What will happen to the UK currency in the short to medium term?
As the UK economy is officially in recession there are serious concerns about the future direction of the UK currency. As UK national continues to move higher and higher, with some experts suggesting it will end up anywhere between £1 trillion and £3 trillion, domestic and overseas investors seem set to shun the UK for the foreseeable future. It has also been revealed that an influential select committee of MPs have suggested that the Treasury needs to clarify the potential liabilities for the UK taxpayer with regards to various rescue plans and fiscal stimulus packages.
The problem which investors have at the moment is the fact that the UK Treasury is not willing or not able to clarify the maximum liability which UK taxpayers have taken on. Speculation continues to mount that debt will end up anywhere between £1 trillion and £3 trillion when in truth nobody really knows. There is even speculation that the UK government is not able to clarify the exact liability which it has taken on because in many instances it is an unknown entity.
Until there is some clarification regarding the potential liability for the UK taxpayer, it would appear both economy and the stock market will continue to suffer.
Share this..
Related stories
MPC appears split on extension of quantitative easing programme
The Bank of England MPC (Monetary Policy Committee) appears to be split on the subject of quantitative easing and a potential extension of the ongoing program. Last month's meeting appeared to give a rather upbeat view of the UK economy and the future success of the quantitative easing programme, although the last few days have seen this upbeat stance start to show cracks.
Interesti...
Can Alistair Darling hold on to the position of Chancellor of the Exchequer?
Despite the fact we are only a few months away from the next general election there is serious concern this evening that Alistair Darling has made a mess of the UK economy and the UK banking crisis. He is under attack from all sides after today announcing a massive change in the UK banking sector which will effectively take the industry back decades. While there are reasons for dismantling some of...
Read MoreWhy is the current recession unlike so many others?
As the UK and the worldwide recession continues unabated many people are starting to ask how this particular recession is different from the norm and what exactly is going on. In essence the ongoing worldwide recession is due in the main to a significant reduction in business equity and a sell-off in markets such as the property sector. This has pushed the general wealth of consumers around the wo...
Read MoreMarks & Spencer set to announce difficult trading conditions
As we await the deluge of New Year trading statements from the retail sector there are concerns that Marks & Spencer will deliver a downbeat report on the Christmas and New Year period. There is also speculation that Marks & Spencer chief executive Sir Stuart Rose would be forced to reduce the company's dividend payment to shareholders as a means of retaining liquidity within the business. In many...
Read MoreUK base rates held at 0.5%
It has been revealed in the last hour that UK base rates are to be maintained at 0.5% with the likelihood that we have reached the bottom of the interest rate cycle. Despite rumours of unrest within the MPC it appears that the vast majority are of the belief that quantitative easing is the way forward in the short to medium term and the benefits of interest-rate reductions have been exhausted.