What is Kwasi Kwarteng really up to? One answer: this is a reckless gamble to shrink the state
27/09/2022
In the US they call it ‘starving the beast’ – cut taxes and, as revenue decreases, you create irresistible pressure for austerity.
THE Tories, by the time sterling hit an all-time low of $1.0327 on Monday, had from their political driving seat seen a fall of nearly one-third in the pound’s value against the greenback since June 23, 2016.
Brexiteer MP overheard talking about markets on night of 2016 referendum vote. / Chancellor Kwasi Kwarteng reportedly said “who cares if Sterling crashes” in the immediate aftermath of the Brexit referendum result in 2016.
"I am very fearful for Britain on the path that it is travelling." / Former US Treasury Secretary Larry Summers says Brexit and Liz Truss’s extreme tax cutting is turning the UK into a “submerging market”.
Ex-US Treasury chief fears for UK becoming ‘submerging market’. / “Between Brexit, how far the Bank of England got behind the curve and now these fiscal policies, I think Britain will be remembered for having pursuing the worst macroeconomic policies of any major country in a long time.”
The pound’s slump shows little sign of ending amid the ongoing story of dollar strength as well as concerns about UK economic policy. The latest leg down has taken its decline so far this year to 17%, surpassing the 16% loss it suffered in 2016, when the country voted to leave the European Union.
High inflation, low investment confidence and a weaker currency make the UK an attractive target for European suitors.
THE pound has fallen to its weakest level against the US dollar since 1985 amid fears the UK is heading for a lengthy recession.
Former Bank of England policymaker Adam Posen insists 80% of high price growth is due to Britain leaving EU.
Spiralling inflation, crops left in the field and travel chaos: 10 reasons Brexit has been disastrous for Britain
03/02/2022
As small businesses crumble, shelves get emptier and the care-worker shortage intensifies, life outside the EU is having a dire effect on many of us. Why aren’t politicians talking about it?
Brexit after Boris
31/07/2022
Boris Johnson became prime minister on the promise that Brexit would bring prosperity and pride. Did it?
In historical terms, however, those transgressions will end up being little more than footnotes. Viewed from afar, Johnson’s greatest failing is liable to be what he hoped would be his glorious legacy: Brexit.
We desperately need to rejoin the single market and customs union, whatever the former PM thinks.
Boris Johnson’s government faces deep economic problems. / UK lagging behind major peers on productivity and investment. / “... From a 16% devaluation of the pound to an eye-watering slide in trade and investment, Brexit’s impact is plain to see. The data have only reinforced our view that life outside of the EU would leave the UK worse off.”
Yes, that headline is correct. The UK’s trade performance this year fell to its worst level since records began in 1955. And the cause, according to analysts and a headline article in the FT today – Brexit.
Immediately after the referendum, sterling depreciated. This brought forward the impact on household incomes of what would otherwise be a slow burn change for the UK economy.
The UK will be stuck with searing inflation for years because of Brexit, according to strategists at Wall Street’s top banks.
The economic fallout from leaving the EU is becoming all too apparent.
THOUSANDS of construction workers are needed in Scotland, according to new figures from the Construction Industry Training Board (CITB).
Thanks to Brexit, sterling is becoming a risky bet for some investors.
Brexit Britain: Here's what the financial markets tell us about the economy effects of leaving the EU – Professor David McMillan
27/01/2022
A year after Britain left the European Union, you could be forgiven for thinking the current economic gloom has nothing to do with Brexit, and everything to do with Covid.
The pound has settled above its recent lows vs. both the USD and the EUR, but it remains in a clearly weakened positioned. EUR/GBP is still seen at 0.85 by year-end while UK politics concerning the issues of Brexit and sleaze may impact the performance of the pound, economists at Rabobank report.
Higher yields are helping the U.S. currency; not so for sterling, which is coming adrift from the developed world entirely.