Letter: Tory poll mystery

Godfrey Bloom
Monday 21 September 1998 18:02 EDT
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Sir: We have seen massive asset deflation in the Hong Kong equity and property markets, unprecedented unemployment and negative equity for householders. Does this ring any bells? Will politicians everywhere please haul in the basic economic truth that pegging your currency to someone else's is doomed to failure in the long run.

The Hong Kong authorities seemed set on learning the hard way. Gordon Brown, Kenneth Clarke and Michael Heseltine seem hell-bent on having to relearn it after only six years. The Hong Kong peg will have to go eventually as sure as economic and monetary union in Europe will fail when the continent enters the next recessionary cycle.

GODFREY BLOOM

York

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