This has one benefit, it helps exporters. However Britain runs a current account deficit and imports more than it exports. Key commodities are priced in dollars, so although oil has fallen 50% in price, the fall in the pound against the dollar means that that benefit is reduced by 25%.
The reason the pound is falling is because foreign investors don’t want to hold sterling assets. Money supply (M4) is off the chart, the government is flooding the debt markets with cash, gilt issuance is going to be a massive £100 billion, the government is still a AAA risk for now, but so were many investment banks until recently. Nobody believes Gordon’s “we have reduced government debt” routine, it is laughable, where did the money for all the schools, hospitals, quangoes and bureaucrats come from Gordon? Include all the taxpayers liabilities and UK government debt is up there with Italy at over 100% of GDP.
There is a lot of scepticism about Gordon’s borrow more, spend more solution. It will be years before any capital infrastructure spending will come through to the real economy, it will worsen the government’s indebtedness and crowd out the private sector. The Tories seem incoherent and without a macro-solution, a little help here and there for small business isn’t going to turn around the economy. “Sound money and economic responsibility” is all very well, if that had been government policy rather than just an opposition slogan we might not be in this mess. It has come to something when the LibDems offer voters more in tax cuts than the Tories. Today Britain desperately needs a real growth package for the real economy. The Tories are too timid and scared of the old Labour attack lines. Voters understand that government spending has to be tightened, Clegg senses that too, why not the Cameroons?
The ultimate baddie was a Russian spymaster. What no evil Christians? No duplicitous Americans, no Israeli Mossad manipulators, no big business plutocrat exploiters? This is the BBC, we expect to be force fed left-wing platitudes and propaganda, not given a patriotic tear jerker.
The 10 O’Clock News returns things to normality: “Tonight America is accused of terrorism…” Don’t start paying the TV licence fee just yet.
“I think I did make a mistake. In politics it is not just what you say and what you do, but how things look. This did not look very good and I regret that…”
He sounds like he is willing to take his punishment.
Mandy Faces EU Probe – News of the Screws
Mandelson Oligarch Oleg Deripaska Linked to Mafia Boss – Sunday Times
Lord Mandelson and Oleg Deripaska, the Billionaire at Bay – Sunday Times
Mandelson’s Last Act in Brussels Boosted Russian Oligarch – Indy on Sunday
Pressure Mounts on Mandelson to Come Clean – Sunday Telegraph
Oligarch Flew Mandelson into Moscow for Dinner – Mail on Sunday
“Osborne and Rothschild’s Drug Crazed Sex Parties” – News of the Screws
Reeves Red-Faced After Pension Gaffe | Sun
Band’s Fury at Song Being Used at Labour Conference | Buzzfeed
Rachel Reeves’ Pension Howler | Mail
UKIP Propose 90% Cut in Overseas Aid | Breitbart
Ed Milibaaaand | Sun
Ed Miliband Phrase Generator | Guardian
Blair Right About ISIS | Jago Pearson
Miliband Will Be Prime Minister By Default | Alex Wickham
Labout Have Learned Nothing | Jeremy Warner
How Cameron Can Return to No. 10 | Telegraph
Balls Speech Was Mush | FT
Before Miliband spoke, a school choir sang ‘Fix You’ by Coldplay. The first verse of which goes like this:
“When you try your best, but you don’t succeed
When you get what you want, but not what you need
When you feel so tired, but you can’t sleep
Stuck in reverse”