by Martin Armstrong
Standard & Poors downgraded United Kingdom (UK), which is comprised of England, Northern Ireland, Scotland, and Wales, from AAA to AA. This shows emotional and political bias rather than any substantial change in economics; they are making good on their political threats of 2015. S&P rates China at AA- and the European Union at AA+. S&P, who is notorious for selling its ratings during the last bubble, claims: “In our opinion, this outcome is a seminal event, and will lead to a less predictable, stable, and effective policy framework in the U.K. We have reassessed our view of the U.K.’s institutional assessment and now no longer consider it a strength in our assessment of the rating.” First of all, such an excuse would be justified with every US presidential election. Additionally, this downgrade before anything is settled is entirely inappropriate, especially when no government has NEVER paid off its debt and continues to borrow year after year.