Pound plunges to five-year low as manufacturing performance is worse than expected
Posted by seumasach on January 12, 2016
The exposure of the chronic weakness of the UK economy is long overdue: a bombed-out high street, empty pubs, falling share prices, the collapse of the property bubble and local government insolvency are all on the horizon. But the negative current account is the icing on the cake. Presumably, this reflects lack of interest in UK government bonds and the continued need to monetise them i.e print money to buy them: hence the inevitability of a sterling crisis with an accompanying inflationary surge or rising interest rates which will trigger the collapse of the financial sector. We are indeed cursed by interesting times!
12th January, 2016
Sterling plunged to a five-and-a-half year low against the US dollar on Tuesday, as the UK’s manufacturing sector shrunk unexpectedly.