Thursday, 21 May 2009

UK placed on negative credit watch, look to election

Standard & Poors have placed the UK economy on Credit Watch negative.
This means that, if things continue as they are, we are likely to lose our Sovereign AAA rating.
They confirm the problem is compounded by "historically high" debt levels.

They state: "the parties intentions will likely remain unclear until the next administration is formed after the general election, due by mid-2010",

that we will lose the rating:

"if we conclude that, following the election, the next government's fiscal consolidation plans are unlikely to put the U.K. debt burden on a secure downward trajectory" but that "Conversely, the outlook could be revised back to stable if comprehensive measures are implemented to place the public finances on a sustainable footing"

The Worlds markets are adding their voice to the voice of the majority of the British people. If our credit rating drops, interest rates will be forced up and a recovery may be well nigh impossible. Only by cutting public debt, and setting out clear plans immediately can we convince the markets that we are fit for their trust.

Gordon Brown is not just abusing the trust of the Electorate, he is abusing the trust of the World's markets at our expense.

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