Forget the PIGS, UK Fucked: Fitch warning

oh oh,

bye bye GBP :p

BBC News - Pound falls on Fitch warning on UK deficit 'challenge'

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The pound has fallen after a credit rating agency warned that the UK faced a "formidable" challenge to bring down its budget deficit.

The credit rating agency said the pace of deficit reduction needed to be quicker than that announced by the former Labour government in April.

Fitch did not revise the UK's credit rating - AAA - but said the UK had the fastest rising debt ratios of any of the highest rated economies

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France can rescue you if you choose to, but you will need to be nice with us

:frog:

I went short at about 7 am.
:)

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Originally Posted by Butterfly

bye bye GBP

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about time.

Hilarious that the French are waving the white flag again.:mid:

(Does Papillion have to get everything wrong everytime?)

dammit I was hoping to get more baht for my pound

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Originally Posted by Butterfly

but you will need to be nice with us

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When PIGS fly. :)

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Originally Posted by Norton

When PIGS fly

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oh they will be flying soon, believe me :)

Yeah, the quid's had a shit day.
I've seen worse.

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Originally Posted by Butterfly

France can rescue you if you choose to

:frog:

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Well theres a first time for everything.

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Originally Posted by astasinim

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Originally Posted by Butterfly

France can rescue you if you choose to

:frog:

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Well theres a first time for everything.

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Yep, they use all the money they saved on ammunition during the second world war.:rofl:

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Originally Posted by the dogcatcher

Yeah, the quid's had a shit day.

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This too shall pass. Wasn't long ago when TD folks were predicting the complete collapse of the USD.

Things change.

To GBP

https://teakdoor.com/images/smilies1/You_Rock_Emoticon.gif

To Euro

https://teakdoor.com/images/smilies1/You_Rock_Emoticon.gif

Might be worth mentioning that the mighty French Euro is up on the day, but still down on the week, month year... With the problems in Spain, Portugal and Ireland the French (well the German's) will be too busy 'helping' their own currency to worry about any other...

XE.com - Free Currency Charts (GBP/EUR)

I'm watching the commons debate live at the moment.

The chancellor is saying the UK has the highest youth unemployment rate in Europe and the national debt has doubled and is set to double again. He's also explaining national spending cuts.

What I don't understand is why they won't cut the amount they give on foreign aid. Surely if your economy is in such a bad state the first thing you should look at cutting is foreign aid.

A lot of foreign aid has strings attached.
ie "We'll give you X amount for medical equipment, but, you've got to buy x plus x from this company to get it.
Foreign aid can be good for exports.

I can see where that works out well but surely there are parts of the foreign aid budget where this doesn't apply. It's just money going into a black hole.

From what I can see they have no intention of cutting any foreign aid at all. They appear to prefer increasing taxes and cutting jobs to trimming money they throw away to other countries.

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Originally Posted by Butterfly

oh oh,

bye bye GBP :p

France can rescue you if you choose to, but you will need to be nice with us

:frog:

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I'd rather let a pack of soi dogs gnaw on my nuts than take any help from a sheepburningrunawayscreamingwithyourhandsintheair crying like a baby Frog!!! :england:

Not all getting cuts. Budget has increases in Health Care. Health care constitutes a big portion of the budget. Seems to me without cuts in health will be damn hard to get the deficit down.

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Originally Posted by Larn

I can see where that works out well but surely there are parts of the foreign aid budget where this doesn't apply. It's just money going into a black hole.

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That is correct. Some is usefully spent - eg on bribes to buy British made defence equipment. A lot is wasted. Eg DFID paying the Indonesian government the money to pay the salary of an American guy (mate of mine) acting as adviser to their Finance Minister.

I am not concerned about ratings agency changes. Ratings agencies are nitwits. What is more interesting is that British people have had a pretty good crisis, particularly if they are borrowers. They've saved money on their mortgages, house prices have gone up. No welfare benefits have been hit hard.

Now it is time to take the medicine, and they all know thats coming, but nobody actually thinks it is going to hurt them personally.

(but it will)

they won't be able to cut those budget without making a lot of people angry,

this is just the beginning, think Greece protest, because this is how it's going to end

they are going to run major deficit, which will crash the GBP further, and put the ratings under watch

once it happened, it will be panic time

There will be no panic. The pound has been steadily downgraded for months and months; quite well managed. It probably hasn't bottomed, but it's steady, expected and relatively controlled.

You wanna see panic: watch the Euro over the coming months, a zone where the problems have been hidden, but not well...

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Originally Posted by Larn

I'm watching the commons debate live at the moment.

The chancellor is saying the UK has the highest youth unemployment rate in Europe and the national debt has doubled and is set to double again. He's also explaining national spending cuts.

What I don't understand is why they won't cut the amount they give on foreign aid. Surely if your economy is in such a bad state the first thing you should look at cutting is foreign aid.

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Alot of foreign aid is given in things not money.
the things are usually bought in uk at uk prices hence helping to prop up uk economy.
shame is if these things were local product they would be half the money hence helping the poor country even more by stimulating there economy and also providing more things.
but that isn't what aid ia about.

I've just called up GBPUSD, it only made S1. No big deal.

if We Can Pay Back 1 Million A Day ,,,it Will Only Take About 2000 Years.
TO RID OURSELVES OF THE DEBT

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Originally Posted by billy the kid

if We Can Pay Back 1 Million A Day ,,,it Will Only Take About 2000 Years.
TO RID OURSELVES OF THE DEBT

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That's ok. Easy terms.

I take it these are the same credit rating agencies that gave AAA ratings to bundles of packaged sub-prime mortgages which caused the credit crunch that sparked this entire economic crisis?

It seems their ratings/opinions arent worth jack shit.