Saturday, 23 February 2013
Britain to loose its prestigious triple a credit rating, austerity has failed
As we learn today that Britain is to loose its prestigious triple A credit rating this can only be reported as a humiliating turn of events for the chancellor George Osborne. Osborne banked his whole economic policy on maintaining this triple a credit rating now it looks to be crumbling under his nose surely it leaves the Tories and their economic plans in tatters and the coalition in a huge crisis. Moody's credit rating Cut 'shows UK economic policy failure' On Friday, Moody's became the first agency to cut the UK from its highest AAA rating to Aa1. In announcing the ratings cut, Moody's cited the "challenges that subdued medium-term growth prospects pose to the government's fiscal consolidation programme, which will now extend well into the next parliament". It added that the UK's huge debts were unlikely to reverse until 2016. This is a huge condemnation of the Tories economic policy for ministers like Danny Alexander to shrug it off like credit rating agencies do not matter is laughable as it was only last year they were all talking up how proud they were to still have their credit rating at a maximum status. It seems that just like the polls you support them when they support your policy and reject them as nonsense when they appear to be speaking against you. But this could be hugely serious for Britain from a capitalist perspective with borrowing bound to be more expensive for the government on the bond market now it’s lost its prestigious credit rating. However the Tories wish to dress this up it is a failure of mamouth proportions even on their own standards. Only a socialist solution to the crisis will solve the underlying issues. No tweaking of the capitalist system now will solve the under lying issues this is not a cyclical crisis which we can just recover from this is a fundamental crisis of capitalism and only a system change to a democratic planned socialist system will do. Its time to ramp up the pressure on this gov by continuing to build for a 24 hour general strike and force them out whilst building TUSC a working class socialist alternative to the madness of the market.