The Tories are getting desperate. As the Lib Dems surge in the polls and look like spoiling the Tory (premature) election celebration party, the knives are out for Nick Clegg. All the Tory press are in full assault mode today.

One of the most ridiculous attacks is to say that the financial markets and the value of the pound will collapse if the people of Britain dare to vote for anything other than a resounding Tory majority. Actually for a month we have been looking at a hung parliament as a likely outcome and the markets know it. Markets don’t wait to see what happens. They seek to predict what is going to happen. So they have done just that.

I don’t rule out some market volatility before and after election day BUT the current state of markets reflects what traders predict will happen and that is a hung parliament.

Surprise surprise – The result is not financial Armageddon.

A month ago the FTSE 100 share index of leading companies was valued at 5650 points. This morning as I write this it is on 5732 points.

A month ago the £ was worth $1.51. This morning it is worth $1.54. The increase in the value of the pound against the Euro is even greater.

So much for the nonsense of the Tory scare stories.

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Comments
  1. Anne says:

    One of the many things I learned in my long marriage to my accountant/economist husband was to listen to and read about the state of the FTSE 100 share index and the value of the pound! Agree with all you have said about this Tory scare story of market chaos.

  2. Clive says:

    Whilst agreeing that talk of market chaos is a scare story, the lib dems also go in for scare stories.
    Mike Simpsons election leaflet talks of the job losses and VAT increases likely to follow a conservative win. Well, most commentators agree there will be job loses whoever wins the election , Labour, Lib Dem or Conservative
    The VAT increase is a made up policy by the lib dems. Better to critise real policies rather than fictitous ones.
    Scrapping the planned Trident replacement will have a minimal effect on public spending during the course of the next parliament as only studies are being carried out at present.
    Made up scare stories and a cut in Trident which does not address the current deficit problem do not inspire confidence.

    • Mike Simpson says:

      The problem with your comment Clive is that the Tories have a track record of saying they will not increase Vat and then doing precisely that in 1991 when they were in government. The huge black hole in the nation’s finances will have to be addressed. The Tories are planning inheritance tax cuts for the very richest in our country (same old Tories favouring the wealthy) and want to reverse Labour’s plans for NI – so it is highly likely they will ratchet up vat and extend its scope to items which do not currently incur it. That’s what we have said and what we will continue to say, because of the Tories past behaviour and their refusal to rule out a rise in Vat.

  3. Clive says:

    One example of a VAT increase does not constitute a track record. The normal definition of track record is ‘the past record of the accomplishments and failures of a person, business etc’.
    I repeat if the lib dems want to be regarded as the refreshing party of change they need to to concentrate on criticising actions and plans and not made up scare stories.

    As far as inheritance tax is concerned it mainly benefits single home owners who live in areas with high house prices such as Surrey. I am single as are a number of my friends and none of us are rich but we will all benefit from the Tory tax policy

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