It has happened again. It just took a bit longer this time. Once
again, a Labour government has ended up with a run on the pound.
Sterling has this week fallen to an all time low against the Euro. Yes,
it is lower now than it was the aftermath of Black Wednesday when
Britain came out of the Exchange Rate Mechanism. The incompetent
mistakes of that time have now been more than matched by Labour.
Since the recent peak in 2007, the pound has tumbled by 21 per cent
against the dollar, by a quarter against the Euro and a massive 46 per
cent against the Japanese Yen. This gives the lie to the idea peddled
by Mr Brown that the recession we are now enduring is all a matter of
international problems. The foreign exchange markets are telling us
clearly that this crisis is worse here than elsewhere – that the
government here got it more wrong than any other major country.
A run on the pound has happened every time Labour has been in power. It
is in the party’s DNA. In the previous Labour administration from 1974
to 1979, the pound collapsed against the Deutschemark – from DM6.05 to
DM3.89. The time before that, between 1964 and 1970, the pound slumped
from DM11.10 to DM8.74.
Every time we have a Labour Government they screw the economy and cause a devaluation of our currency. Crash Gordon would have you believe we’re innocent victims a worldwide problem, and indeed there is a worldwide problem, but the markets know that the UK is worse placed than any other country except perhaps Iceland and thats why our currency is collapsing faster than any other.
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It didn’t need a rocket scientist to work out where Gordon Brown’s spending would lead. He unravelled all the public sector reforms brought in during the ‘Thatcher Years’.The next timebomb, ie the public sector pension liability, is timed to wipe out any possibility of an early return to fiscal stability.The unpallatable truth is unless we return to the zealous reform of the ‘Thatcher Years’ our economy is doomed to banana republic status.
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