Britain’s Credit Rating Dowgraded By People Who Rated Toxic Debt Bonds

The downgrading of Britain’s credit rating, which will have little effect on us ordunary punters, is interesting only in that it has been done by a credit ratings agency closely which gave triple-A ratings to worthless toxic shite bonds (aka Collateralised Debt Obligations) sold by the banks to a lot of decent people who were persuaded they were putting their money in sound investments.

‘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 agency pointed to “continuing weakness in the UK’s medium-term growth outlook, with a period of sluggish growth which [it] now expects will extend into the second half of the decade”.

Thus these ‘rating agencies’ which were created by the banks for the benefit of the banks. played a major role in the crash of 2008 are now the same agencies (just three dominate the world market) are now credit-rating countries and impacting upon the lives of many people.

While dropping from Aaa to Aa1 will have little immediate effect because few nations still retain an Aaa rating, and at Aa1 we still only pay 3.5% interest on our £trillion and a half debt, when the rot sets in seriously as it has in Greece, Italy, Spain and other Eurozone nations we are looking at paying between six and seven per cent on that £trillion and a half.

Any idea what six % of a trillion pounds is? No?

It is £60 billion a year. Or £1000 for every adult and child in the nation. Or about 5% of GDP. Or a hell of a lot more austerity measures than left wing politicians and media dickheads have been complaining about over the past few years.

First we need to get that debt down. If you don’t believe me, go to Greece, Spain or Portugal and ask how life is right now. Or go to Italy and you can join in the celebrations if Silvio Berlusconi is re elected on a platorm of standing up to the Gauleiters of Brussels. Then we need to dump politicians who are in the pockets of the New World Order bankers (all three major parties in the UK) and elect some leaders who are apable of thinking for themselves.

Shame and humility are not the greatest gifts of bankers or politicians, gobsmacking levels of arrogance are more their line. But their ranks a numbered in thousands, there are sixty million of us. Time to show them who is boss.

Update:

So Why Don’t The Bank Of England Just Do The Sensible Thing?

The Bank Of England is not what you think it is. Most people think Th Central Banks are owned by the nation, in fact I have seen many vitriolic argements about the US Federal Exchange in which well informed people of not particular political persuasion tried to explain that The Fed is owned by private inteests and thus does not have to do what is in the best interests of American citizens and US Liberals, the most fanatical members of the Obamessiah cult who insist their wondrous leader controls The Fed and thus everything it does is in the best interests of the American people and anyone who disagrees is a racist and a young earth creationist right wing nut job. Obamessiah cultists are not big on sanity.

The same goes for The bank of England although British lefties usually manage to be a teeny bit more rational in their responses to the truth.

We The Punters do not own the Bank of England, neither does The Queen nor the Government; it is owned by 1000 share holders whose identities we are not allowed to know (The Boggart Blog bookie is not taking bets on some of them being named Rothschild). So it doesn’t really matter because the 1,000 will decide what happens to the UK’s monetary policy anyway.

“In 1977, the Bank set up a wholly owned subsidiary called Bank of England Nominees Limited, (BOEN), a private limited company, with 2 of its 100 £1 shares issued. According to its Memorandum & Articles of Association, its objectives are:- “To act as Nominee or agent or attorney either solely or jointly with others, for any person or persons, partnership, company, corporation, government, state, organisation, sovereign, province, authority, or public body, or any group or association of them….”

Bank of England Nominees Limited was granted an exemption by Edmund Dell, Secretary of State for Trade, from the disclosure requirements under Section 27(9) of the Companies Act 1976 , because, “it was considered undesirable that the disclosure requirements should apply to certain categories of shareholders.” The Bank of England is also protected by its Royal Charter status, and the Official Secrets Act.”

OK, so now you know why the Bank Of England does not act in the interests of the people. Makes a lot of other things crystal clear doesn’t it.

5 thoughts on “Britain’s Credit Rating Dowgraded By People Who Rated Toxic Debt Bonds

  1. “First we need to get that debt down.”

    Still wrong, Ian. First we need to get production working, so we can make money, then we can get the debt down.

    I keep pointing people towards Paul Krugman’s book, “End This Depression Now”, but like Gideon Osborne, they all know better than a Nobel Prize winning economist.

    Jack Dee just tweeted “Moodys now downgraded to Arseholes”.

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    1. Don’t be silly. The Nobel prizes are political rewards and Krugman, who does not understand Keynesean economics because the moron thinks recovery is about borrowing and printing money to fund Labour style insane spending, is a cupid stunt.

      It was listening to idiots like Krugman that got the world into this mess. We have to stop the wars, reduce benefits (yes even mine) and stop shovelling money into black hole projects like the European Federal Superstate.

      Osborne is wrong, his plans will not reduce the deficit enough but Bollocks is wronger … and he’s a fat bastard.

      If you can bring me anybody who does not understand that we cannot spend more than we earn indefinitely I wil show you either a Nobel Prize Winning Economist or a Labour Party finance spokesperson.

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      1. BTW Krugman’s advcice back in 2008 was to cut interest rates to stimulate lending. So the governments, which were all running structural deficits (except for Germany) started lending out silly money at 0.5%. Bankers may be greedy and socipathic but they aren’t stupid. They saw that governments needed to borrow money (i.e. sell bonds) every month to cover the structural overspend. So they borrowed the government’s money at 0.5% and loaned it straight back by buying bonds at 3%. That’s why in spite of all the money poured into western economies (approx 10% of GDP in UK and USA, there has been negligable growth, in real terms contraction because inflation has been running at a higher rate.

        Fucking brilliant economist that Krugman eh? We’d be better off with Frank Gallagher or Rab C Nesbit advising the government on financial affairs.

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      2. I still think you are mistaken, Ian, and that did sound a teensy bit ranty, you know…

        I’m pissed. Off to hear your benefits have been cut. I have had none for years, as my beloved wife, [insert string of superlatives and then double them] earns a lot, so I don’t get any.

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      3. Yes, it was Ranty as I intended because I get fed up of explaining that bad as the coalition were Labour were many many times worse on the economy and would make all the same mistakes again if they were in power now. Mr. Bollocks is about as economically literate at my two year old grandson, i.e. slightly smarter than Paul Krugman. Do you know the true level of American debt including the sovereign debts of the 50 states? $41trillion. The $16 trillion figure they bandy about is only the national debt, i.e. the amount of government bonds American citizens hold.

        Forget Labour, produce a Beppe Grillo out of a hat or vote UKIP (although there are signs they are being corrupted already). The traditional political parties are corrupt, rotten to the core, dysfunctional and in The New World Order’s pocket.

        I did not say my benefits had been cut, I said they ought to be. I don’t need the winter fuel allowance and a couple of other things I have to get if I want to keep my disabled parking badge (which I’m not giving up for anyone).

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