Friday, 5 August 2011
We are on the edge of a financial vortex
It’s not good enough when the Foreign Secretary William Hague says the Tory/Liberal Coalition Government is ‘‘fully functioning’’ despite the Prime Minister David Cameron his deputy Nick Clegg and the Chancellor of the Exchequer George Osborne all being on holiday as whilst the global financial markets closed for business after a week of losses equalling more than $2.5tn (£1.53tn) Wall Street has losses of over $2tn over the last fortnight. In Britain, yields on benchmark 10-year gilts fell to their lowest level since 1946 and the FTSE has fell for six days in a row losing more than 11% of its value equal to £164bn. There are increased fears that Italy and Spain, the Eurozone’s third and fourth largest economies may default on their debt repayments and require EU bailouts.