Ken Clarke attacks Labour economic policies
In a move which is sure to set the cat amongst the pigeons, Ken Clarke has attacked Labour Party economic policies amid suggestions that investment markets could suffer if Gordon Brown is re-elected. As a former Chancellor of the Exchequer Ken Clarke has knowledge of economics and investment markets which few others can match although many believe his comments regarding potential investment market reactions to a Labour Party election win is "over the top".
He specifically mentioned continued pressure on the UK currency which has struggled over the last few days amid concerns about the UK budget deficit and fragile nature of the economic recovery. In many ways Ken Clarke's comments have given many investors a reason to "go short" on the UK currency and UK investments, injecting yet more confusion into the markets.
The truth is that investment markets are more than capable of making up their own minds regarding the UK economy and UK finances but scaremongering by the likes of Ken Clarke in the run-up to a general election could be seen as a step too far. It will be interesting to see how the investment markets and currency markets settle down in the days to come because concerns about the state of the UK finances have now returned to the surface.
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