Moody's Downgrades The UK From AAA To Aa1

Zerohedge have just announced that Moody's has downgraded the UK's government bond rating from AAA To Aa1. Outlook stable.

Zerohedge

1. The continuing weakness in the UK's medium-term growth outlook, with a period of sluggish growth which Moody's now expects will extend into the second half of the decade;

2. The challenges that subdued medium-term growth prospects pose to the government's fiscal consolidation programme, which will now extend well into the next parliament;

3. And, as a consequence of the UK's high and rising debt burden, a deterioration in the shock-absorption capacity of the government's balance sheet, which is unlikely to reverse before 2016.

In other UK financial and economic news, the Bank of England's David Miles has said QE may need to be raised by £175bn.

It looks like the UK is diving in the global currency war. So where is the grand recovery in England? Doesn't appear to have worked out quite like previously expected. Apparently more people are working but it is not delivering meaningful economic growth.

still better than china, right ?

reply to post by syrinx high priest


And it could be worse, we could be any other country in Europe that has the Euro as its currency.

Well at least we’re not Greek and only a little bit Irish.

There should be a call for the UK to stop all foreign aid: to help rebalance the books. This will not happen because the media will not put enough pressure on the government. However please post here agreeing with me to save our countries finances.

reply to post by werewolf99

However please post here agreeing with me to save our countries finances.

But I don’t agree with you, dropping down to AA1 really isn’t that big of a deal, economically the UK is actually not that bad when compared to our Euro-Zone neighbours.

The downgrading probably won’t really have an impact on you or I yet you think it is a valid reason to stop international aid to countries that have people relying on it to eat a night because your milk costs 10p more than it did a couple of years ago.

Nope, don’t think I do agree with you on that but I am posting anyway.

reply to post by OtherSideOfTheCoin


Let's not forget, this aid should first and foremost be used helping the impoverish Brits that are struggling just the same.

Still waiting to hear how this is Obama's fault.

reply to post by DAZ21


Don’t get me wrong, I do think at times one could argue that the balance is wrong but the government does provide us with more “aid” if you like than they provide to say the starving people of Ethiopia. The state provides very good welfare in comparison to many other states although again tis not perfect the system could do with a change.

But my point of contention there was that a slight downgrading in the UK’s economic rating is not a justification to say “ahhh bugger them, we’re keeping all that aid money for Ethiopia, they can starve to death, until we get that extra A back”. Its just a stupid argument.

Foreign aid isn't aid, it's bribe money.

Why do people think governments would voluntarily give away all kinds of money on account of altruism? The word doesn't work like that.

Advance payments on contracts, deal sweetners, buyoffs, these things all need to be paid and they fall under the category of "bribes" which aren't acceptable for some reason. The government still needs to account for these outgoings, so they are categorised as the slightly more acceptable "foreign aid."

Without this foreign aid, we would lose out on all kinds of import and export deals, foreign job contracts, drilling rights and so on. We would lose more by stopping foreign aid than by continuing to give it - it's like an investment.

For a more entertaining explanation, see Series 3 Episode 4 of Yes, Minister - "The Moral Dimension"

Moodys is one of the credit agencies who did not see the economic crash coming and gave the thumbs up the the banking scams.

Not sure I would trust them as far as I could throw them. Same old pointless dross.

Regards

It's not that big of a deal. Also most rating agencies come from the US and who knows what hidden agenda they have. It's a bit strange that all these agencies come from one country. They should put a ban on them in Europe. Nevertheless, it's not big news, it' been hanging in the air for some time....but anyway who cares, no one does in the UK. Just from AAA to AA1

Goes without saying that it is Obamas fault.

*cough*

I remember when France were downgraded. a member called Evan B went to town on France :

Originally posted by EvanB
Speaks for itself

France has lost its AAA rating

As an Englishman I find that funny as fk! Lol

I hope thhat those Scottish separatists are taking notes lol
Source

edit on 13-1-2012 by EvanB because: (no reason given)

edit on 13-1-2012 by EvanB because: (no reason given)

edit on 13-1-2012 by EvanB because: (no reason given)

Link to the very thread:

On the Plus Side, France Has Been Downgraded LOL,



Do you still think its funny Evan B ?

Sorry, cant help it

yup it's obamas fault.

and i'am serious...

reply to post by surrealist

Why exactly do we trust a NGO like Moody's?
Who supervises the supervisors and who controls whom here?
Who appointed them and why has a non-democratic elected body a consultancy role like this in the first place?

I'm not even saying the UK didn't deserve her rating to be downgraded, but how do we know Moody's isn't controlled by the centralist scum in order to silence british EU skeptics and to further push for a EU debt union?

The ratings agencies are as much to blame for the financial crisis of 2008 as any government or bank. These agencies were giving triple A ratings to derivatives combined of sub prime mortgage debt. The type of financial packages the banks knew were junk, yet sold them to investors and countries like Greece, under a triple A pretence.

These agencies should be investigated for fraud and dismantled, like the rest of the zombie banking system.

Originally posted by bjax9er
yup it's obamas fault.

and i'am serious...

Please explain how this is all Obamas fault . I think you give one man far too much credit.

Originally posted by Dispo
Foreign aid isn't aid, it's bribe money.

Why do people think governments would voluntarily give away all kinds of money on account of altruism? The word doesn't work like that.

Advance payments on contracts, deal sweetners, buyoffs, these things all need to be paid and they fall under the category of "bribes" which aren't acceptable for some reason. The government still needs to account for these outgoings, so they are categorised as the slightly more acceptable "foreign aid."

Without this foreign aid, we would lose out on all kinds of import and export deals, foreign job contracts, drilling rights and so on. We would lose more by stopping foreign aid than by continuing to give it - it's like an investment.

For a more entertaining explanation, see Series 3 Episode 4 of Yes, Minister - "The Moral Dimension"

Agree ! For real world evidence consider why we give money to India and why until very recently we were giving it to China.

In the case of india it because we realise we are screwed and are desperately trying to ingratiate ourselves with a rising power. Grovelling and pathetic.

Countries with space programs and nuclear programs and who will soon be militarily stronger than us should not get aid.

The thing is it has been shown that the aid which goes to Africa largely goes to dictators. That which does go to the people only helps things stay liveable enough so that the dictatois do not get thrown out. Although with the vast wealth they have which we have helped them emass it would be difficult. If we stopped givinh aid then the dictators would become less powerful. The story if probably similar in many countries to which we give aid. We should remember Africa has a large amount of mineral wealth: many gold mines. It is the dictators which keeps the country as it is. We should not be so ited up in our it's the effort that county mentality that the people take the real cost.