French policymakers were angered last week when Standard and Poor’s, a ratings agency, threatened to downgrade eurozone nations — including France — if leaders did not act urgently to address the single currency crisis.
But in an interview with Le Télégramme, a French regional newspaper, Mr Noyer said the downgrade did not appear “justified in regard to the economic fundamentals”.
“Otherwise, they should start by downgrading Britain which has more deficits, as much debt, more inflation, less growth than us and whose credit is collapsing,” he added.
Yes, and Brtiain also has it\’s own printing press. So we cannot in fact run out of money. We do not have to default: we can inflate the debt away.
Agreed, the creditors will still lose their money but that\’s not quite what the ratings agencies are measuring.
That the Head of the Bank of France doesn\’t get this (or chooses to not let on that he does) shows one of the problems that the whole eurozone has. The denial of basic economic truths.