ZZZ rating

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Quiet please. Research on bonds being undertaken

Moody’s has been sleeping on the job for years. Its ineptitude, writes Dalrymple, is demonstrated by the high ranking it used to accord Britain.

Dalrymple examines various aspects of the British economic mess that the rating agency, luxuriating in a deep slumber, failed to notice. For instance, the British prime minister Tony Blair used repeatedly to refer to big spending increases

as ‘investments’. So did [the chancellor and Blair’s successor as premier] Gordon Brown.

Blair

felt it unnecessary to provide evidence that this spending brought benefit, economic or otherwise, or to consider its costs. He spoke as if the money came from a generous extraterrestrial donor and not from higher taxes and government borrowing.

Dalrymple concludes:

A country with a government that cannot tell the difference between investment and expenditure is one from which lenders would best steer clear.

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