches 100 percent of gross domestic product. The pound fell the most in four weeks against the dollar, the FTSE 100 Index slid as much as 2.8 percent and...
(visit the link for the full news article)



posted on May, 20 2010 @ 08:16 AM
link   

Britain would become the fifth western European Union nation to lose its rating because of the economic slump, following Ireland, Greece, Portugal and Spain. The U.K.’s debt load next year will be 66.9 percent of GDP, exceeding Canada’s 29.1 percent and Germany’s 58.1 percent, according to April 22 forecasts by the International Monetary Fund. The U.S. will be at 70.4 percent, and the 16-nation euro area at 69 percent, according to the IMF.


It is my belief that the UK economy is not in a state that is significantly worse than its US counterpart. Both are about to reach 100% of GDP, yet there is no indication that the US credit rating is going to be downgraded in the short term.

And it seems more people wonder why this is the case:


Who Would Dare Downgrade U.S. Debt?

In an open letter to Standard & Poor's, Moody's and Fitch on Monday, Martin Weiss argues that the three rating agencies should downgrade U.S. long-term debt. He acknowledges the turmoil it would create, punishing Treasury bonds and causing interest rates to spike. In Weiss's view, however, leaving the AAA-rating untouched could ultimately prove far worse. It gives Congress a free pass to add to the public debt and encourages investors to buy Treasury notes and bonds, whose low yields, he believes, don’t compensate for the dangers.

"Worst of all," Weiss writes, "by continuing to reaffirm America's triple-A rating, you help create a false sense of security overall--the recipe for a possible meltdown in the market for U.S. sovereign debts."


www.bloomberg.com
(visit the link for the full news article)



posted on May, 20 2010 @ 08:20 AM
link   
reply to post by Mdv2
 


The economy is a shambles, we are swimming in debt and the only way is to cut expenditure dramatically and reduce the size of government.... yet many people i talk to are still fighting AGAINST cutting expenditure in many areas. They seem to think we can fix the economy without having to take a hit in many areas, madness.



posted on May, 20 2010 @ 08:24 AM
link   
With their recent track record, it amazes me that S&P are still in business! The role of Credit Rating agencies was a contributory factor in the banking meltdown and has not got the attention it deserves, from either commentators or regulators.



posted on May, 20 2010 @ 08:28 AM
link   
reply to post by Mdv2
 





It is my belief that the UK economy is not in a state that is significantly worse than its US counterpart. Both are about to reach 100% of GDP, yet there is no indication that the US credit rating is going to be downgraded in the short term.


The U.S. most certainly is facing the same troubles and stories reporting these troubles can be found h ere, here, here, here, and here, to cite just a very few articles reporting of this concern



posted on May, 20 2010 @ 08:35 AM
link   
Things really dont look good for us in the UK. It does worry me the effect of the cuts we are going to have to make. Still if we make the cuts now we have a risk of going back into recession, which according to the economist David Blanchflower, would send the UK's economy into a death spiral.

www.guardian.co.uk...



posted on May, 20 2010 @ 08:40 AM
link   
This may sound inflammatory but I think this "rating" game played by the financial industry is really a "political" act.

The banking cartel should be considered a state. They are exercising controls and manipulation at a supranational level through coordinated efforts.

The only reason to play with a nation's rating is to encourage gambling... the kind of gambling THEY always encourage... the kind where they win if you do... and if you lose... they win.



posted on May, 20 2010 @ 08:46 AM
link   
reply to post by Mdv2
 


This so hilarious I can not stop laughing, Why? because the terrorist agency call rating agency did this to Greece then they were forced to take a loan from international bancks.

Then Spain got the same warning miraculously Spain said that they are doing just fine
(after the saw what happen to Greece), now they are after UK, very soon the will go After Germany, because this last two nations are about to destroy the EU.

I tell you globalist are taking over, but darn if the nations been taking over will not go without some hell.


[edit on 20-5-2010 by marg6043]



posted on May, 20 2010 @ 08:51 AM
link   
reply to post by Solomons
 


Growth is more important. Because of our over dependence on Banking and Financial Services, the crisis has resulted in us in losing over 5% of GDP and it 'aint coming back. An orgy of cuts will reduce economic activity, consumer confidence, business investment and levels of employment. All of which will have direct consequences for Tax Revenues. One glimmer of hope is the performance of the manufacturing sector. We have to get back to making things and offering tangible services.



posted on May, 20 2010 @ 08:55 AM
link   
reply to post by Fang
 


Dear if you compare the US to UK deficit and GDP US should have been downgraded bottom line a decade ago.

But it didn't happen we are still running and unsustainable deficit, we have a currency that is only backed by the willingness of our debtors to buy our debt and our trade deficit is been in historical lows for years.



posted on May, 20 2010 @ 08:59 AM
link   
The only way the UK (and all other nations in debt) can get out of the cycle is to go down the wealth creation route.

That is the one aspect that has been missing throughout the last 2 years, no gov has gone down that route.. instead they borrow and print more cash..

There is only one other route in my mind out of this mess without a decent amount of wealth creation (i.e jobs and industry) and that is in a conflict.

IMHO the bailouts should have brought the establishment the time to start that process of wealth creation... yet as they haven't I can only assume they are expecting some kind of conflict (or orchestrating one)



posted on May, 20 2010 @ 09:03 AM
link   

Originally posted by woodwardjnr
Things really dont look good for us in the UK. It does worry me the effect of the cuts we are going to have to make. Still if we make the cuts now we have a risk of going back into recession, which according to the economist David Blanchflower, would send the UK's economy into a death spiral.

www.guardian.co.uk...


