“For the market, the rating downgrade will underline that their earlier belief in the plan has proven wide of the mark. Part of the repricing of GBP that this reappraisal implies is already under way. There is more to come.”
The British people are already suffering the consequences of devastating inflation and not only rising prices but declining quality, witness the horsemeat scandal. There is no room for further inflation undermining spending power and increasing business costs and there is no up-side in a boost to exports given the destruction of Britain’s industrial base. The policies of the last 30 years will only be seen in retrospect as the wanton destruction of a nation. In fact, they were conceived within the context of Anglo-American hegemony, a dream of empire which is no more. What remains is a complete mess. The solution lies in national reconstruction within the context of complete abandonment of imperial pretension, demilitarisation and definancialization, and the acceptance of the new multipolar reality
Telegraph
24th February, 2013
Andrew Sentance, who served on the Bank’s rate-setting committee until May 2011, cautioned that the cut to the UK’s credit rating would add to the existing “downward pressures on sterling”.
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In These New Times 