Election ‘Chaos’ In UK Could Trigger ‘Lehman Moment’ For Pound
By: GoldCore
GoldSeek.com
Friday, 24 April 2015
– UK economy a ’timebomb’ and will explode after election – Albert Edwards
– Telegraph warns of “Lehman Moment” stemming from possible election chaos
– Currency traders view pound as being particularly vulnerable
– Latest data shows UK poised to slip into deflation for the first time since 1960
– Polls place Labour and Tories neck and neck as election looms
– Hung parliament may force either side to enter coalition with potentially disliked partners
– Outright majority for either side would also lead to further uncertainty
– Political uncertainty may impact sterling and UK assets
– UK has massive debt and vulnerable to Eurozone debt crisis
With the British general election due in just under two weeks on May 7, concerns are growing about the outlook for the UK pound after the election and the long term outlook of the UK economy due to the extremely high levels of debt – particularly in the private sector in the UK.
UK debt has continued to rise throughout the recovery and has soared to an eye-watering £1.48 trillion. In recent days, a slew of foreign exchange analysts have warned that the pound is vulnerable to falling in value.
London’s Telegraph warned last week that election ‘chaos’ could lead to a “Lehman moment” for the pound. The pound has been in steady decline since July apparently due to traders pricing in uncertainty around the election. It is currently trading at $1.51, down from $1.71 in July.
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