My suspicion is that the currency turmoil, at least, will be temporary. Though whether it is temporary, and how temporary it will be depends on finding a politician with the balls to put economic demands ahead of his/her ego. So perhaps not very likely!
Clearly, with our level of indebtedness interest rates will stabilise at a much higher level after about 18 months. I reckon somewhere between 6% and 8%. Assuming the economy is rebuilding by then (big assumption), the pound will be appealing to currency traders, so the value will go up.
However, unless the pointy-heads in charge admit that our national debt is 103% of GDP instead of 45% (they discount public sector pensions and PFI demands....a bit like claiming your personal debt doesn't include your mortgage and car loan) - and actually do something about it, things will get worse.
The sad thing is that labour governments always run out of money and have never understood economics, and tory governments always end up imploding.
I'm voting for snoopy...
Clearly, with our level of indebtedness interest rates will stabilise at a much higher level after about 18 months. I reckon somewhere between 6% and 8%. Assuming the economy is rebuilding by then (big assumption), the pound will be appealing to currency traders, so the value will go up.
However, unless the pointy-heads in charge admit that our national debt is 103% of GDP instead of 45% (they discount public sector pensions and PFI demands....a bit like claiming your personal debt doesn't include your mortgage and car loan) - and actually do something about it, things will get worse.
The sad thing is that labour governments always run out of money and have never understood economics, and tory governments always end up imploding.
I'm voting for snoopy...
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