Wall Street is Getting Worried Tories Won't Win

Gordon loves to quote the policy endorsements of Paul Krugman, the New York Times columnist and Nobel Prize winner – always neglecting to mention that Krugman is a friend and ally.  The New York Times today however is not so keen on Britain’s economy.

The business section is mainly read by Wall Street liberals, nevertheless they run investment funds that move markets.  The UK this morning is bracketed with Greece, the NYT warning that if the Tories don’t get a strong majority:

“… investors could start to make it greatly more expensive for the government to raise funds, setting the stage for a potential double-dip recession, if not worse… If you really want a fiscal problem, look at the U.K… In Europe, the average deficit is about 6% of G.D.P. and in the U.K. it’s 12%. It is only just beginning… the British government … has been able to finance a budget deficit of 12.5% of G.D.P. — equal to Greece’s — at an interest rate more than two full percentage points lower only because the Bank of England bought the majority of the bonds it issued last year.”

As the pound slid Nick Clegg tried to reassure investors that if there is a hung parliament the LibDems would not risk Britain’s creditworthiness – surely that effectively means he can’t prop up Gordon Brown.  Clegg said this because he realises that once foreign investors realise the only buyer of government gilts last year was the Bank of England and they lose confidence in a Tory election victory, they could rush for the exit.  Foreign holdings of gilts fell from 35% to 29% last year.  Capital flight is already starting…




Tip offs: 0709 284 0531
team@Order-order.com

Quote of the Day

Jeremy Corbyn told by veteran Jewish MP Margaret Hodge…

“You’re a f***ing anti-aemite and a racist”

Sponsors

Guidogram: Sign up

Subscribe to the most succinct 7 days a week daily email read by thousands of Westminster insiders.
Marr’s May Monopoly Marr’s May Monopoly
CCHQ Begs Association Chairmen CCHQ Begs Association Chairmen
Poll: Voters 2 to 1 for No Deal Poll: Voters 2 to 1 for No Deal
Paul Mason Reported to Police Paul Mason Reported to Police
Etonian Free Cabinet Etonian Free Cabinet
Tory MP Puts Letter In to Brady Tory MP Puts Letter In to Brady
Lord Carrington Lord Carrington
Poll: May’s Deal or No Deal? Poll: May’s Deal or No Deal?
Labour’s Chequers Survival Kit Labour’s Chequers Survival Kit
Whips’ Patsies in Full Whips’ Patsies in Full
Tories Will Lose Votes if They Cross Brexit Red Lines Tories Will Lose Votes if They Cross Brexit Red Lines
Remain Used Same Spending Tactics as Leave But Far Worse Remain Used Same Spending Tactics as Leave But Far Worse
Paul Mason’s Coming Home to England Paul Mason’s Coming Home to England
Penny’s Sign Language at Despatch Box Penny’s Sign Language at Despatch Box
Lefties Disappointed as England Win Lefties Disappointed as England Win
SNP Plot to Ruin England Match SNP Plot to Ruin England Match