August 17 2007: Sterling is down 10% against the Japanese yen since the worldwide economic problems began in July 2007. ( Sterling shunned amid crisis)
Why?
1. The UK has a big deficit.
The UK current accound deficit is 3.4% of GDP.
The budget deficit is 'stretched to its limits' at around 3% of GDP. (Sterling shunned amid crisis)
2. The UK has a property bubble.
3. UK households have large debts.
Household debt has reached a record 160% of disposable income, higher than in America.
~~