"Sadly, Britain deserves to lose its AAA rating.
The Moody's downgrade is the delayed fallout from Gordon's Brown fiscal bubble. Whether he believed his own propaganda or was just steering state patronage to Labour voters in public services, the elemental fact is that he ran a budget deficit of 3pc of GDP at the top of the cycle.
He must have been told many times that Britain has a highly cyclical economy and tax system, leveraged to the ups and downs in the global economy. The boom flattered tax revenues. The apparent success was a sham.
Other countries ran budgets near balance or in surplus at the peak. Spain had a surplus 2pc of GDP, and Finland even higher.
This is why Britain is now in deep trouble. Brown was gunning fiscal policy at 5pc of GDP over the safe speed limit, and he did so long enough to embed an unsustainable structure into the economy.
His fiscal excesses made the household credit bubble even worse – not helped by 120pc mortgages, home equity withdrawal of 4.5pc of GDP each year, and other idiocies – leaving the economy with a deleveraging crisis that will grind onto into the 2020s."