Pound Volatile on Hung Parliament

In BBC's article, Pound Volatile on Hung Parliament, the current value of the pound is being speculated. Due to the messy and confusing situation in the new British parliament, with all three major parties lacking a majority, the sterling is sinking to a year low against the dollar. What's even more surprising is that the pound is losing ground against the euro, which has spiraled downward from the eurozone crisis. Speculators are worried that the weak government will not have the ability to work past the UK's high debt. They are also worried that the parties will spend too much time worried about the government formation rather than dealing with the economic crisis.

This article displays the concepts of sovereignty authority and power as they apply to the UK. Due to the power split, who will gain control and be the prime minister is a major question, especially during such a critical period.

Grade this post. Picture thanks to Getty images.

5/7/10

Claire Austin