Sterling is crashing on the prospect of a Labour Government

Wednesday, 03 March 2010

That Britain is in serious financial trouble, soon to be of the IMF kind isn't really in dispute among sane people, in this previous editorial from 23rd February we stated: "If Labour win the election Britain will be off to the IMF within months as the markets decide what Brown won't, that the UK is bust." . Since then there have been a number of polls indicating that the Conservative lead is around the 5% mark, meaning that with all Labour's gerrymandering they will have the largest number of seats, that they will form the next Government. (The Conservatives require a 9% majority just to win the same number of seats as Labour)

In the last week the international financial markets, nothing to do with the City of London, have been steadily selling the Pound, it has been falling the last three months against ALL the major currencies and since the latest polling news has fallen even further and more rapidly. What the British people don't know, or refuse to believe is that the party is well and truly over.

John McFall in the following video states that since 2007 the Pound has been falling and this is a long term trend. Ask yourself why there should be a long term trend in the fall in the value of Sterling and there is one obvious answer: Which financial genius became Prime Minister in 2007?

Some choice quotes if you don't have time to watch the video:

"We're looking like Greece, not Germany now"
"There's a difference between a more competetive Pound though and a Pound in freefall"
"The markets have more faith in Italian debt than they do in British debt"
"Britain's debt costs are similar to Portugal's"
"Do you think the markets are trying to tell us something when Sterling so far this year has declined 7% against the Zimbabwe Dollar"