Fraser Nelson is wrong on Britain’s AAA rating

Hang on there, did you really expect Coulton to say “yes we’re banking on a Tory win”?

He is saying that he expects “fiscal policy objectives will be reorientated over the course of 2010″. Hmm, which party is promising that? Hint, it is not a party led by someone called Gordon.

Guido,

Coulton says:

“We detect a growing cross party consensus that fiscal adjustment needs to happen.”

What Fraser Nelson omits to mention is that Fitch’s gives the UK a ‘stable’ outlook, whereas S&P gave it a negative one on 21st May. Ergo, things are seen as improving under the current administration. I loved the FT view on this ratings ‘news’, pointed out to me by Tom Freeman when I picked up the story at Though Cowards Flinch:

‘After a kneejerk sell-off, the pound recovered some poise as traders realised that the remarks contained little new information.’

He is saying that he expects “fiscal policy objectives will be reorientated over the course of 2010″.

They choose their words carefully. Objectives, not “cut immediately”. Hopefully, if we are recovering, the next objective for fiscal policy ought to be gradually, sustainably and realistically dealing with the deficit, getting it down to 4% by 2019 would be pretty good, by which time debt might be 100% (public) and households pretty secure again. Then we can consolidate over the next decade.

Cutting immediately might well lead to more recession, more debt, higher deficits, the worst of all worlds. I am hoping that Osborne will work this out within a year. That spreadsheet in Slash and Grow may help?

http://www.centreforum.org/assets/pubs/play-with-gdp.xls

As a swing voter, and someone who thinks highly of Lord Lawson in some regards, I find the contrast between the abilities of THAT former editor of the Spectator, and the current one, disturbing, and emblematic of the general crisis we may find ourselves in when similarly naive and economically untrained people take over the Treasury next year.

I would add that while, politically, I would love a hung parliament next year, the sight of Congress fighting over Bills does not fill me with confidence about what will happen to gilt yields if it happened. Undivided power is generally tyrannical, but it has helped the UK deal with 4 fiscal crises in 40 years (1969, 1977, 1980s, 1990s)

I try to be a good person. But I am always delighted when Fraser Nelson is wrong: http://bit.ly/3GVtxo #schadenfreude (@leftfootfwd)

There’s so much stupidity and madness in Guido’s comment one has to assume it’s a joke. After all, isn’t Fawkes supposed to be anti-politics? Why is he popping up defending the Tories time and again? No, it must be an imposter…

Giles, how can you be a floating voter? I thought you were indentured to the Liberal Democrats?

[...] is called ‘Two Elementary Mistakes’. That’s a heap of regurgitated crap too, as Duncan shows, but at least the headline’s [...]

I only joined the party a couple of years ago. Voted every way in the past. Politics can’t work without us non-tribal types, who change their minds after the age of 18 a few times.

I can’t quite believe how much like the Twat-o-Tron the comments at the bottom of Spectator blogs are.

[...] day, Bloomberg reported that the UK was “unlikely” to lose its top credit rating. And scotching suggestions that a looming Conservative victory was the only thing maintaining the AAA rating, last week Brian [...]

Fraser Nelson caught telling porkies over the Tories saving UK's AAA rating: http://bit.ly/3GVtxo #torylies

Fraser Nelson is wrong on Britain's AAA rating http://t.co/cdKe4vbg

Fraser Nelson is wrong on Britain's AAA rating http://t.co/damZkMqd

Fraser Nelson is wrong on Britain's AAA rating http://t.co/ayhdxY4h