Glad to read that “the pound has risen above $1.60 for the first time since November, reflecting reduced fears over the outlook for the UK economy”. The BBC further trills that “Signs that the UK economy could be over the worst of the downturn have prompted investors to shift away from dollars, which are deemed a safer investment. Currency markets reflected a more optimistic tone from business organisation the CBI. ” I suppose one could suggest that the weakness of the dollar is more of a feature of Obama’s hapless handling of the American economy but that would be to criticise he who must be fawned over so better to present this as proof positive that Prudence has solved our economic woes.
THOSE GREEN SHOOTS OF RECOVERY SPOTTED AGAIN..
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With General Motors about to declare bankruptcy, with continuing very large rises in US unemployment, and with US tax revenues down over 30% for April implying even more horrendous borrowing – it is hardly surprising that the dollar takes a knock.
And It could well take more knocks – raising questions about Obama’s economic competence, his appalling spending and borrowing splurges and his direct interference with US industries . But the BBC won’t tell us that one.
One view is that the “recovery” of the £ and FT100 simply reflects a previous under-valuation caused by relative panic at the time.
Here’s an FT article today pointing out how grim the US economic oulook is – made far worse by Obama’s actions :
http://tinyurl.com/po6n3j
And on the economic front, the BBC neglects to mention that among the main beneficiaries of Labour’s car scrappage subsidies are the Poles who build the Fiat Pandas in Poland.
‘Polish jobs for Polish workers’, courtesy of U.K. Labour government.
The financial spot on the Toady programme around 6.30 this morning was a revelation. The presenter of the spot was most miffed that as he had been writing an item about the wonderful recovery in the £ against the $, green shoots and all that, the market pulled the rug from underneath him and the pound dropped 1.5 cents!
I’m beginning to think a memo must have gone round encouraging green shoots items wherever possible, or am I just being cynical?
Gerald Brown
The BBC is clutching at straws. Which are brown and dead – not green ! Yes, it was hilarious the way the £ reversed itself downwards against the $.