The UK has lost it's first AAA rating. The others will surely follow.<\/p>\n
So what you say?<\/p>\n
First, it was a Tory sniffs to commitment not to do so. <\/p>\n
Second, that makes this. Resigning issue, but Osborne will not go.<\/p>\n
Third, it's a real sign that Tory policy has failed.<\/p>\n
Fourth it indicates that Labour has to offer a real alternative and sooner rather than later.<\/p>\n
Fifth it may marginally increase the cost of UK borrowing.<\/p>\n
However, sixth QE will deal with that. Expect more.<\/p>\n
Seventh, it indicates devaluation is likely. I don't forecast a Black Monday although I don't rule it out. I do think significant movement in the value if sterling is likely (below $1.50 and settling there).<\/p>\n
Eighth, that may give the economy the boost it needs to start recovery. For Labour this means to back to point four.<\/p>\n
Don't doubt this is a big moment, but the outcome is unpredictable. And what Osborne feared most might yet save the economy. But no Chancellor or their party has survived a currency crisis. <\/p>\n
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