The Chancellor, Alistair Darling, will today insist that the country must continue to spend its way out of the economic crisis. In his Pre-Budget report at lunchtime today it is thought that he is going to announce another spending spree, seeing expenditure next year rise by £30 billion.
It is already thought that the current £830 billion debt pile the Government has already placed the UK under is threatening any genuine recovery, so how wise is it adding to that already huge burden??
Each time we have seen the Bank of England's Monetary Policy Committee release money into the economy in the form of Quantitative Easing we have seen Sterling exchange rates tumble, and I see no reason why this announcement in the Pre Budget Report will not have a similar effect.
This morning has already seen Sterling lose significant ground against a basket of currencies, a trend that I anticipate seeing throughout the day.
Why mot drop me an email letting me know your thoughts about what might or might not happen today on sah@currencies.co.uk
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