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Britain’s Financial Disaster Is a Warning to the World

Britain’s Financial Disaster Is a Warning to the World

A toxic mix of politics, inflation and higher interest rates is threatening the financial system in the U.K., sending a shock wave through global markets and providing a warning to governments everywhere of the dangers of the new economic era we are entering.

A surprise tax cut by the new British government just over a week ago sparked investor concern about the country’s fiscal credibility and crashed both the pound and the market for U.K. government bonds, known as gilts.

Written by Barry Black