How Vulnerable is Sterling?
Posted by Old Boy
Britain is edging closer to losing its gold-plated sovereign credit rating due to weak growth and increased government borrowing, rating’s agency Fitch has warned. It reconfirmed Britain’s “negative outlook”, slashed its forecast growth from 0.8per cent to a 0.3per cent for this year. It warned that international debt would hit almost 100pc of GDP. Bear in mind the UK has yet to factor in pensions and bank liabilities into Government figures. Once these numbers become part of the accounts, its level of debt is similar to our own.
Moreover, for some unknown reason nobody appears to care that the UK or the US governments’ debts are unlikely to be repaid. However, if they ever do start caring, we will observe interesting but catastrophic times.
In the case of Italy, for example, the debt was there and had been there for years, but nobody had ever bothered. Then suddenly, the markets decided to care, and we all know what happened.
Maybe the chickens are coming home to roost in the UK for their financially and economically illiterate Government. For the subjects of her Majesties Government one hopes not
The sad part is that the people must suffer and the only beneficiaries of these difficulties are the International banking system. You will see and observe that in each country their aim is to dismantle the welfare state leaving the citizens at the mercy of international business
About Old BoyLove the past and the future but live in the present
Posted on September 30, 2012, in Government and tagged Banks, Bond credit rating, Credit rating, Fitch, Fitch Group, Government debt, Gross domestic product, Ireland, UK, United States. Bookmark the permalink. Leave a comment.