On Friday, S&P’s downgraded the credit rating of France and eight other eurozone members. ROAR founder Jerome gave his perspective on Russia Today.
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Last Friday, rating agency Standard & Poor caused the eurozone debt crisis to flare up anew as it downgraded the credit rating of France and eight other eurozone countries. While the downgrade was expected, it still caused turmoil in markets as the euro dropped to new lows to the dollar and stock markets around the world slumped.
Political economist Jerome Roos told RT that the downgrade is just a subjective opinion by a powerful private institution and should be taken with “a grain of salt.” He warned that we should be really worried about the leverage and the power these subjective opinions ultimately have on the crisis and the ways of getting out of it.
“The power of these rating agencies dictates the discourse, the debate here in Europe. It allows them, to a certain extent, to dictate almost self-fulfilling prophecies. Ultimately, the downgrade is justified by the results of the impact of the downgrade itself.”