Gerd's Blog

Rating agencies

I am following the financial discussion and the in particular what Rating agencies are doing for several time now. Some of you, special thees under you who read also my twitter feed, may already know that I have a strong opinion on these agencies but since several days i think that we are in the middle of a financial war. What brings me to this hard conclusion?

Take a look at the systematic changes in the ratings of the different European states. It all started with Greece, where yes I also know it the situation is critical at the moment, but giving them an “CCC” rating, which btw. is similar to the one Afghanistan is just not an objective view. The second step in starting the war was downgrading Portugal, shortly followed by Spain and Italy and today by Ireland. All these actions are perfectly coordinated and make total sense if you want to have an deep impact on the financial market in Europe.

The question now is why are these rating agencies starting this financial war? Well in my opinion this has two reasons:

  1. Making money
    Ware is always a time where some people are earning a lot of money and most of the people are loosing everything they have. In this situation companies that lend the money to the countries would earn a lot of money and people living in these companies will loose it.
  2. Move the focus from the Us
    Currently the situation in the US is far more dangerous then the one in the EU. The EU has still several states that can finance the situation and the government of thees countries does either not have the knowledge or the power to act in an appropriated way. The US on the other hand is in real trouble as time and money is running out – but nobody complains about that. They still have their “AAA” Rating.
In think what rating agencies are currently doing is somehow Terrorism. If you look up the definition of Terrorism om Wikipedia e.g. it says:
There is no universally agreed, legally binding, criminal law definition of terrorism.[1][2] Common definitions of terrorism refer only to those violent acts which are intended to create fear (terror), are perpetrated for a religious, political or ideological goal, deliberately target or disregard the safety of non-combatants (civilians), and are committed by non-government agencies.[citation needed]
Rating agencies have an ideological goal: Make money, no matter what the costs are.

 

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