I'd just like to throw out a theory for discussion given the present crazy situation - a situation that is becoming more and more bizzare by the day. Now we have councils fighting over who gets the most finacial compensation. You couldn't make this up if you tried.
Now the government places a statement in the media bracing the public for a no deal Brexit - really.
The theory centres around the fact that the Tory's continuous threats of lockdowns results in a decline in the stock market, yesterday, it started 2% down after more threats the day before. Given the mis-information being provided, why then, if the givernment is so concerned about the economy caused by closures, persist with ever more threats that now seem to be coming from every senior minister.
Personally, I think the objective of the government is to devalue the currency at a time when the UK seeks new overseas trade markets, the so called "Australian" system of trading. So why devalue the currency? There are three beneficial reasons why, 1 boost exports, 2 reduce trade deficits, and 3 reduce the cost of interest on govt debt, and while I don't deny the existence of the virus, it's minimal real impact has been discussed at length within this forum as has the governments, quite frankly, bloody awful re-action.
Nevertheless, the timing of it provides a means to altering the countries economic position and while there are downsides to devaluing a currency, as there is with all economic reasoning, it seems odd that while the UK stock market continues to stumble and blunder along, two of world's most powerful stock markets, the US and China, have not been adversely affected. The US markets are trading near to where they were pre March and China is about to become the first stock market valued at a trillion dollars.
Unfortunately, devaluing a currency doesn't happen in isolation. An historical example is New Zealand which devalued its currency, by 20% in 1984, albeit in more extreme way, and under a Labour govt, I might add. The turbulance created, caused shock waves through society some of which exist to this day, because it is not possible to reduce currency value without considerable restructuring of government departments, civil service, restricting incomes and benefits, privatisation of as many government sectors and services and the decline in the value of goods and services produced resulting in rising unemployment, deteriorating mental health, reduction in jobs with little to no retraining. Perhaps the worst aspect however is the division of society and promotion of mistrust within communities and between neighbours.
All of this may sound familiar because already government has suggesting "dobbing" in neighbours who don't comply with current "regulations".
Attracting trading partners to make the country competitive to overseas markets is fine but trading is a two way thing and unless infrastructure and standards to safeguard civilians and society isn't put in place, the quality of those imported goods, may become a real concern.
Think you might be on the money 😉
Notice, man-of-the-working people Sir Keir had every opportunity particularly through May-July to hammer some kind of serious opposition to a potential [arguably now, probable] WTO Brexit...he did not. In one interview he simply said something to the effect, "well let's see how the Government gets on with negotiations.."
this is not a guy who sounds particularly unhappy with the prospect of leaving on 31 Dec without a guaranteed deal. Suspect it's because he's a Trilateral Commissioner first, Labour MP second, and leaving the EU in this manner could prove fruitful, should the aim of the game be, as you suggest, to put severe pressure on Sterling.






