My take on Britain’s worsening economic crisis

The post-Covid economic situation seems to be getting worse by the day. Just this week, the British Pound or Sterling hit a record low against the dollar (£1= $1.03). The bank of England plans to further increase interest rates. Some financial companies have stopped giving out mortgages and loans because of this increasingly uncertain financial outlook. Panic has gripped the City of London, which is a global financial centre.

This is happening in the midst of the highest inflation rate in recent memory, which has triggered a spiralling cost of living. The poorest are hardest hit. And people have to choose between eating and heating. The energy crisis affecting Britain and many other nations still dominates the news. The war in Ukraine, Putin’s determination to use oil and gas as a weapon against the West, further complicates the situation.

But how did this happen and is there a way out? Most financial experts would tell you that the worst is not yet over. The country is still bracing for bigger shocks. Britain’s Exchequer, Kwasi Kwarteng, has not yet given a clear plan to fix this problem, and his so-called mini-budget seems to be backfiring already.

This raises the question: does Britain need a change of leadership and a radical plan to fix this? In other words, does Britain need a saviour at the moment? In th light of what I just discussed, I genuinely think yes.

 

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