The BBC reports that UK loses top AAA credit rating for first time since 1978:
Chancellor George Osborne said the decision was “a stark reminder of the debt problems facing our country”.
“Far from weakening our resolve to deliver our economic recovery plan, this decision redoubles it,” he added. “We will go on delivering the plan that has cut the deficit by a quarter.”
As the UK slips into its third recession since the global meltdown, Messrs Cameron and Osborne will triple down on their austerity program which will continue the downward spiral of the British economy. This is because their only other option would be to actually follow the policies that helped to end the Great Depression, i.e. increase government spending to make up for the shortage of private sector demand. It doesn’t seem to occur to Mr Osborne that public spending on the Olympics helped the economy to grow, and when that spending stopped so did the growth.