I am no economist so perhaps someone out there can explain to me the beneficial uses of country and bank credit ratings.
It seems to me that some of them will be self-fulfilling prophecies as if companies like Fitch downgrade a country then the cost of borrowing increases for that country putting it in a worse position than before.
Why do organisations and media talk down the world financial situation so much? We all know that the borrowing culture, by individuals, banks, countries has got out of hand and everyone needs to reign in their borrowing habit so why make the situation worse by spreading gloom and doom?
The UK situation looks brighter than we are led to believe. We are reducing our public spending in order to control borrowing. It does not take a genius to realise that this is the only course of action we can take as if taxation is increased then the public will borrow more, so reduction in spend is the only answer. Hopefully history will tell that we have a government that is putting the future of the country ahead of its own political fortunes.
Of course we will hear the usual political rhetoric from those who are on the other side, but that is what they do!! It has nothing to do with logic, reality or common sense.
It is a pity that we have political parties at all during this time as the pragmatic approach is the only one which will resolve the problems we currently have.
The coalition government will probably not have long enough to put in place all the actions we need to take and we will get a change of government too soon.
Remember, there are less than one million people in the membership of the parties that rule the country and more than 60 million people who are not members of any party, so we are governed by a tiny majority, although the current incumbents seem to be doing what the majority wish.
So let's get more positive, the media MUST curb their enthusiasm for bad news and their ill hidden joy at any thing which seems detrimental to us all.
The silent majority has the power to change the world if only they could be motivated to do so. Things can not be too bad yet or they would be uniting now. Small innefective groups such as "Occupy xxxxx" are distracting us from the solution. It would be better if they used their enthusiasm to unite millions of others in a sensible course of action