"UK can devalue and print money, the UK will not default, UK will not need IMF"

Discussion in 'Wall St. News' started by ASusilovic, May 11, 2010.

  1. Michael Gallagher, director of research at IDEAglobal, said he believes the UK will be alright due to its ability to sell government bonds internally.

    Steven Barrow, the head of G10 Research at Standard Bank agreed.

    “I am confident about the prospects for the pound,” Barrow said. The difference between the UK and Greece, according to Barrow, is that Britain has more room for maneuver.

    “The UK can devalue and print money, the UK will not default, the UK will not need the IMF,” he said.

    But with talks over who will form the next UK government dragging on, Fry is adamant that such analysis is nonsense.

    “I can’t believe (the UK) can avoid trouble," he said. "The current coalition talks are like arguing over a birthday cake. Once they decide how much of the cake they get they realize no one bothered to bake the cake.”

    With a lot of money needing to be raised over the coming months and years, UK borrowing costs are going to move sharply higher, he argued.

    “My big fear is that after (Chancellor of the Exchequer) Alistair Darling refused to support the EU/IMF/ECB bailout of the euro zone bond market, the euro zone may stand by and do nothing when the UK gets into trouble,” he said.

    http://www.cnbc.com/id/37079126

    Devalue ? Sure, why not ? Let's say in 5 years parity to USD ?
     
  2. ipatent

    ipatent

    Internally, lol. Just wait, the Fed will be buying gilts before long.