Saturday, August 06, 2011

USA loses its AAA from S& P, Britain must cut further NOW!

There is a first rate analysis on the events of last week affecting both the USA and the EU from John Redwood this morning, linked here. My comment to that, re-inforcing the point I made, yesterday morning, about the steps Britain must now take to protect itself, read here, was the following:

Posted August 6, 2011 at 7:05 am 
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An important contribution at a critical moment. The poster makes this point in which we must surely all join "I would be happier if the UK was taking stronger action to control the government overhead and less desirable spending".
Now that the US has been stripped of its triple A status with Standard & Poors the moment to impress this obvious fact on the Coaltion Government is now, this very weekend.
Vince Cable last evening on TV was totally unconvicing in suggesting the Government was firmly in contol, while all more senior ministers, were vacationing, after fifteen months of idleness and missed opportunities.
This post is the first glimmer of hope for Britain, that at least somewhere on the government benches there is a grasp of what is necessary for Britain!

Britain, itself, could soon be placed in a similar position as the Obama Administration and the EU, in attacking the rating agencies themselves for applying the logical analysis and decisions they exist to make, read here.

Watching the events of yesterday, particularly the news conferences run by Olli Rehn, the monetary affairs Commissioner, and reading between the lines of the Italian ministerial statements, all as available from this blog set out below, it is crystal clear that unless Britain acts on its own, as entitled to do by having maintaioned its distance from the Euro currency, we too will be dragged into this swirling crisis. The opposition should be brought on side and the heavy guns of the Labour Party be brought to bear on the wild rantings of Ed Balls the Shadow Chancellor of the Exchequer!

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