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UK's AAA credit rating confirmed by S&P

Frolicking Dinosaurs

Frolicking Dinosaurs

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Maybe the US could learn better ways of handling the financial crisis from the UK.

S&P said that despite sluggish growth, the UK's "diversified" economy and "flexible" fiscal and monetary policy would enable it to weather a slowdown.

The news will be welcomed by Chancellor George Osborne, who on Monday told the Conservative Party conference that he would not change economic course.

S&P said its AAA rating could be re-evaluated if the government weakened its resolve to reduce public debt.
An AAA rating is the highest possible. Any downgrade would raise Britain's borrowing costs, and also provide ammunition for the coalition government's opponents.

In an announcement, S&P said it had "affirmed its AAA long-term and A-1+ short-term sovereign credit ratings on the UK. The outlook remains stable."

It said the decision reflected the country's "wealthy and diversified economy, fiscal and monetary policy flexibility, and relatively adaptable product and labour markets".

S&P added: "In addition, we view the UK as having deep capital markets with strong demand for long-dated gilts by domestic institutional investors.

"There is also demand from non-residents for sterling-denominated UK government debt, which provides some diversification to the UK's investor base."
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BBC News - UK's AAA credit rating confirmed by S&P
 
They did cut some social spending - they also cut military spending and raised taxes.
 
washunut said:
what did they do?
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We have embarked on a package of cuts to those parts of our society that normally get most affected, in times of hardship. The 'Public sector workers' such as, Teachers-Police- Health workers. In addition to this, there's an overhall of the 'benefits system' such as, Incapacity-Disability-Housing benefit.
They have made some drastic Military cutbacks such as, scrapping various Naval vessels-the Harrier Jump jets- and personnel from all three arms of the British forces.

What has yet to take affect, is the net result of the above, then would perhaps be the most appropriate time to comment.....

Paul
 
Harry Guerrilla said:
They cut social spending, even with "the people" didn't want them to.
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They also didn't spend absurd portions of their GDP on the military, so they could cut social spending without having to gut it entirely.
 
China isn't cutting their military :inandout:
 
Deuce said:
They also didn't spend absurd portions of their GDP on the military, so they could cut social spending without having to gut it entirely.
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The point is that they did it, whether or not, democracy wanted it to happen.
It's something our politicians should try to emulate, "the people" aren't always right.
 
washunut said:
what did they do?
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Pretty much nothing. They have been in power for about a year and a half and they are still at record deficits and record monthly lending and their unemployment is rising. Their whole "austerity" plans have either not hit yet, or have been watered down. So far the Cameron government is much about talk but not much action. S&P has seriously dropped the ball again.. the UK should be downgrade and not just one notch.
 
gunner said:
We have embarked on a package of cuts to those parts of our society that normally get most affected, in times of hardship. The 'Public sector workers' such as, Teachers-Police- Health workers. In addition to this, there's an overhall of the 'benefits system' such as, Incapacity-Disability-Housing benefit.
They have made some drastic Military cutbacks such as, scrapping various Naval vessels-the Harrier Jump jets- and personnel from all three arms of the British forces.

What has yet to take affect, is the net result of the above, then would perhaps be the most appropriate time to comment.....

Paul
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Exactly.. "yet to take effect"... over 1 and a half years after taking power...

And dont forget their great "savings" on defence... the UK will have no aircraft carrier for a few years, and then when they finally do get the new aircraft carriers .. no planes to fly off them. Oh and they are still spending billions on nuclear defence...
 
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