The euro plunged and US stock markets dived last night after Spain was stripped of its top-level credit rating by a leading rating agency over concerns about its economic growth.
In the latest blow to the eurozone, which is struggling to cope with the fallout from the Greek fiscal crisis, Fitch Ratings downgraded Spain’s sovereign credit rating — a measure of how easily it can meet the interest payment on its debt — by a notch from the top AAA rating to AA+.
Standard & Poor’s, another ratings agency, downgraded Spain’s rating for the second time to AA last month but Moody’s, the other leading agency, has maintained the rating at AAA.
As EU Referendum warns us...
This may be survivable, but even those with short memories will recall that this is how the Greek crisis started. And Spain is a much bigger economy...
Indeed. And just remember, Richard Murphy wants us to run our businesses in the same way that our governments run themselves.
Until multinational corporations are required to have non-execs from outside business they will not be brought to account.
And don’t argue the skills aren’t possible. We run governments on this basis - and it does work.
Actually, right now government is one of the very few thing that is working.
Yep, Richard: Greece's government is working really well. So is that of Spain. And our own dear state has only racked up about £700 billion of debt—a figure to which it is still adding £0.5 billion per day.
Yes, Richard: government's working alright.
As I wrote earlier, Richard Murphy must be one of the most deluded nitwits in the Western World, possibly on a par with Gordon Brown. Murphy isn't interested in the betterment of the poor—he is only interested in bringing about the destruction of capitalism and the collapse of the civilised world.
As a commenter pointed out on my earlier post, now might be a good time to highlight the activities of The Cobden Centre, a think-tank dedicated to "sound money", and in particular Toby Baxendale's post in which he outlines a way in which we could "pay off the National Debt and give a 28.5% tax cut".
I have yet to be totally convinced by The Cobden Centre's philosophies: whilst libertarians want sound money, Adam Smith saw the value in fractional reserve banking, i.e. faster economic growth. Which is why I like the Libertarian Party's monetary policy—a policy that allows for fiat currency, sound banking and fractional reserve banking through a relatively simple policy of currency competition.
I am open to ideas on currency: there is only one thing that I am absolutely sure of—that Richard Murphy should not be allowed anywhere near any kind of fiscal policy...