The United Kingdom's shambles of an economic and financial situation is being held together by the understanding that in the near future there will be a return to government of a sane Conservative administration. Brown will be gone and all his madcap economics and hubristic calls for more spending with him. But the Pound is down to 1.06 against the Euro and falling as investors bail out in the face of his intransigent refusal to resign even with the political and institutional meltdown that is also taking place in the UK during his home grown economic and financial disaster.
Now the goal of the Lisbon Treaty ratification has moved further away with the Czech government demanding opt outs to major aspects of the Treaty; and althought the Czech Constitutional court has dealt with two out of three of the constitutional challenges to Lisbon it has not lifted its prohibition on President Klaus signing the ratification documents. There is a limit to what investors can be asked to risk on holding Brown's regime together just until the Treaty is through. On the first day of the new session of the UK parliament members of the Lower House are receiving letters demanding the return of ill-gotten expenses while members of the Upper House stand revealed in all their expenses scams and the most senior legal officer of the Brown junta is being investigated by her professional body for bringing it into disrepute; yet she refuses to resign her office and is backed in this act of brazen hussiness by Brown.
If the Brown regime denies a long overdue dissolution and general election in these circumstances, the doubt must arise in a cautious mind that they would deny it in any circumstances. And confidence that there will be an incoming Conservative government melts away.
If we don't have a general election at once the instability of the United Kingdom will be too high a risk to take, even for those who have propped up Brown in the interests of advancing post democratic European and global governance..
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3 comments:
From a personal standpoint I need to know what policy direction we are to have. The Tories and Labour now have very distinct policies - Labour wet, Tory dry.
If the Tories are going to form the next government I won't rinse all my cash in fear of high inflation, but if Labour are going to carry on then I will most definitely be getting out of cash!
I think an election now is much needed.
I'm not at all sure what Labour stands for any more, Blue. I hear Brown obsessing on about 'investment' and expenditure, and no cuts that really cut, and not disturbing the 'recovery' but he's the only person in the Labour regime who does. From the rest, apart from Darling a bit, there is total, ominous silence.
Which silence is due to them quite literally not knowing what to do in the face of having a madman in the bunker and a praetorian guard of anti democrats around him while he prevents any expression of democratic will.
You are right in supposing that the markets are prepared to go along with Broon's insane borrowing plans only on the assmption that he'll be gone in eight months and wiser counsels will then prevail.
Any attempt by him to delay the election, for whatever reason, will cause and instant rush for the exits - the pound would collapse, interest rates would shoot up, etc etc.
However unlike you I do not feel that any such outcome is likely. Even Brown will not openly attempt such a coup - for so it would be.
Keep calm and carry on, the election will happen, and he will be ousted - I hope. False dawns of economic recovery will multiply, the Tories will be endlessly smeared, the Hartlepool prestidigitator will go into overdrive: but I really think the British people have finally seen through NuLab. Fingers crossed.
@Blue, not sure I buy your snap election prediction, any reason for it at this juncture?
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