Confound Dollar Compounds Pound’s Dive

Soaring US dollar may be king over the British pound for 1st time as latter falls to its lowest level since 1985. Will new PM Liz Truss be another Margaret Thatcher & save Britannia? Wait. Wasn’t the Iron Lady trashed for “pain no gain” governance? Even Lloyds of London wouldn’t take a bet on the pound now?

Unfortunately, the UK's current economic plan ain’t working any better than in US. Diff? After WW II, global recessions always have investors rushing to US dollar safe haven. Per a WSJ report: “Investors [in UK now] see increased odds that the pound will tumble below parity with the dollar, something that hasn’t happened in their more than 200-yr trading history.” The pound fell 0.3% Monday in Asian markets and that sterling’s “descent is in part a side effect of the relentless US dollar rally, which has driven both the euro and Japanese yet to multidecade lows in recent days.”

A looming global recession and energy crisis, especially with the world's progressive governments’ simultaneous war on fossil fuels – the newspaper reports, e.g., that the Biden Administration has issued the “fewest” exploration licenses in memory – are primary reasons for the Uk's own downturn. But, as the WSJ points out, “the problems are also homegrown.” The UK’s energy “transition” policies are contributing to a global ”energy crunch that threatens to leave many households unable to pay their bills this winter.” And, the Bank of England, kinda like the US Federal Reserve Bank here or central banks on the mainland, has/have been unable so far to “control sky-high inflation,” thereby “compounding the pound’s weakness.” Will Truss have a better plan than disgraced PM Johnson? If so, other than promised payroll & corporate tax cuts as well as a rollback of ruinous green transition policies, she isn't offering many details as yet.

Davd Soul