British Debt Downgraded
Discussion
A Chinese ratings house has downgraded Britain's sovereign credit rating over what it said was the country's gloomy economic growth prospects and weakening ability to pay back debt.
Dagong Global Credit Rating Company downgraded the UK's local and foreign currency sovereign credit rating to A+ from AA- with a "negative" outlook for its solvency, the company said in a statement.
The downgrade reflected "the deteriorating debt repayment capability of the UK and the difficulty in improving its sovereign credit level in a moderately long term in the future," it said.
Uncertainties arising from the Bank of England's future monetary policy and the impact of debt-laden European countries on the British financial system are "likely to further worsen the government's fiscal status", it said.
The British economy grew 1.3pc last year and Dagong said it expected the rate to show little or no change in the coming two years, which "directly curbs the improvement of the national economic status."
Dagong has made a name for itself by hitting out at its Western rivals - Moody's, Fitch and Standard & Poor's - saying the big three caused the financial crisis by failing to properly disclose risk.
The Chinese agency, which is trying to build an international profile, has given the United States and several other nations lower marks than they received from the Western ratings firms.
http://www.telegraph.co.uk/finance/economics/85323...
Dagong Global Credit Rating Company downgraded the UK's local and foreign currency sovereign credit rating to A+ from AA- with a "negative" outlook for its solvency, the company said in a statement.
The downgrade reflected "the deteriorating debt repayment capability of the UK and the difficulty in improving its sovereign credit level in a moderately long term in the future," it said.
Uncertainties arising from the Bank of England's future monetary policy and the impact of debt-laden European countries on the British financial system are "likely to further worsen the government's fiscal status", it said.
The British economy grew 1.3pc last year and Dagong said it expected the rate to show little or no change in the coming two years, which "directly curbs the improvement of the national economic status."
Dagong has made a name for itself by hitting out at its Western rivals - Moody's, Fitch and Standard & Poor's - saying the big three caused the financial crisis by failing to properly disclose risk.
The Chinese agency, which is trying to build an international profile, has given the United States and several other nations lower marks than they received from the Western ratings firms.
http://www.telegraph.co.uk/finance/economics/85323...
Aren't these the jokers that are unable to distance themselves sufficiently from the Chinese Government?
And aren't these the guys that a couple of months ago went on the record that US and UK lower military spending is a good thing?
And if the debt rating goes lower, then debt repayments go up, which is good for anyone holding UK/US debt?
Like China for instance? So as China allows the yuan to float on the market properly, the debt to the west doesn't get devalued, because their own debt agency is downgrading the debt?
I'm sure all of this is a coincidence.
And aren't these the guys that a couple of months ago went on the record that US and UK lower military spending is a good thing?
And if the debt rating goes lower, then debt repayments go up, which is good for anyone holding UK/US debt?
Like China for instance? So as China allows the yuan to float on the market properly, the debt to the west doesn't get devalued, because their own debt agency is downgrading the debt?
I'm sure all of this is a coincidence.
tinman0 said:
Aren't these the jokers that are unable to distance themselves sufficiently from the Chinese Government?
And aren't these the guys that a couple of months ago went on the record that US and UK lower military spending is a good thing?
And if the debt rating goes lower, then debt repayments go up, which is good for anyone holding UK/US debt?
Like China for instance? So as China allows the yuan to float on the market properly, the debt to the west doesn't get devalued, because their own debt agency is downgrading the debt?
I'm sure all of this is a coincidence.
And aren't these the guys that a couple of months ago went on the record that US and UK lower military spending is a good thing?
And if the debt rating goes lower, then debt repayments go up, which is good for anyone holding UK/US debt?
Like China for instance? So as China allows the yuan to float on the market properly, the debt to the west doesn't get devalued, because their own debt agency is downgrading the debt?
I'm sure all of this is a coincidence.
Of course it is.
Not to say that Camoron has got a grip on the UK deficit and debt situation as yet. That's if he has a grip rather than something resembling the flaccid remains of a filleted haddock.
