UK to lose Triple A credit rating - Should we be worried?

[Gromit]

George Osborne in a previous life...

// The Conservative Party's Shadow Chancellor, George Osborne, commenting on the downgrade, said "It's now clear that Britain's economic reputation is on the line at the next election, another reason for bringing the date forward and having that election now." //

Is it a sign the Government's policies have failed?

[emmie]

no

[sunny-dave]

Yes

[douglas9401]

A third way. :)

[Sqad]

Gromit......I have no idea........except to say that the UK has a black hole deficit greater than that of Greece and that an economic collapse is avoided because we can borrow money cheaply due to our credit rating.

[factor-fiction]

I though quite a number of European countries have actually been downgraded, whereas they are just saying they may have to revise Britain's rating. We still have the top AAA rating.
Does anyone have a link to a list of credit ratings for the major economies?

[Craftypig]

http://www.guardian.c...fitch-moodys-standard

[d9f1c7]

No, the so called ratings agencies are a discredited bunch of spivs. Surely no one takes anything they say seriously. Their whole model is based on getting paid to rate things and they have to compete with the others. Moody's/Fitch/standard and poors compete for the same business so they basically give the rating the customer wants or the customer goes elsewhere for their triple A. These are the guys up to their necks in the financial collapse. These Guys rated Enron AAA 3 weeks before it collaped! Ok for rating of countries it is slightly different but really their credibility is seriously doubtful.

[emmie]

It's a belt tightening exercise and if we don't do it, perhaps we will end up like Greece, and the mess they are in.

[factor-fiction]

Do you believe anyone, d9f1c7.
So why does Japan for example get a lower rating?

[Gromit]

Weren't we boasting to France only a couple of months ago we had our AAA and they hadn't?

(If) we lose ours, isn't it a bit hypocritical to then say it doesn't matter and the ratings agencies are spivs who do not know what they are talking about?

Going back to the question. The Government's deficit reduction strategy and austerity measures do not seem to be having the desired effect. We have had nearly two years of pain with no gain. Is the policy deeply flawed?

[factor-fiction]

We may not find out for a few years, unfortunately, Gromit.
Has any country pursued a different strategy and achieved a better result?

[Gromit]

Factor30

The US has. Obama has not cut Government spending to the same degree and it has not printed more money. The US is seeing good growth while we teeter on the brink of a double dip recession.

[emmie]

Gromit, the US has one of the biggest debt problems on the planet, and more of their people are falling into poverty than almost anywhere. Their growth is small and Obama will be fighting for his political career sooner than later. People are disillusioned with him for not being more assertive. Once market driven countries like China, India really flex their muscles then wait for the fallout in the west, it's coming and we should at least do our very best to cut back whilst we can, because if we don't it will be a much longer road to recovery. Our credit rating is good in consideration, the City of London generates Billions in revenue for Britain, have a look at the figures. The French are the ones who won't be crowing, they have lost credibility on the world stage, the Germans are moaning about having to keep on bailing out Greece which will soon default, and then probably revert to the Drachma, if they don't then they will be tied to Germany for ever, and no Greek wants that. Italy's debt is massive, so no one currently in Europe or America is having it easy.

[rojash]

There are some silly answers in this thread. d9f1c7's criticisms of the agencies may well be true, but if the credit rating drops, the cost of borrowing rises, and we borrow a lot. So of course it matters.

[weecalf]

again when in opposition you get away with saying anything .good reason for never letting opposition into goverment .

[HowardKennitby]

I don't think the absolute value matters here. If yours is higher than everyone else then you are OK.