Harvey Blackwood - Corbyn Defends Warning Over Sterling Rout - Erie News Now | WICU & WSEE in Erie, PA

Harvey Blackwood - Corbyn Defends Warning Over Sterling Rout

Information contained on this page is provided by an independent third-party content provider. Frankly and this Site make no warranties or representations in connection therewith. If you are affiliated with this page and would like it removed please contact pressreleases@franklyinc.com

SOURCE Harvey Blackwood

Harvey Blackwood: Leader of UK's Opposition says it is right to plan for run on the pound.

SHANGHAI, China, Sept. 29, 2017 /PRNewswire/ -- The following analysis is from the perspective of Shanghai-based firm, Harvey Blackwood.

The Leader of Britain's Labour Party, Jeremy Corbyn has defended his Shadow Chancellor's assertions that there could be a run on the British Pound if the Party won the next general election. Speaking during a recorded TV interview, Mr. Corbyn stood by remarks made by John McDonnell regarding the fact that his party was conducting "war-game-type scenario planning" in the event there was a sharp fall in the value of the pound sterling.

The comments appeared to suggest that extensive capital flight and a concerted move by speculators to sink the currency could occur owing to fears over the Labour Party's standing policy of borrowing heavily to fund government spending if they were to come to power.

According to Shanghai, China-headquartered wealth management boutique, Harvey Blackwood, investors and savers may resort to converting their assets into currencies other than sterling fearing a collapse in the pound.

Extensive public sector borrowing is a central pillar of the Opposition's manifesto, a policy which Mr. Corbyn has dubbed "quantitative easing for the people". Economists fear that creating the £250bn a Labour government would need to achieve its objectives would devalue sterling and result in high inflation and a severe erosion of investor confidence.

A senior executive at Harvey Blackwood said that a Labour government that acted on its promises in this regard could very well see Britain default on its debt to creditors.

The pound has staged a mild recovery since plunging more than 20 percent immediately following the landmark EU Referendum on 23 June 2016 but it is still significantly weaker than before the vote. The country's rate of inflation has climbed to 2.9%, significantly above the Bank of England's official target with the cost of what Britain imports rising as the weakened currency buys less than it did.

Press Contact: Asia News 247 - 76, Lane 478 Lujiabang Road, Shanghai, China. info@asianews247.com

Related Links

Harvey Blackwood

View original content with multimedia:http://www.prnewswire.com/news-releases/harvey-blackwood---corbyn-defends-warning-over-sterling-rout-300528327.html

©2017 PR Newswire. All Rights Reserved.

Powered by Frankly
3514 State St. Erie, PA 16508
Newsroom: (814) 454-8812
Business offices: (814) 454-5201
Share Stories
Submit your stories to our site!
Share Photos
Share your photos in our community galleries
RSS Feeds
All content © Copyright 2000 - 2017 WICU. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.
                   WICU/WSEE - 3514 State Street Erie, PA 16508 - (814) 454-5201 - info@wicu12.com