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January 25, 2010



Do you honestly think that the FX markets would go shorter sterling on a Tory (let's do something to control the deficit) vicory than a Labour (spend, spend, spend on our lovely client state) victory?

If so, you're deluded.

The pound isn't crashing BECAUSE the markets are pricing in a return to sanity under the Conservatives.

Trevor Brown

Isn't it the case that the cause/s of currency movements are largely unknown or speculative themselves?

If causes were known, then so would future exchange rates - and clearly they are not...

see for example:


This also applies to interest rates.

Make a list of economists and financial who predicted the lowest central bank rate in the UK in 300 years...oh, and is George Osborne or Alistair Darling on the list?


Of course, we know that the whole point of the paragraph is the phrase "keep mortgage rates as low as possible". The rest is mumbo-jumbo, whose only purpose is to march the vote-catching key phrase into the public eye.


There is only one option now that we have a budget deficit of 13% of GDP and zero nominal interest rates. A massive fall in the pound. At least it shows Mr Osborne hasn't forgotten the lessons of 1992.


William is right. The Tories were once the political arm of the rural landed interest, now they are the provisional wing of the urban landed interest - property development. Let's not forget that back in the late summer and autumn of 2008, a full year into the financial crisis, when it was actually becoming difficult to get trade credit for shipping, the Tories' headline economic policy was a tax giveaway off stamp duty.

Meanwhle, I see "Jackart" is arguing that the lack of a sterling crisis is evidence of one, presumably between spraying shark repellent around his house - it must be working, because he's not had a shark in the house for years - and looking for weapons of mass destruction in Iraq.

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