View all newsletters
Sign up to our newsletters

Support 110 years of independent journalism.

  1. Business
25 February 2013updated 22 Oct 2020 3:55pm

Moody’s downgrade might be symbolic – but it’s still correct

What does it mean, if anything?

By Stephen Hill

Moody’s downgrade of Britain’s credit rating, from AAA to AA1, is largely symbolic, akin to a sticking plaster falling off a major unhealed gash. It will have no effect on the cost of borrowing, so what does it mean, if anything?

First, it was an anomaly that America and France had been downgraded months ago, and that little bankrupt Britain could sail on merrily, as if the only boat in the race without a leak, was plainly ludicrous.

Second, the fact is that there is a major hole below the waterline in the nation’s finances that isn’t being fixed. But compare 600,000 new jobs being created in the last year by the private sector, of which half are full-time: either the figures are wrong, or thousands of jobs have been lost at the same time, by bankrupt retailers and lost manufacturing output.

Third, sterling was on the slide in the FX markets before Moody’s even blew their faint-hearted whistle. This was after Mervyn King of the BoE voted for more QE, despite the fact that he is already sitting atop one-third of the national debt, and could easily topple off this pile of irredeemable IOUs.

Fourth, the national debt, which was meant to be coming down, is now going back up again. Osborne’s cuts were too little, and now are seen to be too late. But the Cameroons are such a lot of new-drippy Old Etonians that they are increasingly seen as a generation that hasn’t got the balls to pick up a sharp axe and really wield it. No pain, no gain.

Select and enter your email address Your weekly guide to the best writing on ideas, politics, books and culture every Saturday. The best way to sign up for The Saturday Read is via saturdayread.substack.com The New Statesman's quick and essential guide to the news and politics of the day. The best way to sign up for Morning Call is via morningcall.substack.com Our Thursday ideas newsletter, delving into philosophy, criticism, and intellectual history. The best way to sign up for The Salvo is via thesalvo.substack.com Stay up to date with NS events, subscription offers & updates. Weekly analysis of the shift to a new economy from the New Statesman's Spotlight on Policy team. The best way to sign up for The Green Transition is via spotlightonpolicy.substack.com
  • Administration / Office
  • Arts and Culture
  • Board Member
  • Business / Corporate Services
  • Client / Customer Services
  • Communications
  • Construction, Works, Engineering
  • Education, Curriculum and Teaching
  • Environment, Conservation and NRM
  • Facility / Grounds Management and Maintenance
  • Finance Management
  • Health - Medical and Nursing Management
  • HR, Training and Organisational Development
  • Information and Communications Technology
  • Information Services, Statistics, Records, Archives
  • Infrastructure Management - Transport, Utilities
  • Legal Officers and Practitioners
  • Librarians and Library Management
  • Management
  • Marketing
  • OH&S, Risk Management
  • Operations Management
  • Planning, Policy, Strategy
  • Printing, Design, Publishing, Web
  • Projects, Programs and Advisors
  • Property, Assets and Fleet Management
  • Public Relations and Media
  • Purchasing and Procurement
  • Quality Management
  • Science and Technical Research and Development
  • Security and Law Enforcement
  • Service Delivery
  • Sport and Recreation
  • Travel, Accommodation, Tourism
  • Wellbeing, Community / Social Services
Visit our privacy Policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
THANK YOU

As a result of reasons one to four, number five is that the economy is going nowhere fast except down a big, black hole called the IMF. Sort it Osborne, or quit! The answer is simple: slash government expenditure and taxation on March 20, not in some mealy-mouthed way as you are currently posturing, but in a determined and dramatic way.

Slash the Gordian knot of ever-advancing EU-driven socialist-bureaucracy! Cut the chain that is holding back the UK private sector, the people who have had proper jobs all their lives! Unlike you miserable lot in government, who have never had a proper productive job at all.

After all, the only man in Britain who is going to say you are wrong to do such a thing, is the utterly stupid, pathetic and ludicrous Ed Balls. And he is the one who assiduously dug the nation over many years into this great hole in the first place! But then, I suppose, he has never had a proper job either – a kindred spirit, perhaps?

This first appeared on Spear’s.

Content from our partners
Development finance reform: the key to climate action
Individually rare, collectively common – how do we transform the lives of people with rare diseases?
Future proofing the NHS

Select and enter your email address Your weekly guide to the best writing on ideas, politics, books and culture every Saturday. The best way to sign up for The Saturday Read is via saturdayread.substack.com The New Statesman's quick and essential guide to the news and politics of the day. The best way to sign up for Morning Call is via morningcall.substack.com Our Thursday ideas newsletter, delving into philosophy, criticism, and intellectual history. The best way to sign up for The Salvo is via thesalvo.substack.com Stay up to date with NS events, subscription offers & updates. Weekly analysis of the shift to a new economy from the New Statesman's Spotlight on Policy team. The best way to sign up for The Green Transition is via spotlightonpolicy.substack.com
  • Administration / Office
  • Arts and Culture
  • Board Member
  • Business / Corporate Services
  • Client / Customer Services
  • Communications
  • Construction, Works, Engineering
  • Education, Curriculum and Teaching
  • Environment, Conservation and NRM
  • Facility / Grounds Management and Maintenance
  • Finance Management
  • Health - Medical and Nursing Management
  • HR, Training and Organisational Development
  • Information and Communications Technology
  • Information Services, Statistics, Records, Archives
  • Infrastructure Management - Transport, Utilities
  • Legal Officers and Practitioners
  • Librarians and Library Management
  • Management
  • Marketing
  • OH&S, Risk Management
  • Operations Management
  • Planning, Policy, Strategy
  • Printing, Design, Publishing, Web
  • Projects, Programs and Advisors
  • Property, Assets and Fleet Management
  • Public Relations and Media
  • Purchasing and Procurement
  • Quality Management
  • Science and Technical Research and Development
  • Security and Law Enforcement
  • Service Delivery
  • Sport and Recreation
  • Travel, Accommodation, Tourism
  • Wellbeing, Community / Social Services
Visit our privacy Policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
THANK YOU