Our credit rating is under threat as the UK's status has gone from "stable" to "negative".
Loosing AAA credit rating will result in the goverment paying higher interest rates.
Just what we need as borrowing goes stratospheric. (April 08 borrowing £1.8 Billion, April 09 borrowing £8.5 Billion - and growing exponentially!)
Higher rates for public debt will mean higher taxes and reduced spending. It will be harder for the UK to recover in comparison to other developed countries.
A major threat to our future prosperity!
Thank you Gordan! (he got us into this mess, not Alistair)
Hmmm, credit rating agencies... 😳
Thatcher, 😀
Thatcher spent all our reserves? WTF!
So, unlike a number of surprising places, we still have a AAA rating. Unsurprisingly, given the scale of recent borrowing, the UK's outlook has been revised somewhat. In only 37% of previous cases, a change of outlook status has resulted in a ratings downgrade.
Meanwhile, the BBC also reports that the IMF now agrees with the Treasury that recent actions have succeeded in containing the crisis and avoiding a breakdown.
It could be a lot worse you know. 😕
Presumably these are the same rating agencies that gave AAA ratings to all those lovely toxic assets in the first place?
It was one of three agencies that downgraded us to negative. The other two still have us as stable.
However, we are the only AAA that has a "negative" against us right now, but that might change.
Spongebob
The real solution is to hand the creation of money back to the "people" and take it away from the central bankers, then you don't have to pay interest at all.
That is one possible solution to get us out of this mess.
Simon - that sounds interesting, could you explain a little further what that means, or point me in the direction of some sources? Ta
Er - I am in the UK on business right now and can't dig out any sources.
One book that is a must read to fully understand fiat currencies and the truth behind the creation of what we have now is a book called "The Creature from Jekyll Island" Google that and it should throw up a few articles.