The Pound is slipping against a basket of foreign currencies, the reason this time? – concern about who might win the forthcoming election, and their ability – or willingness – to address the economic problems in the UK.
These ‘concerns’ are pushing Sterling down in value, which then gives cause to another concern; the UK might loose it’s triple A credit rating; which then gives rise to a concern about our ability to pay increased loan charges – which we might default on, which gives rise to a concern about our ability to… you get the picture…
It is of course absolute bo**ocks; in many ways the UK’s economy is better, and certainly no worse, than much of the USA and the EC. The only difference is that we are more exposed than the USA and the EC, because we are smaller and our currency can be an easy plaything for ‘market forces’.
The people who run these ‘markets’ only make money when things move – up or down – no matter which, so if they won’t move on their own, it is advantageous to start things moving – gossip, tittle-tattle, badly informed opinion, etc etc, is all that is required.
Is the UK going to loose its AAA rating? – doubtful, will the UK default on a loan? – very unlikely, we are not Iceland.
When the Romans ruled most of Europe, economics was much simpler; but they too were troubled by the shenanigans and wheeler dealings of a few. In particular they had a dread of inflation; considering that it would make the Empire ungovernable if citizens could not afford food and other basics.
Their solution? – the death penalty for merchants who were found to be profiteering or inflating prices with no reason… Makes you think doesn’t it…