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France has lost its AAA


krusty

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[quote user="idun"]I do not understand this at all. These companies who make these decisions are something like Bond villains, just my opinion of course, but that is how I feel about them.[/quote]

Not really because these companies are more corrupt.

I guess the UK papers will be gloating tomorrow. Give it six months and the UK will be loosing it's as well.

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[quote user="woolybanana"]

Corrupt, maybe, but they give a good impression of what state a State is in. But, there is an American election coming up.

Anyway, most European states have been living way beyond their means and exporting jobs and deserve what they are getting.

[/quote]

Exactly and it takes the minds of Americans of the massive debts that Maine, California and New York State have which cumulatively make most of the EU's debts pale in to insignificance. Lets face the Euro is no friend of the dollar. Politicians are brilliant at pointing the finger at others to deflect comment away from their own problems.

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Graham Neilson, chief investment strategist at Cairn Capital, warned: "This is just the start. There will be more to come and not just in Europe – there is simply still too much debt and not enough growth in developed economies. Germany is already under review and one of the paths forward in this Eurozone situation includes a deterioration of Germany's debt metrics which the rating agencies will need to consider.

http://www.guardian.co.uk/business/2012/jan/13/eurozone-crisis-france-credit-rating-aaa

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[quote user="Quillan"]

...Give it six months and the UK will be loosing it's as well.

[/quote]

The UK may or may not lose its rating; the big difference between the two countries is that although UK too has large debts it has proved more able to cut and control spending than France. The difference between the two health services provide a good example of this; France's may well be 'better', but at a cost.

Sarkozy was elected on a promise to improve things in this respect, but has failed - or more precisely has chickened out in the fact of great public protests at his planned measures.

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[quote user="Will"][quote user="Quillan"]

...Give it six months and the UK will be loosing it's as well.

[/quote]

The UK may or may not lose its rating; the big difference between the two countries is that although UK too has large debts it has proved more able to cut and control spending than France. The difference between the two health services provide a good example of this; France's may well be 'better', but at a cost.

Sarkozy was elected on a promise to improve things in this respect, but has failed - or more precisely has chickened out in the fact of great public protests at his planned measures.

[/quote]

Yes Will but it also depends on it's ability to pay back the loans. Just like a person the UK needs to earn money to be able to pay back any loans. With unemployment rising, and it will rise quicker once the public sector cuts really take hold, the pound getting stronger (or the Euro getting weaker, whichever you prefer) exports to the Eurozone countries will be hit. Seeing how that's 40% of the UK export market it will effect the UK's ability to pay back the loans. The last thing the UK needs is a strong pound with relationship to the Euro and the dollar. Companies like Nissan and Toyota who export 80% of their cars to Europe will be particularly hit. That in turn will effect the smaller companies that manufacture and supply the parts to build the cars making even more people unemployed (just as one example). So just like a person if your ability to pay back loans gets smaller so does your credit rating.

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[quote user="Quillan"][quote user="Will"][quote user="Quillan"]

...Give it six months and the UK will be loosing it's as well.

[/quote]

The UK may or may not lose its rating; the big difference between the two countries is that although UK too has large debts it has proved more able to cut and control spending than France. The difference between the two health services provide a good example of this; France's may well be 'better', but at a cost.

Sarkozy was elected on a promise to improve things in this respect, but has failed - or more precisely has chickened out in the fact of great public protests at his planned measures.

[/quote]

Yes Will but it also depends on it's ability to pay back the loans. Just like a person the UK needs to earn money to be able to pay back any loans. With unemployment rising, and it will rise quicker once the public sector cuts really take hold, the pound getting stronger (or the Euro getting weaker, whichever you prefer) exports to the Eurozone countries will be hit. Seeing how that's 40% of the UK export market it will effect the UK's ability to pay back the loans. The last thing the UK needs is a strong pound with relationship to the Euro and the dollar. Companies like Nissan and Toyota who export 80% of their cars to Europe will be particularly hit. That in turn will effect the smaller companies that manufacture and supply the parts to build the cars making even more people unemployed (just as one example). So just like a person if your ability to pay back loans gets smaller so does your credit rating.

[/quote] I am not convinced that the 40% export to the Eurozone is strictly accurate. I believe this figure is distorted by ''The Rotterdam Effect'' (maybe the wrong name) which classes all UK exports which go through Rotterdam as being exports to the Eurozone, even if said exports are in transit to other parts of the World. Even so, a strong pound is not necessarily a good thing.
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Quillan said.....

Yes Will but it also depends on it's ability to pay back the loans. Just like a person the UK needs to earn money to be able to pay back any loans. With unemployment rising, and it will rise quicker once the public sector cuts really take hold, the pound getting stronger (or the Euro getting weaker, whichever you prefer) exports to the Eurozone countries will be hit. Seeing how that's 40% of the UK export market it will effect the UK's ability to pay back the loans. The last thing the UK needs is a strong pound with relationship to the Euro and the dollar. Companies like Nissan and Toyota who export 80% of their cars to Europe will be particularly hit. That in turn will effect the smaller companies that manufacture and supply the parts to build the cars making even more people unemployed (just as one example). So just like a person if your ability to pay back loans gets smaller so does your credit rating.

 

But, of course, the UK being outside the EZ has the ability to devalue its own currency, something which EZ countries cannot.

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