The US rating agency said the US, the UK, Germany, France, and Spain are walking a tightrope as they try to bring public finances under control without nipping recovery in the bud. It warned of "substantial execution risk" in withdrawal of stimulus.
"Growth alone will not resolve an increasingly complicated debt equation. Preserving debt affordability at levels consistent with AAA ratings will invariably require fiscal adjustments of a magnitude that, in some cases, will test social cohesion," said Pierre Cailleteau, the chief author.
"We are not talking about revolution, but the severity of the crisis will force governments to make painful choices that expose weaknesses in society," he said.
If countries tighten too soon, they risk stifling recovery and making maters worse by eroding tax revenues: yet waiting too is "no less risky" as it would test market patience. "At the current elevated debt levels, a rise in the government's cost of funding can very quickly render debt much less affordable."
Moody's said Britain has been slower than Spain to "rise to the challenge" and may be at greater risk of smashing through buffers of AAA creditiblity if rates suddenly rise. Spain made errors at the outset of the crisis but has since become a model pupil, pledging to cut the budget deficit from 11.4pc of GDP to 3pc by 2013.
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Explain Why You Sold Britain's Gold, Gordon Brown Told
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Wow...No Comments on the riots coming? That's weird...Where's all my "Fellow Tin Foil Hat People" at?
ReplyDeleteAlthough it will take a HEEEEELLLLLLLL of alot to get the American to get his fat ass off the coach...Put down the Doritos and Mountain Dew...Get on his old person scooter...Get his mispelled "Obama is da anti-christ" sign out from the garage that he put away last November...Scooter downtown and wave at cars so they'll honk...Get overly hot and yell obsenities at people defending Obama...Then go home before "24" starts.
"We are not talking about revolution, but the severity of the crisis will force governments to make painful choices that expose weaknesses in society," he said.
ReplyDeleteJust what are we talking about?
The only winning move is to NOT play the game!
Recently I read that 200,000 people just protested the wars in Iraq and Afghanistan. Did you see that on the news?
ReplyDeleteThe revolution will not be televised.
I hear April 15th is gonna be a big assembly in Washington , DC.
ReplyDeleteAnybody else hear this?
I'm for whatever goes down, as long as its kept in DC.
ReplyDelete234, A sinfull nation must be punished! It is coming wihin the next 30 days.
ReplyDeleteSee if you can detect the bullsh*t here: "five biggest AAA-rated states are all at risk of soaring debt costs"
ReplyDeleteHow do states with "soaring debt costs" earn a AAA rating? Here is why: the whole dang system is a fabrication of lies. Rating agencies profited by heavily discounting, or ignoring, obvious risk, allowing false signals to amplify throughout the economic investment spectrum.
Are Humans Smarter Than Yeast?
They won't revolt until they can't watch TV and stuff their guts with junk food.
ReplyDeleteI work with a group of women who think communism would be good because then they will get "free" health care. They want the government to tell them how to spend their money. They think like mushrooms.
Glenn Beck says that you can do it through peaceful revolution. He says going to the polls and voting is the way to revolt. He uses Geoge Washington as an example but George did not use peaceful revolution he took up arms and fought against exactly what we are facing today in our government.
The politicians are to cocky about passing this health care bill. I think they are up to something. Maybe they want people to start rioting in the streets before the elections begin so that Obama can declare martial law and no elections can happen. And if martial law carries into the next presidential election Obama can stay president as long as it is in effect.