Larry Summers blasts UK tax cuts as ‘utterly irresponsible’ and warns of possible contagion
“In a series of tweets Tuesday morning, Harvard professor Summers said that although he was ‘very pessimistic’ about the potential fallout from the “utterly irresponsible” policy announcements, he did not expect markets to capitulate so quickly. ‘A strong tendency for long rates to go up as the currency goes down is a hallmark of situations where credibility has been lost,’ Summers said.”
USAGOLD note: Summers worries that London’s status as a global financial center will be threatened. Since the pound is used as a currency reserve, he says, its debasement will have global consequences.