Jimbeaux said:
Fittster said:
If these guys are to close to the interest of China (who actually could lend money) aren't the 3 major rating agencies too close to the US government (who need to borrow a lot).
Ole' Fitt, he just can't wait for the West to fall. Fittster said:
Jimbeaux said:
Fittster said:
If these guys are to close to the interest of China (who actually could lend money) aren't the 3 major rating agencies too close to the US government (who need to borrow a lot).
Ole' Fitt, he just can't wait for the West to fall. Why is anybody surprised?
This is the natural consequence of the Government's total failure to cut spending.
We all knew that Labour had bankrupted us. The Con-Dem coalition has not made any real cuts. They have only redistributed the bloated spending that got us into this mess in the first place.
Cuts in Policing whilst increasing foreign aid to nuclear powers?? FFS, even Winky wasn't that stupid.
Don
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This is the natural consequence of the Government's total failure to cut spending.
We all knew that Labour had bankrupted us. The Con-Dem coalition has not made any real cuts. They have only redistributed the bloated spending that got us into this mess in the first place.
Cuts in Policing whilst increasing foreign aid to nuclear powers?? FFS, even Winky wasn't that stupid.
Don
--
How predictable, the usual suspects attacking economic realists as wanting the West to fail rather than face up to the fact that the west has some serious issues to face, and that there is no guarantee of future dominance by the US, UK and Europe IF they continually fail to manage down their economies to manageable and realistic levels.
The UK economy is f
ked as it stands. It is simply unsustainable to keep up the level of spending on benefits that we are currently. No one else in the world gives out the same level of welfare we do -free houses, child benefits etc. And without encouraging or coercing millions to ever work a day in their lives. The damage is far greater than just economic.
The UK economy is f
ked as it stands. It is simply unsustainable to keep up the level of spending on benefits that we are currently. No one else in the world gives out the same level of welfare we do -free houses, child benefits etc. And without encouraging or coercing millions to ever work a day in their lives. The damage is far greater than just economic.Bing o said:
How predictable, the usual suspects attacking economic realists as wanting the West to fail rather than face up to the fact that the west has some serious issues to face, and that there is no guarantee of future dominance by the US, UK and Europe IF they continually fail to manage down their economies to manageable and realistic levels.
The UK economy is fked as it stands. It is simply unsustainable to keep up the level of spending on benefits that we are currently. No one else in the world gives out the same level of welfare we do -free houses, child benefits etc. And without encouraging or coercing millions to ever work a day in their lives. The damage is far greater than just economic.
OK, I can't argue with that. The UK economy is f
ked as it stands. It is simply unsustainable to keep up the level of spending on benefits that we are currently. No one else in the world gives out the same level of welfare we do -free houses, child benefits etc. And without encouraging or coercing millions to ever work a day in their lives. The damage is far greater than just economic.
Bing o said:
No one else in the world gives out the same level of welfare we do -free houses, child benefits etc. And without encouraging or coercing millions to ever work a day in their lives. The damage is far greater than just economic.
You sure about that? What about the Scandinavian countries, with their very large welfare states?Hell, what about France?
CommanderJameson said:
You sure about that? What about the Scandinavian countries, with their very large welfare states?
Hell, what about France?
But do the Scandies have the kind of deficit we have, the level of public indebtedness, bailed out banks and a quarter of the adult population economically inactive? They are also sat on natural reserves. The NHS is still the third largest employer in the whole world. Hell, what about France?
It is quite possible to live your entire life in the UK taking free education, healthcare, housing, benefits and pensions without contributing a single days hard work in your entire life. There is an argument to say that this is the hallmark of a civilised society, but I would argue that this is almost post-civilisation. A whole generation who have opted out of anything productive or socially inclusive, who bring nothing to their country. This all has to be paid for. The workers have to subsidise the lazy millions of pounds overbtheir lifetimes. It's not fair, and it's not right. And if you can't see how this is f
king us over on a global scale then you need your eyes tested.Gassing Station | News, Politics & Economics | Top of Page | What's New | My Stuff