This is becoming very interesting indeed as things come to a head between the UK and the Eurozone. Britain is the living proof of the absurdity of the notion that being outside the Eurozone allows the economy to flourish; that allowing the currency to fall is some kind of automatic compensation for massive indebtedness. It is most striking that europe has actually benefitted from the fall in the euro, with a surge in exports. This illustrates the underlying strength of Europe, at least, vis-a-vis the UK where the trade deficit has only worsened with the fall in sterling. Britain is a parasitic financier based economy; Europe still has substantial productive capacity, it has a real economy. Let’s see where this takes us as the hedge funds start shorting the pound and the illusory foundations of UK prosperity disintegrate.
25th March, 2010
Foreign leaders believe a Tory win in the general election could prove to be the biggest obstacle to French and German plans to give Brussels sweeping new powers to police national economies.
In These New Times 