THE GUARDIAN: Moody’s say downgrade from ‘stable’ was driven by political instability and high inflation
The UK’s economic outlook has been downgraded from “stable” to “negative” by the rating agency Moody’s because of political instability and high inflation.
Moody’s said the change in outlook was driven by “heightened unpredictability in policymaking amid weaker growth prospects and high inflation” and “risks to the UK’s debt affordability from likely higher borrowing and risk of a sustained weakening in policy credibility”.
Rating agencies rate a country on the strength of its economy and provide governments with a score based on the likelihood that they will be able to pay back debt.
The rating affects how much it costs governments to borrow money in the international financial markets. According to the agency, an outlook period “typically lasts 12 to 18 months”. » | PA Media | Saturday, October 22, 2022
Good God! Brexit is proving to be a rip-roaring success, isn’t it? Britannia is sinking faster than many might have imagined. To anyone with a modicum of common sense and even a basic understanding of economics should have been able to foresee the dire outcome that Brexit would bring with it.
I am almost certain that there were many pro-Brexit voters who thought that by exiting the European Union, we would be able to rebuild El Dorado! The sad reality is that we are quickly turning this once proud nation into a Banana Republic (without even being able to grow the bananas)!
The trouble is that the many are going to have to suffer along with the few that brought Brexshit about. That means to say, the Remainers and the unsuspecting Brexiteers who believed the crap that was preached to them by the few at the top who would be benefitting from leaving our friends in Europe.
I suggest that we prepare ourselves to eat humble pie, ask for forgiveness for causing our European brothers and sisters so much trouble and ask them to accept us back into the fold without all those ridiculous opt-outs. Oh, and while we’re at it, we could ditch the pound sterling (which is fast turning into a junk currency) and adopt the euro.
If you think that I exaggerate about the pound turning into a junk currency, just take a look at this website providing historic currency conversion rates. This is proof positive that the currency we could once upon a time be so proud of is becoming ever more worthless. Ditch the bitch! This is surely not the end of its decline in value. Historically, the pound has halved in value approximately every ten years since the end of World War I. So, based on that harsh historical reality, in ten years (or perhaps even less now), the pound could be halved in value yet again. Remember this: In 1963 (as an example), there were approximately CHF 12.24 to the pound and US$ 2.80 . And now, the Swiss franc is worth approximately 87p, or put another way, a pound will buy you approximately CHF 1.27 and US$ 1.30 ! I wouldn't characterise such a currency as anything but weak. It has been weakening for years; Brexit has hastened its decline in value. – © Mark Alexander
