Ask HN: What Is Happening in the UK?
The UK imports large amounts of energy and other things essential to its prosperity. The UK has a current account deficit which means it does not have enough of the dollar to cover for its imports.<p>It has solved this problem over the years by borrowing and becoming a haven for investment to cover up the shortfall.<p>Now we have a bat shit government that says we need to lower taxes and borrow a boat load of money to tide over the energy crisis. The markets don’t see how this borrowing will improve the UKs ability to earn more dollars (or the govt to raise more taxes).<p>In essence the market realizes that the UK is going to repay its loans by printing money.<p>Hence the pound tanks in anticipation of it. One way to stop this is to raise interest rates and pull pounds out of circulation but the government is terrified of popping the real estate bubble.<p>TL;DR - The pound will keep falling and the UK will lose its social services but don’t take this as investment advice.