Credit Rating

Credit ratings matter in this wicked world. People who lend money like the idea that they will get it back on time with interest. Some countries do it. Others might or might not. That is where Credit Rating Agencies come into the picture as far as personal finances are concerned. Sovereign debt means gigabucks every time. Different firms do national ratings. Being able to borrow cheap means lenders are confident. Argentina found out the hard way when it defaulted.

Aforesaid agencies fouled up big time when it came to the mortgage meltdown which led to Financial Crisis 2008. Politicians forced banks to lend money to people who could not, would not pay back. It sounded good at the time. It worked well until pay back time came. People said unkind things about Warren Buffet, the man who understood money, the man who owned a rating agency that gave AAA rating to some very dodgy outfits.

Agencies have their rating scheme. England has dropped down to the same level as France:-

 

 

 

Cameron Drives Sterling Down & Loses AAA Credit Rating [ 24 February 2013 ]
QUOTE
Leading credit agency Moody's downgraded Britain to  AA1 yesterday
The UK is now at the same rating level as France

Chancellor George Osborne today refused to admit he had failed in his commitment to protect Britain's credit rating, despite seeing it downgraded by leading agency Moody's yesterday afternoon. [ Is anyone stupid enough to believe a politician - Editor ].........

Asked if he had broken his commitment to protect Britain's credit rating, he said: 'I've consistently argued that Britain has a debt and deficit problem, that we've got to tackle that head on, that we've got to take tough measures to do that, and I think people understand that..............

In February 2010, just months before taking control of the Treasury, Mr. Osborne declared: ‘Our first benchmark is to cut the deficit more quickly to safeguard Britain’s credit rating. I know that we are taking a political gamble to set this up as a measure of success.’....

How the ratings compare...........

Downgraded nations

    France - Was stripped of its AAA rating in November 2012, despite President Hollande's pledge of reforms. Moved to the Aa1 rating, Moody's highlighted the 'structural challenges' as the main reason for the downgrade, such as high unemployment and lack of competitiveness.

    Spain - Standard & Poor cut Spain's credit rating by two notches to BBB- in February 2012 after citing the economic conditions severely limited the government's options.

    Italy - Moody's downgraded Italy's rating from A3 to Baa2 on concern that deteriorating financial conditions in Europe will lead to a sharp rise in borrowing costs.

    Portugal - Their credit rating was downgraded to the same level as Spain in 2012, BBB-, which is below the investment level, one level above junk status. This was based on concern that deteriorating financial conditions in Europe will lead to a sharp rise in deepening political, financial, and monetary problems within the euro zone, with which Portugal is closely integrated.

    USA - Their rating was downgraded to AA+ from AAA for the first time, which was seen as a symbolic blow to one of the great powers. Fears over how the national debt could be lowered was seen as a key factor.

    Greece - The struggling country has actually seen its status raised - however it was rock bottom at 'selective default' and is now at B- in light of its determination to cut spending, as wel [ sic ] as the willingness of other eurozone countries to help out.

    Slovakia, Slovenia and Malta have also seen their ratings downgraded in the last two years.

However, Labour has insisted that withdrawing demand from the economy has put it more at risk by stunting growth. [ Labour lies. When doesn't Labour lie? - Editor ]
UNQUOTE
Economists like waffle, drivel, obscurantist rubbish. It conceals truth. One such was John Maynard Keynes, the one who went the other way. Taking to women failed to amuse the Bloomsbury Group. Keynes was not just a Useful Idiot, he was  dangerous idiot because people took his drivel seriously. They did not think about which bits made sense or which bits were dangerous nonsense.

Osborne is a spendthrift rogue wasting at least 50% of the budget. Bribing special interests has long been policy. Bribing Illegal Immigrants is gross stupidity as well as Treason. It is Labour's system of Vote Rigging. Cameron is letting them get away with it.