The U.S. credit rating was given a negative outlook by Moody’s Investor Service in part due to the ballooning U.S. debt.
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BRITAIN’S CREDIT RATING DOWNGRADED BY MOODY’S TO AA1
The UK has had it’s credit rating downgraded one notch from AAA to AA1 by the credit rating agency Moody’s. Out of all the major economies this leaves only Canada and Germany with their top credit ratings intact.
The downgrade is a major blow for the government who have been tackling the UKs massive debt mountain, seeking to end the UK budget deficit by 2016.
Moody’s made the downgrade due to the continued poor economic growth, pointing out, “continuing weakness in the UK’s medium-term growth outlook, with a period of sluggish growth which [it] now expects will extend into the second half of the decade”.
UK Chancellor George Osborne has pledged to continue on his course of deficit reduction, calling Moody’s decision a “stark reminder of the debt problems facing our country – and the clearest possible warning to anyone who thinks we can run away from dealing with those problems”.
“Far from weakening our resolve to deliver our economic recovery plan, this decision redoubles it.”
Last year all three major credit rating agencies placed the UK on negative outlook.
FRANCE HAS BEEN STRIPPED OF “AAA” CREDIT RATING BY MOODY’S
The rating’s agency Moody’s has stripped France of it’s AAA credit rating. The agency cited France’s continued exposure to the eurozone debt crisis, but also said the inflexible labour market and low levels of innovation were seriously hindering France’s growth prospects.
In a statement Moody’s said: “Further shocks to sovereign and bank credit markets would further undermine financial and economic stability in France as well as in other euro area countries.
“The impact of such shocks would be expected to be felt disproportionately by more highly indebted governments such as France.”
The move is a serious blow to the socialist governments economic policies. Francois Hollande’s government is trying to push through labour reforms, though some believe they do not go far enough.
Moody’s Slashes 15 Banks In Ratings Bloodbath – TheStreet
NEW YORK (TheStreet) — Moody’s slashed the ratings of 15 of the largest world banks late Thursday …
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Moody’s cut Morgan Stanley(MS_) by two notches to Baa1, instead of a possible three notch cut. The agency also cut JPMorgan Chase(JPM_), Citigroup(C_) and Goldman Sachs (GS_) by two notches and Bank of America(BAC_) by a notch in a sweeping ratings change that still gives the nation’s largest banks a negative outlook.
DOW DROPS 250 POINTS-
Dow loses 250 points…
…Spain would need to borrow up to $78bn …
…Moody’s expected to start downgrading global banks… Barclays, Deutsche Bank, Citigroup and Goldman Sachs…
Moody’s warned in February that the ratings of 17 banks and securities firms under review because they face increased funding costs and regulatory scrutiny.
…German economy, the safest in Europe, weakening.
German support has so far saved the eurozone from meltdown, Germany’s private sector shrank for the second month running in June, manufacturing, a three-year low.
via Markets fall amid gloomy US forecast and global slowdown
Markets fall amid gloomy US forecast and global slowdown | Business | guardian.co.uk.
Credit Rating Agencies to Review US AAA Rating
President Obama and leading cross-party congressmen are continuing to try and break the deadlock of the deficit reducing measures required, before Congress will allow the increase in government debt, before the August 2nd deadline.
Talks continue to end in stalemate, and yesterday saw President Obama, famous for keeping his cool, loosing it and storming out of talks. With elections next year no party wants to concede ground, or appear to cause an American debt default, which could happen if the ceiling is not lifted before August 2nd.
Today the pressure to reach a deal intensified with news that the Moody rating agency is “reviewing” the American AAA rating, with a view to downgrade the rating over fears America may default on her debts. Moody’s have previously said they are looking for a speedy resolution to the credit limit issue. Furthermore the rating agency S&P have also come out to say they too are looking at the US credit rating, and have gone as far to say there is a one in two chance of a downgrade; fearing the political entrenchment is worsening.
A default on debt would carry catastrophic consequences to the global economy, plunging the West back into recession, domestically social security payments would not be made, and government employees would not be paid.
This is a key time for the financial stability of the US and the world, Christians need to pray for her leaders to forge a wise road ahead. Support Prophet TV as the Washing DC mission continues, and we seek to block the demonic trying to access Washington via the Kalachakra rituals.