UK Debt Exceeds $1.3 Trillion
UK government debt has risen to a record £799 billion (USD$1.3 trillion) and is 56.6 percent of total UK Gross Domestic Product (GDP). This is the highest debt to GDP ratio since records were kept starting in 1974. More
Bernanke: Fed To Deal With Inflation Once Economy Rebounds
In an article for the Wall Street Journal, Federal Reserve Chairman Ben Bernanke outlined what amounts to the Fed’s fiscal stimulus “exit strategy”.
“Accommodative policies will likely be warranted for an extended period,” Bernanke noted in the article, but added that “at some point, however, as economic recovery takes hold, we will need to tighten monetary policy to prevent the emergence of an inflation problem down the road.” More
Citigroup Predicts Weaker Dollar
In a recent client note from analyst Jeremy Hale, Citigroup states that the U.S. dollar could weaken against the euro, the yen and the Australian dollar. The euro could reach $1.43 in the next three months and possibly $1.45 in six to twelve months according to the note. More
Rising British Deficit Drags Down Pound
A rapidly growing national debt and government’s increasing reliance on deficit financing to cover monthly operational costs, pushed the pound to $1.6431 as of 10:57 a.m. in London, from $1.6547.
“The question mark over public finances remains a short- term negative for sterling,†said Jeremy Stretch, a senior strategist at Rabobank International in London. “It’s hardly likely to boost sentiment with risk appetite†waning, he said. More
