Pounding the pound

The Times editorial this morning calls for a one point interest rate cut. THIS WOULD BE A DISASTER! The nation's disturbed and distressed Prime Minister, Gordon Brown, frequently responds to fully justified accusations that this is his very own BUST by replying that at least interest rates are not at 15 per cent. They are not higher, much higher, than they are today because HE lacks the balls. The slump is due to Brown's policies as Chancellor, a way out requires a combined operation of reduced debt, reduced house prices and a lower exchange rate. The latter thanks to the freedom of the markets has been sufficiently achieved in recent weeks for any further drop at present to be counter-productive. Interest rates must rise, a lowering of interest rates today will require bigger increases in the future. Any drop will NOT result in cheaper mortgages and nor should they as house price falls have nowhere near run their course. Items so far destroyed by this Government:- Great Britain, Parliamentary Democracy, Privacy and (by forcing the Queen to sign the Lisbon Treaty rejected by Ireland) the Monarchy. Today the pound sterling is in danger of being added to that list and most of the MPC must know it!