The Guardian is a Pro Labour paper, of course this article is spun in the favor of Labours stupendous idea of spending your way out of recession.

I might point out it was Labour who got us in this mess in the first place!!

Besides, now we have the conservatives at the helm, we should see the deficit reduced significantly over the next 24 months.

Korg.



posted on May, 20 2010 @ 09:11 AM
link   

Originally posted by marg6043
reply to post by Mdv2
 

Then Spain got the same warning miraculously Spain said that they are doing just fine
(after the saw what happen to Greece), now they are after UK, very soon the will go After Germany, because this last two nations are about to destroy the EU.

I tell you globalist are taking over, but darn if the nations been taking over will not go without some hell.


[edit on 20-5-2010 by marg6043]


Well said, though I would add this...

Our country has not engaged in any attempts to destroy the euro, we don't need to, it was doomed from the start.

Anyone with half a brain could see that a single currency in an area where there is such a divide in culture / language / wealth and power would never work.

However you are absolutely correct, the globalists will not go down without trying to claw countries such as the UK down. And you are also right when you say the UK will not go down without a fight.

I say let the Euro fail, then convert them to Sterling, suddenly our status would AAAAAAA+++ lol


Korg.



posted on May, 20 2010 @ 09:26 AM
link   
reply to post by marg6043
 


Well yes, but the USA does tend to be the exception to the rule. Such a large economy allied with the USA's geopolitical influence does tend to mean they can play by a different set of rules. Remember the late 70's when some Americans were getting nervous about the level of indebtedness to Saudi Arabia? Then it was pointed out what the consequences would be for the Saudi's if the US decided to review their 'obligations'.
Same with China today. Do they really have the whip hand over the US? The UK's position is very different.



posted on May, 20 2010 @ 09:34 AM
link   

Originally posted by Fang
reply to post by marg6043
 

The UK's position is very different.



What most people seem to forget, and is especially true of Europeans, that the UK and the US are brothers.

I very much doubt that there are many British that would not put thier lives on the line for the Americans and Vice Versa.

If things were looking no way out then the US would step in and say "Ahem" lol


Whats more is do you know exactly how much land across the world is owned by the queen??


Queen Elizabeth II, head of state of the United Kingdom and of 31 other states and territories, is the legal owner of about 6,600 million acres of land, one sixth of the earth’s non ocean surface. She is the only person on earth who owns whole countries, and who owns countries that are not her own domestic territory.

This land ownership is separate from her role as head of state and is different from other monarchies where no such claim is made – Norway, Belgium, Denmark etc. The value of her land holding. £17,600,000,000,000 (approx).


Who Owns the World

Peace out,

Korg.



posted on May, 20 2010 @ 09:37 AM
link   
reply to post by Korg Trinity
 


The US Subprime Fiasco was Labours fault? You think they should have let Northern Rock, Lloyds, HBOS, RBS et all go to the wall?

I'm sure the Tories will cut the deficit as quickly as they can. Let's hope we all have jobs and homes to go to when they have finished.



posted on May, 20 2010 @ 10:00 AM
link   
Sigh - sold my home last year - phew - just waiting to find the right home to buy. And house prices are still increasing, not due to the climate, but due to greedy estate agents. As long as they run as they are, people will not be able to afford them. Especially if we double dip like they say we are going to do. So that will mean people will, if they can afford to, take their houses off the market again. Then thats really gonna stuff things up.



posted on May, 20 2010 @ 10:05 AM
link   
reply to post by Korg Trinity
 


UK doesn't need to worry about the Euro downfall at all, after all they never actually gave their sovereignty to begin with, and Still have a strong currency that if history repeat itself the new elected power can bring UK glory back.

No like the US that the glory is gone oversea and what we got is a growing deficit.



posted on May, 20 2010 @ 10:06 AM
link   

Originally posted by Fang
reply to post by Korg Trinity
 


The US Subprime Fiasco was Labours fault? You think they should have let Northern Rock, Lloyds, HBOS, RBS et all go to the wall?

I'm sure the Tories will cut the deficit as quickly as they can. Let's hope we all have jobs and homes to go to when they have finished.



So you think labours stupendous borrowing and swollen public sector, were a result of the US subprime situation???

I don't deny the global financial mess the banks created, however England would not be in the mess it is in if Labour had controlled its spending.

We would have be far more boyant in global financial turbulence if Gordon Brown had not made decisions like selling a large proportion of our glold reserves at the lowest point in the market, enabling uncontrolled immigration only to pay £££ to them in benefits, allowing the public sector to grow massively, Raiding the pension funds only to have to borrow the money when pensions are due, bidding for the 2012 Olympics, allowing people to remain on benefits indefinably with no repercussions, Reducing VAT to 15% only to increase it again at a point where fuel prices were at an all time high.etc etc etc.

The list goes on and on.

Thank god the Conservatives got in and are doing something immediately to cut spending by reducing the public sector, reducing the amount of people on benefit, reducing the cost to employ staff, increasing peoples disposable income, controls on immigration, cutting internal government running costs by having a recruitment freeze, capping top earner in public services, stripping away additional costs such as ID cards, and Failing IT projects that are out of date before they are implemented, scrapping the broadband tax bill and giving back power to the teachers of schools etc etc etc.

This list also goes on and on.

Whether you like to admit it or not, it was Labour that got the UK into the largest deficit we have ever had and I guarantee it will be the conservatives that will reduce it at a faster rate than ever previously seen, while enabling the country to grow.

Peace Out,

Korg.



posted on May, 20 2010 @ 10:08 AM
link   
And yet they still want billions more to help Greece out. The EU really is sucking whatever little is left out of this country.




top topics



 
5
<<   2 >>

log in

join