World 6 August 2011 Paul Krugman reacts to the S&P downgrade of the United States The Nobel-prize-winning economist castigates the credit rating agency on his blog. Sign up for our weekly email * Print HTML Writing on his New York Times blog last last night, Nobel laureate, Obama critic, Princeton economist and card-carrying Keynesian Paul Krugman reacted angrily to the controversial decision by Standard and Poor's (S&P) to downgrade the United States' top-notch triple-A credit rating for the first time in history. Professor Krugman wrote: On one hand, there is a case to be made that the madness of the right has made America a fundamentally unsound nation. And yes, it is the madness of the right: if not for the extremism of anti-tax Republicans, we would have no trouble reaching an agreement that would ensure long-run solvency. On the other hand, it's hard to think of anyone less qualified to pass judgment on America than the rating agencies. The people who rated subprime-backed securities are now declaring that they are the judges of fiscal policy? Really? Just to make it perfect, it turns out that S&P got the math wrong by $2 trillion, and after much discussion conceded the point -- then went ahead with the downgrade. . . . In short, S&P is just making stuff up -- and after the mortgage debacle, they really don't have that right. You can read the full blogpost here. › Sins of the Father Subscribe from just £1 per issue More Related articles Douglas Carswell leaves Ukip to become independent MP Labour is a pioneer in fighting sexism. That doesn't mean there's no sexism in Labour Why isn't Labour putting forward Corbynite candidates?