Originally posted by BrilloPad
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Just you wait. It'll make Black Monday seem like a small correction. One day in the not too distant future the next Tory PM will announce the UK cannot afford the interest rate on bonds and QE's all the debt. -
Thanks to QE most of the debt is issued and bought by the government.Leave a comment:
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Britain's credit rating could be slashed after the general election bungle
Not a good sign. International lenders seeking more interest on their loans to the UK's mounting debt mountain could by the straw that breaks the camels back.
Sell your GBP assets now!
source: S&P and Moody's warn UK credit rating could be cut over general election - Business InsiderLONDON — Ratings agency Standard and Poor's has warned that the UK's creditworthiness faces a downgrade following the shock failure of the Conservative Party to win a majority in Thursday's general election, while fellow agency Moody's said it is closely monitoring the situation in the UK.
Both Moody's and Standard & Poor's issued statements on Friday morning after the election, and while S&P was more downbeat, neither agency's words are particularly reassuring for the UK.
Theresa May's Conservatives won the most seats but failed to secure a majority, and look likely to enter an informal coalition with the Northern Irish Democratic Unionist Party. This will give May a majority of just a couple of seats. That could make passing legislation incredibly difficult, especially when it comes to Brexit.
As it stands, the UK holds the second highest rating with both agencies — Aa1 from Moody's, and AA+ from S&P.
Britain lost its AAA rating with S&P almost immediately after the Brexit referendum last year. It has held an Aa1 rating with Moody's since 2013 when it was downgraded from AAA due to sluggish growth prospects and fiscal challenges.
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