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Dagong Downgrades The Uk From Aa- To A+, Outlook "negative"

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http://www.zerohedge.com/article/dagong-downgrades-uk-aa-outlook-negative

With everyone trading the GBP in the overnight session eagerly awaiting the leaked Moody's report that the rating agency, which has yet to be at least 2 years behind the curve, is set to downgrade "more than a dozen British financial institutions to reflect the eventual withdrawal of Government support for the banking industry", China has gone and upstaged the beating around the bush poser by downgrading the UK outright from AA- to A+, with a negative outlook. The premise: stagflation and deteriorating "debt repayment capability." Poor fools: they have yet to meet the full debt repayment capability of 20 Primary Dealers.

From Xinhua:

China's first domestic rating agency, Dagong Global Credit Rating Co. Ltd., on Tuesday downgraded the local and foreign currency long-term sovereign credit rating of the United Kingdom by one level to A+ from previous AA- with "negative" outlook.

The Chinese rating agency said the downgrade reflected the UK's deteriorating debt repayment capability.

First it was the UK banks now one rating agency has cut the UK's sovereign credit rating.

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Right time to bring back conscription and launch ALL 192 nuclear missiles at China for daring to down grade UK banks to AA-

:lol:

If they are right, the future is worse than any of us predicted, including the most pessimists:

The rating agency said the British government's move to revive its economy would not substantially reverse the trend of increasing the government's fiscal deficit and debt burden in the long term.

Dagong predicted the growth rate of UK economy to be between 1.3 percent and 1.5 percent in the next two years. And its budget deficit would exceed the targeted 7.9 percent to 9 percent.

We all knew that the government debt would keep increasing throughout this parliament, but at a reduced rate, with a reducing annual budget deficit. I don't remember any of us forecasting an increasing annual budget deficit.

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If they are right, the future is worse than any of us predicted, including the most pessimists:

We all knew that the government debt would keep increasing throughout this parliament, but at a reduced rate, with a reducing annual budget deficit. I don't remember any of us forecasting an increasing annual budget deficit.

Just to add - or voting for it in the general election.

The way the the ConDems are splashing aid and bailout money etc all round etc possibly the Chinese rating agency might even be giving the UK an optimistic rating.

Edited by billybong

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HAHAHAHAHAHA *mad laughing* - prevent that, British government!

I welcome this greatly - short sharp shock, please!

Yep. Better than this dragging on slow motion torture! I'm really fecking "Tired of Waiting" for all these corrections! Starting from the economy, and then the social and values correction. Enough "free"-lunch splashing, actually paid by tax-payers, present and future!

We do need a reality check. Perhaps then people will understand, and snap out of all these still prevalent collective delusions.

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The reasoning behind this downgrade is that UK banks are not deemed to be well enough capitalised (surprise, surprise) and it is not thought the government and the taxpayers have the capacity to stand behind them as things stand.

Of course, what those rating agency idiots don't understand is the iron will of the British public to willingly accept a massive devaluation of their currency and savings in order to bail out their beloved banks.

Although, considering this I find it strange that gold hit a nominal all time high in sterling on the news. :o

Edited by General Congreve

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We do need a reality check. Perhaps then people will understand, and snap out of all these still prevalent collective delusions.

i don't know any more. You know how rubbish people are at handling the truth. And what are we going to do? Suddenly stop buying crap and start making things for a living? Don't make me laugh. Besides we've forgotten how to Huhne has just legally bound us to halving our carbon emissions, half compared to a time where we produce nothing, we're supposed to get back to manufacturing while halving carbon emissions relative to a level where we're just sitting on our backsides. A few days later a laughing Chinaman says -

The Chinese rating agency said the downgrade reflected the UK's deteriorating debt repayment capability.

stating the bleeding obvious, we have no capacity to repay, the only thing we have been any good at over the last decade is spending other peoples money, Chinas money. I suspect Obama is here to tell Cameron the indebted nations are going to have to work something special to keep from war with China, and keep a united front too. We're totally unable to repay them and we're totally unwilling to accept our debt slave status. That's some impasse.

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By not marching on London with rope you voted for it alright.

I disagree with that. I wasn't talking about my own vote but that all the parties promised the deficit would be cut so nobody in the country voted for an increase in the deficit as it wasn't in any manifesto, not even the Labour one.

What the consequences of all the broken promises will be still remains to be seen - for all concerned.

Edited by billybong

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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