Et tu, Britain? United Kingdom to join China in the anti-dollar alliance

http://www.sovereignman.com/finance/et-tu-britain-united-kingdom-to-join-china-in-the-anti-dollar-alliance-16482/

Two-thirds of millionaires left Britain to avoid 50p tax rate

If it works in the United Kingdom, it should work in the good ol' USA?

http://www.telegraph.co.uk/news/politics/9707029/Two-thirds-of-millionaires-left-Britain-to-avoid-50p-tax-rate.html

Almost two-thirds of the country’s million-pound earners disappeared from Britain after the introduction of the 50p top rate of tax, figures have disclosed.

In the 2009-10 tax year, more than 16,000 people declared an annual income of more than £1 million to HM Revenue and Customs.

This number fell to just 6,000 after Gordon Brown introduced the new 50p top rate of income tax shortly before the last general election.

The figures have been seized upon by the Conservatives to claim that increasing the highest rate of tax actually led to a loss in revenues for the Government.

It is believed that rich Britons moved abroad or took steps to avoid paying the new levy by reducing their taxable incomes.

Europe to United Kingdom to United States

The contagion will spread according to the Global Europe Anticipation Bulletin.

http://www.business24-7.ae/banking-finance/banking/commercial-banks-buy-gold-to-meet-demands-2010-05-05-1.240551

UK downgrade

The UK is about to join the ranks of downgraded sovereign debt.

http://www.zerohedge.com/article/sp-we-no-longer-classify-uk-among-most-stable-and-low-risk-banking-systems

Bank of England warns of lower standard of living

One could argue the United Kingdom's finances are worse than the United States' debt-wise, but at least their central banker is honest about it.

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/7030904/Families-face-years-of-pain-says-Bank.html

PIMCO predicts UK bonds downgrade in 2010

Not that it took a genius, but PIMCO's Scott Mather predicts United Kingdom gilts (sovereign debt) will be downgraded in 2010. This will inevitably raise the cost of borrowing 100 basis points (1%) for England, further exacerbating their huge debt problems.

http://www.zerohedge.com/article/pimco-sees-uk-rating-downgrade-probability-80-gilts-higher-100-bps

With downgrades in Iceland, Ecuador, Hungary, Dubai, Greece, Spain and Ireland, it's likely the UK will be joining that unpleasant party. In fact, many countries in Europe will share that fate, including EU member countries, putting pressure on the Euro.

Morgan Stanley warns of UK default

Investment bank Morgan Stanley issued a report warning of a possible default on United Kingdom sovereign debt sometime in 2010, due to unsustainable deficits.

I would debate you can replace the initials UK with US, and the same could be true further down the road. Both governments are saddled with huge debts and unfunded liabilities. Losing their AAA credit rating would be cataclysmic to financial markets globally.

http://www.telegraph.co.uk/finance/economics/6693162/Morgan-Stanley-fears-UK-sovereign-debt-crisis-in-2010.html

United Kingdom's fiscal troubles

The UK shares the same fiscal troubles as the United States: high deficits, huge debts, insolvency, high taxation, a low manufacturing base, high regulation, high unemployment, a deep recession, replacement of private sector debt with public debt, and bankrupt entitlement (social) programs.

Their government response has been equally similar: quantitative easing--or creation of money supply. And the results will be identical--a huge default--via inflation or outright default.

Here's an insightful Australian perspective on a British problem.

http://www.moneymorning.com.au/20091109/britain-death-economy.html