Economy: Deficit Reduction

Lord Dykes Excerpts

Thursday 15th December 2011 Lords Chamber

[Lord Sassoon]

My Lords, first, the deficit reduction strategy, as the OBR confirms, is absolutely on track. If the noble Lord is suggesting that we should cut expenditure and raise taxes, is that the policy of his party?

[Lord Dykes]

My Lords, did the Minister notice that the credit rating agencies and the American-dominated $16 trillion debt system gave AAA ratings to all the hedge funds and banks that collapsed in the United States and elsewhere in the world just about a week or a few days before they actually did collapse. Are they really so reliable?

[Lord Sassoon]

My Lords, the track record of the credit rating agencies as far as sovereign debt is concerned speaks for itself. It is quite different to the mistakes that they have made in other sectors.