Posted on 08/06/2011 9:26:29 PM PDT by Steelfish
Financial Crisis: Bank of England "To Warn Of Slower UK Growth"
Britain's economy is set to slow in the wake of the US's credit rating downgrade, says the Bank of England.
The Bank of England predicts the situation in America will have a negative effect on Britain's economy By James Quinn, and Patrick Hennessy
06 Aug 2011
Sir Mervyn King, the Bank's governor, is expected on Wednesday to reduce its "target range" for UK growth as the world lurches dangerously close to a double-dip recession.
Any slowdown in growth will hit job creation and spark a potential rise in the cost of goods and services, adding to problems for David Cameron and George Osborne.
As America continues to reel from the loss of its top-flight ''AAA'' credit rating for the first time in modern history, The Sunday Telegraph can disclose that US investors sold out of British banks in the last week, precipitating a £22 billion reduction in the value of the top four banks including state-backed Lloyds Banking Group and the Royal Bank of Scotland.
At the same time, China and India, two of the biggest buyers of America's $14.5 trillion debt pile, meted out stern warnings to the world's largest economy – whose debt is now seen as less secure than that of Guernsey. China called for a new global "reserve currency" to replace the dollar – a move branded "sensible" by Vince Cable, the Business Secretary, in a television interview, although he said this would not happen "overnight".
(Excerpt) Read more at telegraph.co.uk ...
He's really hurting their business.
lol!
Dead wrong......he is boosting it.
UK economy was tanking anyway.
That actually kind of not surprises me. China has a huge export market to the USA and the last thing China wants a much-diminished ability to export to the USA, which could collapse the "Big Four" banks in China with horrible results. There's a lot of smart people among that 1.6 billion population and they're waiting around for a real economic disaster to happen.
The last sentence should have said "There's a lot of smart people among that 1.6 billion population and they're NOT waiting around for a real economic disaster to happen."
However, the US leads not only in political terms. As the old saying goes, Wall Street sneezes and London catches a cold. Your man Obama is not only running the US into the ground, he seems to be bent on taking the rest of us with you.
You are correct, but it is tanking. No politician is going to stand up and take credit for a tanking economy. They will blame whatever they can for their failures. UK's failures will be blamed on US credit downgrade.
Perhaps some leaders from other countries will stoop so low as to blame a tsunami, or an earthquake, or perhaps even a Tea Party for their economic malaise. Yeah, I know. That last statement is too far-fectched for anyone to believe. Those words will never be spoken.
The fundamental fact is that all the worlds economies are now very tightly tied to each other, and if one goes it affects all the others (some not as much, obviously). UK politicians make errors, and sometimes they are not able to make the correct moves for various domestic political reasons, but even if they get everything right the economy might still tank, because so much of what happens in the global economy is beyond their direct control. US politicians have got more room for manoeuvre, because the US economy is a bigger player.
———He’s really hurting their business. -—
Ha..... The business of the Chicaps is being hurt. Do they rub out Presidents?
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