The mystery of the English AAA rating

Discussion in 'Europe' started by hvactec, Mar 12, 2012.

  1. hvactec

    hvactec VIP Member

    Jan 17, 2010
    Thanks Received:
    Trophy Points:
    New Jersey
    Posted by N. Rheannon Berberi in English Posts

    Discussing England moves a certain evocative appeal in the mind of those who define themselves as liberal. It was the birthplace of modern democracy that began with the enactment of the Magna Charta, as well as the cradle of the industrial revolution, which brought a long-term welfare never before known in the whole world. It was also the State from which the liberal revolution, that culminated with Mrs. Thatcher’s government, started.

    However, it’s been some time since the land of Albion comes across most people as a nation in crisis, beset by some problems that have made it enter the club of the under-performing of the European Union, so much as to change the acronym coined to define them in PIEGS (Portugal, Ireland, England, Greece and Spain … with a curious and temporary exclusion of Italy from the list). Data from 2009.
    What happened in recent years for a historically rich State to transform in a land in crisis for someone to point it out as close to default, keeping however an AAA rating by all agencies?

    Surely the first cause may be sought in the composition of the British GDP. Today 73% of it depends solely on the services sector, especially financial services, while the industrial sector has slowly gone decreasing in the years following the Thatcherite revolution that, liberalizing markets, led many entrepreneurs to look for areas of action with higher added value than the traditional manufacturing, as well as it pushed young people to seek more lucrative employment opportunities to the activity of worker or craftsman. It would seem obvious, however, that these justifications are reductive and, perhaps, quite a bit ideological in what could be described as the worst crisis since the last world war.
    The real cause of the quiet English crisis can be found overseas with the abolition of the Glass Steagall Act in the U.S

    Read More The mystery of the English AAA rating | The Fielder

Share This Page