Moody’s announced on Friday night that it had cut the Government’s bond rating one notch from ‘Aaa’ – the highest possible level – to ‘Aa1’.
The move is a significant setback for Chancellor George Osborne, who has faced criticism that his strategy for dealing with UK’s huge debt burden is failing to deliver.
Blame Carney!
Gawd damn Colonials screw everything up.
I posted this under a different header yesterday but it seems like a good time to transfer it as it still seems relevant.
http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2011/12/World%20debt%20to%20GDP.jpg
If this is still a A rating I wonder what you need to drop into the B’s ?
To hang on to an”A” rating, the U.S. would have to seize all our Canadian Tire money.
Of course when you own the money printing press as well as the rating agencies that gave sub-prime mortgages a AAA rating, with only fairy dust to back up your currency, it’s conceivable that eventually you will run into problems. Think Zimbabwe. The childrens future has already been sold out and we are now working on the great great grand kids. I’m sure Al Sharpton will give Obama the advice he needs to turn this ship around. Or maybe not ’cause math is hard.
http://www.ritholtz.com/blog/2011/01/is-china-really-funding-the-us-debt/
OK it’s time for a reality check. Would anyone in their right mind lend money to any western country for thirty years at these insanely low rates? Didn’t think so.
If the banks had any sense every country’s bond rating would be Aaaaaaaaaaaaaarrgghh!!
Can Canada be far behind. Canada’s GDP is 1.2Trillion our total Public Debt is around 4Trillion. Our Total Public Debt of our Provinces which includes all of socialist Municipal Government debt is close to 1Trillion. Making the total Public Debt burden of the Taxpayers 5Trillion. Ontario is approaching 300B in Debt, Quebec is approaching 400B in debt. Taxes have risen 1800% since 1961. Taxes on the average Canadian Family now consume more of the average family annual budget than food, clothing and shelter. Jean Chretein and Paul Martin the 2 self proclaimed economic genius’s sold off our National Gold Reserves of 700 Metric Tonnes and we now only hold 3 T of National Gold Reserves. We are bankrupt as well. When interest rates start to go up many people are going to get badly hurt. The socialism is hitting the wall. Still we have idiot politcians taking tax dollars to build ego project mega hockey rinks and saddling the overburdened taxpayer with the bills. And handing out huge pay packages and benefits to unionized public sector workers. Make sure you carefully examine ever politician running for office if they have the faintest taint of socialism do not support them. Your vote was never more important at all 3 levels of government.
RFB; I won’t argue your debt figures. The standard reaction to higher debt is higher interest rates. Unfortunately that ‘red flag’ is not being waived as central banks are simply creating more money as needed. In the mean time the unpublicised tax of inflation is eroding private assets.
Politicans have fashioned themselves as the only potential savior to this mess. As much as I detest the Dippers and Libels, the CPC and PMSH have not been up front with the public to educate them to the tough choices ahead.
No government in any country will wave the red flag because that would be like screaming “fire” in a theater. At this point it would take very little to start a panic and a run on currency. Better to keep pumping sunshine and hope for a miracle. Any alternative is to admit defeat and acknowledge the fact that we are sliding off the cliff into a world wide recession. All roped together like mountain climbers and all going down when the first one falls. They are all well aware of their predicament. Just can’t let the sheeple know just how bad it really is.