What do Canada and Germany have in common?
Besides winter, a love of beer, and parliament buildings, what does Canada have in common with Germany? A Triple-A credit rating, that’s what!
A credit rating is an estimate of your ability to pay back your debts. Credit ratings are given to individuals when they apply for loans, and they are also given to nations by credit rating agencies to show how reliable they will be in paying off their debts, based on their previous actions. The highest credit rating available is a Triple A rating.
On February 22, the United Kingdom had its credit rating downgraded. The United States and France have both had their rating downgraded recently, leaving Canada and Germany as the only two remaining western nations with a Triple A rating.
What does that really mean? A credit rating is an indication of financial health and prospects for the future. Having a high credit rating means that more people will be likely to invest in your nation as it's seen as a safe bet. Credit rating agencies don’t like debt. They like to see governments making an effort to curb their spending and increase their earning of income.
Besides winter, a love of beer, and parliament buildings, what does Canada have in common with Germany? A Triple-A credit rating, that’s what!
A credit rating is an estimate of your ability to pay back your debts. Credit ratings are given to individuals when they apply for loans, and they are also given to nations by credit rating agencies to show how reliable they will be in paying off their debts, based on their previous actions. The highest credit rating available is a Triple A rating.
On February 22, the United Kingdom had its credit rating downgraded. The United States and France have both had their rating downgraded recently, leaving Canada and Germany as the only two remaining western nations with a Triple A rating.
What does that really mean? A credit rating is an indication of financial health and prospects for the future. Having a high credit rating means that more people will be likely to invest in your nation as it's seen as a safe bet. Credit rating agencies don’t like debt. They like to see governments making an effort to curb their spending and increase their earning of income.
What would it mean for an economic system to be completely free? Would there be credit ratings? Would there be controls on debts and investments? The economies of Canada and Germany survived the economic crisis of 2008 better than many nations, partly due to their more regulated economies. Canada is apparently doing pretty wel, although some reporters feel our days are numbered. If our economic growth continues to slow down, we could be the next nation to lose that favoured status.
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