Portugal is on notice for another downgrade. But the real interest is in the reasons why. It’s not because of their over all debt. Its because of what Moody’s calls “its small and slow growing economy.” It’s the slow growing that should catch the eye.
Moody’s are signalling that they do not believe in the optimistic growth projections of the central banks and others. What’s this to us? Well what are the UK’s prospects for growth? We have no prospect for growth in energy. little in industry. Finance has been the basket into which we put all our eggs and now they are broken and scrambled.
The UK’s first downgrade will not just be because of large debts nor a hung parliament but also because we cannot point to any prospect of good growth.
The bankers will corner whoever gets into power and tell them ONLY WE can save you from stagnation and downgrade. Thus, you WILL NOT regulate us. You WILL not curb our bonuses. You WILL keep whatever fiscal policy suits US at the BANKs. you WILL take whatever measures are necessary to curb any unruly dissent from coming here.
No comments yet.