Clock it is Friend of Time

When it comes to the budget deficiency it can feel, at present, like Britain's getting flashbacks from every bad trip we've ever had - Black Wednesday, Harold Wilson's devaluation, Jim Callaghan at the airport...

There is an ambiance of impending crisis - some fear manufactured - where the City gangs up on Whitehall; where hands are forced; where political truth meets financial reality, and the money wins.

Mervyn King gave the government an extra supreme-spin on Tuesday when he threw in a quote from his opposite US number, Ben Bernanke.

"Unless we demonstrate a strong commitment to monetary sustainability in the longer term, we will have neither financial stability nor healthy economic growth. The Chancellor has made clear that the Fountain-head Budget provides the opportunity to do precisely that."

Translated out of Mervynese, this means he wants more clarity about the path to a sustainable budget shortfall - he has said before that the government needs to do more. In fact translated even more it simply means: I am on your case.

Who are these agencies?

In the nightmare design, the waking up in a sweat screaming moment for any politician is when the credit rating agencies, jointly or severally, displace Britain's credit rating.

This is currently AAA and always has been, which means lending to the UK government carries a zero risk of lapse.

But who are these agencies? What right have they to say to an elected government that it needs to do more? And are their methods sound?