Monday 27 October 2008

UK in worst position of G7 countries

Graham Ruddick has an interesting piece in the Telegraph explaining some of the reasons behind the appreciation of the carry trade currencies. Whilst carry trade unwinding has made the fall of sterling towards the $1.40 mark much faster, in the end the level it reaches is determined by economic fitness of the UK in relation to other major economies.

For many, the most telling thing about the article is the following quote from Standard Chartered:

"The reason that sterling is doing badly is that, in our view, the UK is expected to be the worst performer among the G7 economies over the next 6-12 months because it will contract around 2pc next year," says Mr Mann at Standard Chartered".

When Gordon Brown mentions recession, he adds the prefix "global".. at PMQ's the other day he twisted and turned reeling off the names of other G7 countries before tacking on the UK as if it were an innocent victim of events beyond it's own control. To economic incompetence and distasteful greed for power we can add unseemly hubris - and total contempt for the electorate which he has betrayed.

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