Financial Markets verdict on UK
Thursday, 04 December 2008 10:39

For most people in the UK it's irrelevant what the world thinks about Gordon Brown and Labour.

Think again!

What the world's financial markets think of the UK and Labour is vitally important. Their verdict is not good.

In December 2007 one great British Pound bought 2.05 US dollars or 1.40 Euros, today (December 4, 2008) that same pound in your pocket buys just 1.45 US dollars or 1.15 euros.

So what!

This really matters, because the UK no longer makes anything, instead we import things. Most of those things are priced in US dollars, so they cost more for us to buy. That is a real problem. Take as an example a mid-priced garment made in China and costing say 25 US dollars in China. In December 2007 that was £12.20; today it's £17.24! That's a whopping 41% increase. Now add to that the costs of distribution and profit, then VAT and you see a massive increase in cost in the shops.

We hear a lot about a weak pound being good for exporters because it makes things cheaper for foreign buyers, yes, it down, but we don't make much, most of our jobs are in services like call centres and banks. We all know what has happened to them, today a Japanses bank said it would be cutting 100 jobs in London.

We need to face facts. We as a country can not afford Labour's lavish social benefits. We need to slash public spending and do it quickly and decisively, nothing less will do.

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