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UK ECONOMY KLAXONS ARE BLARING EMERGENCY ‘When you get to the point that you have to borrow money to service the debt and interest rates are rising, so that debt-service payments rise, so you need to borrow more money to pay them, you’re in what the markets call a death spiral Financial Times Tuesday January 21 2025.

From September to December 2024, the pound sterling exchange rate fell by 10%, and from the beginning of 2025, it has lost another 5%. Finance Mail found out what will happen to the British currency and whether we should expect ‘London’ black swans (rare and unpredictable) .

Since the beginning of 2025, the British pound has been the weakest currency among developed countries. The country’s economy has shown near-zero growth throughout 2024, and in previous years, Britain has repeatedly slipped into technical recession (GDP has contracted for two quarters in a row).

According to Vladimir Rozhankovsky, Managing Director of Trade123, ‘the British pound, to paraphrase the famous saying of the leader of the world proletariat, has become a mirror of the British revolution.’

RIGHT. DEBTOR’S REVENGE Michael Walsh. Sales are expected to soar as the Pond Sterling plummets like an unopened parachute.

‘The pound reflects the extreme instability of the British political system, which the world has not seen for a hundred years, roughly since the old Liberal Party ceased to exist as one of the two dominant political forces along with the Conservative Party, the Whigs and the Tories. Now something like these processes is happening to the party,’ the economist noted.

In his opinion, the head of government in Great Britain changes more often than the coaches of British football clubs. The situation in the country was worsened by both the exit from the EU (Brexit) and pressure from US business.

As a result, London ceased to be one of the main financial capitals of the world and gave way to Hong Kong in second place after New York.

‘Hidden unemployment is growing, contract vacancies dominate, especially among young people. All this points to the fundamental weakness of the pound, which cannot be overcome by short-term political decisions.

Britain needs new levers of influence in the world, but it is not yet clear where it could apply them. At the moment, the zones of influence are already divided between the US, China and BRICS.

Symptom of a global disease: The weakening of the British pound is indeed a serious indicator of economic problems not only for Great Britain but also for the global financial system as a whole, believes Gennady Fofanov, president of the investment platform InvoiceCafe.

‘The overall 15% fall in the exchange rate over a relatively short period reflects, in our view, a whole range of negative factors, including structural problems in the British economy, geopolitical tensions and changes in global financial flows,’ he explained. PLEASE REACH OUT TO OTHERS BY SHARING OUR STORIES

DEBTOR’S REVENGE By Michael Walsh the man who turned the tables. The easy-to-use guide shows you how to write off your debts including your mortgage, keep your job and family and possessions and make a debt-free fresh start. Suitable for UK buyers. LULU and Amazon. CLICK PIC or LINK. https://michaelwalshbooks.wordpress.com/