Monthly Archives: October 2008

The government wants to increase spending, and therefore borrowing, to help us out of recession. We need to distinguish between the several different ways in which borrowing will rise in the next few months. Some are inevitable and some are avoidable. Borrowing will rise because: 1. The government is buying controlling interests and shareholdings in [...]

Past Labour governments have ended with a sterling crisis and a borrowing headache. It looks as if this one wants history to repeat itself. Today we are to be told that the government needs to spend and borrow more to help us out of recession. It is curious, when we are also told that we [...]

Today economists have written to the Sunday Telegraph warning against an over borrowed government trying to spend our way out of recession. They are right to be concerned about the rapid build up of debt in the public sector, and the careless attitude towards more debt by the authorities. I have called both for lower [...]

The UK authorities combine blood curdling statements with inappropriate action to handle the financial and economic downturn. Mr Bean, deputy Bank Governor, has gone further than the Chancellor and the Governor with lurid language. Do these people not understand that markets are listening to their every word, and moving prices on the back of their [...]

Over the last few days sterling has fallen dramatically against the yen – from one pound buying 175 yen to only buying 141 yen. The Japanese base rate is 0.5% compared to the UK’s 4.5%. International investors are leaving sterling. It all goes to show that relatively high interest rates do not necessarily keep a [...]

Yesterday the BBC’s business correspondent Robert Peston drew attention to runs on countries that have borrowed too much. He pointed out that Iceland, Ukraine, Belarus, Hungary and Pakistan are already experiencing this, and wondered if South Korea might also fall into such a plight. He told us the first five countries have gone to the [...]

Today the government intends to give banking chiefs a strong tongue lashing on the need to lend more money to small business on sensible terms. This will be very popular with small business. It is all part of the government’s renewed spin offensive. Readers of this site will know I hold no brief for bankers [...]

Today we were meant to debate and vote on our abortion laws. I have had a number of emails from constituents who think this is an important issue, expressing their strong views on the subject. There are pro life MPs wanting to put down amendments, and pro choice MPs ready with their proposals. We now [...]

I drew attention to the 12% devaluation of the pound from $2 earlier this year to around $1.75 as that occurred. In recent weeks the pound has been hovering around $1.71-$1.75 for much of the time. Suddenly, in the last two days, it collapsed to $1.62. Market reports ascribe the sharp fall yesterday in part [...]