FAST FIVE: The Fate Of The Pound Sterling

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In addition to the Eurozone exposure, and with the financial conflict between America and China escalating over Hong Kong, London faces risks from HSBC and Standard Chartered, two major British banks most of whose business is centred in Hong Kong and the Far East.

By including the market's rating of these banks (the price to book ratio), we end up with a better estimate of risk than by relying on balance sheet equity alone.

Furlough and other schemes to delay the impact were predicated on the hope that after the covid crisis things would quickly return to normal.

Therefore, the government's covid response is to extend zombie support by underwriting a range of bank loans for large, medium-sized and small business and relieve them of taxes and business rates.

Then there is the hidden agenda of making limitless government borrowing affordable and thereby unleashing the prospect of unlimited monetary inflation.

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