Moody's has decided to strip the United Kingdom of its AAA rating; rather a disappointment from the government's perspective after their three years of austerity rhetoric. This is not a surprise for onlookers. What did they expect after beating the drum about spending cuts? And avoiding any actual pain. The coalition government will be viewed as a missed opportunity. Monetizing debt on the backs of wages, foisting pain on to the next generation and avoiding the radical cuts required has led to a fatted state draining life from the private sector aided by the stagnation of zero interest rates.
There may be plenty of external headwinds but our predicament is predictable, political and homegrown. Plenty of pain all round.