Labour and the Pound

With the upcoming U.K. Elections next week in the 8 June there is a serious chance that Jeremy Corbyn will become the next U.K. Prime minister .

With that possibility let's look at the effect on the U.K. Economy . Well the first thing that will happen is that the pound sterling will fall about 15-20% as a starter and from there try to find a floor.

After the collapse of the pound then the rating agencies like Moody's and S&P will pile in and downgrade the credit worthiness of the U.K. From AAA probably to A+.

This will mean it will be more expensive for the U.K. to borrow money on the international markets. The borrowing will cost more . All of this is before Jeremy Corbyn spends his billions on give always like healthy, education and wage rises .

Check this out Meir velenski