British Pound Panic Selling, Counting Down to Bankrupt Britain

The British Pound continued to plunge to new lows in response to the latest step taken by Gordon Brown in effectively bankrupting Britain to win the next election, which is to under-write the toxic bad debts with an another tax payer down payment of £200 billion. This is on top of the £800 billion already committed towards the bailout of the banking sector that began in September 2007 with the initial £2 billion emergency loan to Northern Rock Bank. As you can see we have come a long way from £2 billion in September 2007 to today's £1 trillion, a truly huge number that amounts to £34,000 per UK tax payer, how much will it cost Britain to service such a liability? This is still but the early stages of Britain's road to bankruptcy and currency collapse as my earlier analysis pointed out in November 2008 - Bankrupt Britain Trending Towards Hyper-Inflation?

However the government, Treasury and Bank of England are failing to recognise that the markets are not going to hang around for bad debt statistics to materialise, but will move ahead of future expectations by discounting further borrowings and bailouts. Therefore the British Pounds reaction is not so surprising as the currency sliced through the £/$1.40 recent trading floor and through the original Bear Market target of £/$1.37.50 set some 6 months ago to a 23 year low of £/$1.36. As the below graph illustrates the currency collapse has been truly staggering, sterling has collapsed from £/$2.11 to just £/$1.36 in just over a year.

More and charts at: http://www.marketoracle.co.uk/Article8389.html