S&P Downgrades UK From AAA To AA Due To Brexit: Full Text

Jon Alternative Media, Blogosphere, Economy, War

That didn’t take too long: just as the rating agencies warned as part of the scaremongering campaing, the downgrades of the UK have begun. None of this is surprising: now that both S&P and Moodys are also policy tools of the “establishment”, demonstrated so vividly in the downgrade and upgrade games involving Greece and most recently Poland, this is merely another attempt to push the UK citizens to undo last week’s historic referendum.
Here is how you know S&P has gotten orders from up top to unleash the heavy artillery: “Brexit could also, over time, diminish sterling’s role as a global reserve currency.”
Odd, that language was missing in 2011 when S&P downgraded the US.
In any case, considering 10Y Gilts are trading at a record low 0.93% knowing full well this downgrade was imminent, it is quite clear just how much “credibility” with the market rating agencies still have.

This post was published at Zero Hedge on Jun 27, 2016.