The rating agencies are, then, living on another planet far removed from reality, and are subscribing to an economic logic that is disconnected from the facts. If they do not appreciate that very soon my simple answer would be that the government rule that its debt is always investment grade and dispense with their services – after all, they pay for this nonsense; the agencies don’t do it for free.

Anyone want to explain the sovereign bond rating model to him?

20 thoughts on “Snippa…..”

  1. Dennis, Legend of the Parish

    I do not know what Spud is smoking, I don’t approve of it, and I want some.

  2. “If they do not appreciate that very soon my simple answer would be that…. ”

    In Questions We Can Answer today: Dear mr. Ritchie, they don’t and won’t, ever. Nor, quite frankly, would they be likely to notice.

  3. debt is always investment grade and dispense with their services

    It’s amazing that someone who is able to pass himself off as a (formerly) salaried professor at a university in this country can be so clueless. Then again, he’s not the first that have tried to pretend sovereign polished turds are gold, from Venezuela to Zimbabwe and others between, the track record hasn’t been good.

    Better to stick to what works, because if a ratings agency things your debt is dogshit then they are probably right and it will stop politicians from spaffing even more taxpayers money up the wall.

  4. That’s North Koren levels of deluded. ‘The government rule that their debt is always investment grade.’

    What’s even more worrying is he probably has no idea what that is such a mad statement to make.

  5. my simple answer would be that the government rule that its debt is always investment grade

    Zimbabwe and Venezuela tried that, didn’t end well. South Africa soon in same boat. Argies tried several times and always defaulted

    Richard Murphy really is a simpleton. He should be on global list: Employ as “Trolley Collector only”

  6. The Meissen Bison

    Anyone want to explain the sovereign bond rating model to him?

    Would he want to listen if they did?

  7. Richard Murphy really is a simpleton. He should be on global list: Employ as “Trolley Collector only”

    He’s cut from the same cookie cutter Marxist mold as the rest of his ilk. He/They will never learn anything because it would undermine their fundamental principle of “The Magic Money Tree”.

    To people like Spud, reality is racist, fascist, sexist and every other “ist/ism”, since it follows its own rational principles and will not conform to their diktat.

  8. I feel Boris is missing an obvious trick here by failing to rule that COVID has been eliminated.

  9. He should be on global list: Employ as “Trolley Collector only”

    He’d probably insist that the trolleys should have a parking space each, to the detriment of the customers.

    Then insist the supermarket must be doing something else wrong when they lose money because no-one can park, and therefore shop, because the trolleys are taking up all the parking spaces.

  10. I have been against lockdowns since before Boris announced UK one

    Japan, Sweden, Taiwan: Keep Calm and Carry On – no lockdowns and no ill effects

    Hitchens gives credit to Lord Sumption today
    https://www.dailymail.co.uk/debate/article-8188359/PETER-HITCHENS-deep-velvet-quiet-cities-terrifying-fire-bell-night.html

    Lots of oppostion to lockdown in MoS:
    Tory MPs want lockdown ended and rebeliing against Hancock’s ever more totaliterian measures which will destroy economy for generations

    Tory MPs and even NHS & PHE staff increasingly angry at Mgt refusing to use private sector

    BBC Marr more concerned Excel Centre not rent free, only reduced rent “Profiteering from crisis”. Strange they didn’t accuse Tesco et al of same for still making peeps pay for food

    MoS Comment
    https://www.dailymail.co.uk/columnists/article-8188329/MAIL-SUNDAY-COMMENT-Britain-proud-lets-way-lockdown.html

  11. “the government rule that its debt is always investment grade”

    He truly is the King Knut of our times.

  12. “the government rule that its debt is always investment grade”

    Trouble is, his next move would be to force all the pension funds to buy government debt. After all, it is investment grade.

  13. Pcar said:
    “Employ as “Trolley Collector only””

    He’d be one of the mad ones who tries to engage the customers in demented conversation.
    “I invented Corbynomics you know!”

  14. “I invented Corbynomics you know!”

    Look how well that went.

    Fortunately the Corbynists have cast themselves into the wilderness with both Diane “Mrs Numbers” Abbott and John McDonnell resigning, although the reality is both went before they could be pushed, unlike Barry Gardiner, Ian Lavery and Jon Trickett who were all sacked.

    I can’t like Sir Keir Starmer, since his time as the Director of Public Prosecutions (DPP) for England and Wales, and Head of the Crown Prosecution Service (CPS) demonstrated he was another tinpot little fascist, quite happy to ignore the rule of law in favour of prosecuting his personal prejudice. Nothing good will come of his time as Labour leader (fortunately).

  15. News

    PM Boris Johnson admitted to hospital after coronavirusinfection
    https://www.youtube.com/watch?v=WMMOc2wG5cg

    Boris, Wishing you a speedy recovery, be positive

    Covid-19 Global Deaths: 69,379

    UK Annual Deaths: >600,000

    SPECIAL REPORT: China’s deadly coronavirus cover-up
    https://www.youtube.com/watch?v=pKmUxSlOoUE

    Sunbathing is Banned
    https://www.youtube.com/watch?v=cpFsWzj5ZSE

    +100 Sargon. Hancock & Morgan have lost the plot. Cure worse than disease

    Covid-19 Global Deaths: 69,379

    UK Annual Deaths: >600,000

    The Police State: You will not sunbathe
    The Police State: RoP Child Rape gangs around the UK are still hunting children and inflicting terror on their victims without restriction

  16. Sovereigns can print money therefore they can’t technically default on their own currency except in limited circumstances. This doesn’t mean they will give you back any purchasing power after inflating their debts away or force refinancing upon you at unattractive terms.
    A debt trap is bloody hard to get out of without some form of debt restructure, see so many examples, which for a sovereign then means forced refinancing or refinancing The rating is really a recognition of this IMHO.

  17. BBC Marr more concerned Excel Centre not rent free, only reduced rent “Profiteering from crisis”

    Horsehit. Excel Centre is owned by The Abu Dhabi National Exhibitions Company of which Manchester City owner, Sheik Mansour is the patron. It is NOT charging the NHS a single penny for use of The Excel Centre as NHS Nightingale Hospital. The initial agreement was for the NHS to cover some of the fixed costs. ADEC have announced that they will cover the fixed costs in full.

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