UK AAA credit rating at risk
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UK AAA credit rating at riskhttp://www.bbc.co.uk/news/business-17375585
And do you know what I have to say? Good! British people rubbed their hands in glee when the world's only superpower (the USA) lost theirs, and now we are about to lose ours. What will be the effects do you think, other than Americans (quite rightly) gloating? -
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Re: UK AAA credit rating at riskDid they, I don't recall?(Original post by Otkem)
http://www.bbc.co.uk/news/business-17375585
And do you know what I have to say?
Good! British people rubbed their hands in glee when the world's only superpower (the USA) lost theirs,
There's a 50% chance we'll lost it in the next couple of years.and now we are about to lose ours.
On its own, very little.What will be the effects do you think,
I really don't think they'll care very much, or even notice.other than Americans (quite rightly) gloating? -
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Re: UK AAA credit rating at riskNever mind on this, there are more pressing issues to deal with like very soon another round of 100 year gilts is about to be issued..... means today's and some of yesterday's debt shall be repaid by your great grand children.
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Re: UK AAA credit rating at risksarcasm ?(Original post by Classical Liberal)
Downgrading the UK just smacks of stupidity. We have our own central bank who are very happy to print money to buy our debt. We are not going to default on our debtors. -
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Re: UK AAA credit rating at riskIt seems a somewhat strange situation, but I think the truth is that George Osborne's political career - and possibly David Cameron's along with him - is dependent upon us retaining our AAA rating.
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Re: UK AAA credit rating at riskIt is the truth.(Original post by That_user)
sarcasm ?
The reason why our interest rates are so low and why our economy is not like Greece is that we have control over our own currency.
When the bank england does quantitative easing, essentially printing money, one of the main things it buys off the market is UK government debt. This means that in theory the bank of england can pay off all of debts of the UK gov. with money it prints, although the BoE would then own the debt but the BoE has been 'nationalised'. Therefore there is very little risk we will default on the debt. What is more likely is inflation. The reason why interest rates on UK government debt are so low now is because the BoE has reduced the supply of said assets on the market (not whatever **** Stephanie Flanders says about investors not wanting to buy UK debt or some *******s). And then it is basic supply and demand from there.
This is why not joining the Euro was such a great decision. If we had joined we would have been truly ****ed beyond belief. Full scale rioting kinda ****.
It would be far more useful for these credit rating agencies to publish some kind of inflation report (it is a joke the government publishes its own inflation target) for the UK economy rather than a risk of default. The ****ers are just wasting every bodies time and confusing people.
Come to think of it, maybe that is a good business idea
Last edited by Classical Liberal; 15-03-2012 at 14:14. -
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Re: UK AAA credit rating at riskActually most people just face palmed when the US lost its credit rating, mainly because it was partly to do with how polarised the country has become. No one with half a braincell would be happy to see the US economy tanking(Original post by Otkem)
http://www.bbc.co.uk/news/business-17375585
And do you know what I have to say? Good! British people rubbed their hands in glee when the world's only superpower (the USA) lost theirs, and now we are about to lose ours. What will be the effects do you think, other than Americans (quite rightly) gloating? -
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Re: UK AAA credit rating at riskI am not sure that is true. Politicians change their criteria for judging their success all the time. Even Brown dropped his favourite punchline 'No more booms and busts' when the bust happened to 'I saved the banks/world' and we still almost voted him back.(Original post by py0alb)
It seems a somewhat strange situation, but I think the truth is that George Osborne's political career - and possibly David Cameron's along with him - is dependent upon us retaining our AAA rating.
If we lose the coveted AAA rating they will simply blame it on Europe and remind us the interest rates for the debt are still manageable and are at historic lows. After all even Japan with over a 200% debt to GDP, who lost their AAA rating long time ago still pay very low interest rates.
