Conservative opportunism on pounds weakness….
It didn’t take long. Following on from speculators attacks on the Euro and Greece it looks increasingly like Sterling is the next target. Recent performance is described as ‘jittery’ and as Andrew Neil blogs:
The pound continues to languish at under $1.50 as I write this morning and the markets are full of speculation that it is likely to go lower, with talk of it heading further south to $1.40 or even $1.30, which would be a recent historic low.
Officially the reason that is given is the ‘uncertainity’ over the prospect of a hung parliament. However, the reality is that this is a pretext; the Financial Times reports:
Figures revealing speculators have built up record bets against the pound added to pressure on sterling.
Lets quite clear: these speculators are parasitic and their actions are designed to maximise their own profits whatever the price people pay in jobs, livelihoods and the damage they do to nations and societies. Meanwhile, the Conservatives are doing their best to make political capital out of the situation; saying that the choice is between ‘strong Conservative government’ and the ‘economic damage’ of a hung parliament.
George Osborne took things one step further:
Mr Osborne told his party’s spring conference at the weekend that there would be “a rush for the exits” if markets thought Mr Brown might win the election.
Is this the same Conservative Party that receives shed loads of cash from City firms? The sort of firms that are, in fact, ploughing money into betting against Sterling? How very coincidental; you wonder what Osborne will be doing to curb this kind of speculative activity. The answer is, of course, not alot and this is an area that Labour should exploit. It should announce that part of the new economic settlement following the crash will be that it will spearhead an international effort to curtail speculation against currencies the continuation of which is in no nations interest.