DislikedOsborne: UK has run out of money
The Government 'has run out of money' and cannot afford debt-fuelled tax cuts or extra spending, George Osborne has admitted.
http://www.telegraph.co.uk/news/poli...-of-money.htmlIgnored
However, from an economic point of view a fast appreciating currency is not good news. China is doing well because the yuan is seriously undervalued, Japan is trying for some time spending billions to devalue its currency (without much success) because its exports are becoming more expensive in the world market, Germany is doing great recently with a weak Euro etc point to a stable but weak currency is better for UK. This would enable the UK to kick-start the private industry led recovery by manufacturing more in UK rather than importing everything from outside. An industry led recovery will boost employment, increase tax revenues for the Govt, reduce budget deficit, reduce external trade deficits etc. This is what the UK Govt wants and will try its best to achieve. For these reasons, I would suggest the GU range will be 1.40 - 1.70 for some years to come (1.55 average).
G/L
how could you know?
