Gordon Brown risks run on the pound, says George Osborne

eeja

You MUST read this article in today's Times, free online edition.
I am so very pleased that the Conservative party have woken up to the fact that the Brown, Darling King trio of irresponsible big spenders has already seriously damaged our country and economy and are about to destroy it completely ie through a run on the pound with people queuing to exchange their fast depreciating pounds for euros and dollars before it loses its value entirely. If interest rates in UK are brought down lower than those in the eurozone ( for the first time ever ) many economists are predicting this disaster for us all will indeed happen.
As George Osbourne rightly points out, the trio can decide the level of short term interest rates through the BOE but have no control whatsoever of longer term rates which will soon start to rise dramatically . Already Barclays bank perpetual bonds are yielding over 10 percent on the markets

gunnaknow

What do you advise us to do, eeja? Invest in euros? Get a euro savings account?

eeja

gunnaknow wrote: »

What do you advice us to do, eeja? Invest in euros? Get a euro savings account?

My honest advice is sadly not financial but political. If you feel concerned only Parliament and the good sense of our MP'S can keep us from the disaster about to befall us all . Brown is plain and simple doing what he feels is necessary to win the next election and putting our country and our economy at risk in the process.Any financial advice given here would be purely speculative.

eeja

Osborne: Brown's borrowing risks run on the pound

In todays Guardian free online edition.
Recommended reading

jon3001

eeja wrote: »

You MUST read this article in today's Times, free online edition.

Here's the link for those who must read it:
http://www.timesonline.co.uk/tol/news/politics/article5158548.ece

Inactive

George Osborne has the temerity to make critical comment about others.:rotfl: :rotfl: :rotfl: :rotfl: :rotfl:

apt

Yet again Osborne has shown he lacks the judgement and responsibility to be Chancellor. John Smith and Gordon Brown did not talk down the pound when it was last in rapid decline after Black Wednesday. I read this week that Cameron is being given economic advice by his old boss, the Badger, Norman Lamont. Things are bad enough without these new and old Tory clowns running economic policy.

gvlewis

He is NOT talking down the pound. He is simply pointing out the damaging effects of irresponsible borrowing. Quite frankly it is about time.

The markets recognise this country is in bit of an economic mess - this is why the pound has fallen so far already. Adding more debt to the economy will simply cause the pound to fall further. Imports will become more expensive and cause inflation to rise - thus leaving the Bank of England less room to cut interest rates. On top of that tax payers will be saddled with further debt which will need to be paid of somehow - no doubt through higher taxes.

amcluesent

Pension thief Clown has already presided over a far bigger slump in value of the £ than happened when we left the ERM. You won't ever hear that comparison from the complicit BBC.

eeja

gvlewis wrote: »

He is NOT talking down the pound. He is simply pointing out the damaging effects of irresponsible borrowing. Quite frankly it is about time.

The markets recognise this country is in bit of an economic mess - this is why the pound has fallen so far already. Adding more debt to the economy will simply cause the pound to fall further. Imports will become more expensive and cause inflation to rise - thus leaving the Bank of England less room to cut interest rates. On top of that tax payers will be saddled with further debt which will need to be paid of somehow - no doubt through higher taxes.

Three cheers for gvlewis ! Yes indeed it is convention for the opposition to keep silent on such issues. But what are we supposed to do.... shut our eyes and fiddle while Rome is burning !
An interesting point mentioned just now on Sky News...James Calleghan Labour PM , Yes the one whose government went famously to the IMF for help in the 70's ...Dennis Healy being his Chancellor at the time...publicly declared :
''You cannot borrow your way out of a recession'' What was valid then is valid now. Harsh measures are indeed necessary but politically astute Brown will not use these as is curtains for his chance to be elected PM.. a post to which he has never been elected by the public

john_s_2

Harsh measures are indeed necessary but politically astute Brown will not use these as is curtains for his chance to be elected PM.

Correct me if I'm wrong but the next election doesn't have to be till 2010. If things are going to be as dire as you predict then he won't stand a chance in said election. Or are you suggesting it will take more than 18 months for the proverbial to hit the fan?