{"id":496414,"date":"2022-09-27T18:31:00","date_gmt":"2022-09-27T15:31:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/key-words-u-k-could-trigger-a-global-crisis-as-pound-collapses-while-bond-yields-soar-larry-summers-says\/"},"modified":"2022-09-27T18:31:00","modified_gmt":"2022-09-27T15:31:00","slug":"key-words-u-k-could-trigger-a-global-crisis-as-pound-collapses-while-bond-yields-soar-larry-summers-says","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/key-words-u-k-could-trigger-a-global-crisis-as-pound-collapses-while-bond-yields-soar-larry-summers-says\/","title":{"rendered":"#Key Words: U.K. could trigger a global crisis as pound collapses while bond yields soar, Larry Summers says"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a26e1258a14e\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a26e1258a14e\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/key-words-u-k-could-trigger-a-global-crisis-as-pound-collapses-while-bond-yields-soar-larry-summers-says\/#%E2%80%9CKey_Words_UK_could_trigger_a_global_crisis_as_pound_collapses_while_bond_yields_soar_Larry_Summers_says%E2%80%9D\" >&#8220;Key Words: U.K. could trigger a global crisis as pound collapses while bond yields soar, Larry Summers says&#8221;<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/key-words-u-k-could-trigger-a-global-crisis-as-pound-collapses-while-bond-yields-soar-larry-summers-says\/#Joseph_Adinolfi\" >Joseph Adinolfi<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CKey_Words_UK_could_trigger_a_global_crisis_as_pound_collapses_while_bond_yields_soar_Larry_Summers_says%E2%80%9D\"><\/span>&#8220;Key Words: U.K. could trigger a global crisis as pound collapses while bond yields soar, Larry Summers says&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\">\n<\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\" data-nosnippet>\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap crawler\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0001222959\" role=\"document\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"\n                inline\" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetArticleReader\n              \n              inline\n  article__inset\n          article__inset--type-InsetArticleReader\n              article__inset--inline\n  \"><\/p>\n<div class=\"media-object-article-reader\">\n<div class=\"audioplayer\" data-sbid=\"WP-MKTW-0001222959\" role=\"region\" aria-label=\"Listen to Article\" tabindex=\"-1\" id=\"articlereader\" data-show-title=\"false\" data-theme=\"wsj-article-reader\" data-show-header=\"false\" data-show-subscribe=\"false\" data-ads-enabled=\"true\" data-save-publication=\"false\">\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"inline\n                \" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetPullQuote\n            inline\n    scope-web|mobileapps\n  article__inset\n          article__inset--type-InsetPullQuote\n            article__inset--inline\n  \"><\/p>\n<div class=\"wsj-article-pullquote article__inset__pullquote \">\n<p class=\"pullquote-content article__inset__pullquote__quote\">\n        <span class=\"l-qt article__inset__pullquote__mark--left\">\u201c<\/span>\u201cA currency crisis in a reserve currency could well have global consequences. I am surprised that we have heard nothing from the IMF.\u201d<span class=\"r-qt article__inset__pullquote__mark--right\">\u201d<\/span>\n      <\/p>\n<p>        <small><br \/>\n          <span class=\"inset-author article__inset__pullquote__author\">\u2014  Larry Summers, former U.S. Treasury secretary<\/span><br \/>\n        <\/small><\/p><\/div>\n<\/p><\/div>\n<p>       Former U.S. Treasury Secretary Larry Summers is worried that the U.K.\u2019s new Prime Minister Liz Truss may risk triggering a global crisis if the government doesn\u2019t take steps to stop the bleeding in local government bonds and the pound. <\/p>\n<p> Since the pound is considered a global reserve currency, a balance-of-payments crisis in the U.K. could reverberate beyond Britain\u2019s borders, Summers said in a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/watch-movies-tv-seriess\/\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Watch Movies &amp; TV Series\" target=\"_blank\" rel=\"noopener\">series<\/a> of tweets on Tuesday. <\/p>\n<div class=\"paywall\">\n       Given the growing risks of a crisis, Summers said he is \u201csurprised\u201d that the International Monetary Fund hasn\u2019t yet chimed in. <\/p>\n<div data-layout=\"inline\n                \" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetTweet\n            inline\n    scope-web|mobileapps\n  article__inset\n          article__inset--type-InsetTweet\n            article__inset--inline\n  \"><\/p>\n<div class=\"dynamic-inset-container article__inset__dynamic\">\n<style>\n            iframe.twitter-tweet {\n                width: 100% !important;\n            }\n        <\/style>\n<blockquote class=\"twitter-tweet\" lang=\"en\"><p>\n            <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/LHSummers\/status\/1574586705218256901?s=20&amp;t=bOkKfV8xTKxepbJqq7HuZw\"><\/a>\n            <\/p><\/blockquote>\n<p>        <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p><\/div>\n<\/p><\/div>\n<p>       Summers said last week that he wouldn\u2019t be surprised to see the pound tumble all the way to parity with the U.S. dollar and the euro<br \/>\n        EURUSD,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210561242\/realtime\/sampled\" class=\"positive\">+0.02%<\/bg-quote><span>.<\/span>\n       <\/p>\n<p>But on Tuesday he said the pace of the British currency\u2019s decline over the past couple of days has taken him by surprise. <\/p>\n<p>The pound tumbled along with British government bonds as international markets pushed back against the Truss government\u2019s proposed mini-budget, which included both tax cuts and billions of pounds in energy subsidies to help British families struggling to pay heating bills in the face of the worst inflation in recent memory. <\/p>\n<p><strong>See: <\/strong>U.K. gilt yields surge, with 10-year topping 4%, as investors bet on aggressive Bank of England action to tame tax cuts<\/p>\n<p>Summers slammed the budget as \u201cutterly irresponsible\u201d and said that \u201ca strong tendency for long rates to go up as the currency goes down is a hallmark of situations where credibility has been lost.\u201d<\/p>\n<div data-layout=\"inline\n                \" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetTweet\n            inline\n    scope-web|mobileapps\n  article__inset\n          article__inset--type-InsetTweet\n            article__inset--inline\n  \"><\/p>\n<div class=\"dynamic-inset-container article__inset__dynamic\">\n<style>\n            iframe.twitter-tweet {\n                width: 100% !important;\n            }\n        <\/style>\n<blockquote class=\"twitter-tweet\" lang=\"en\"><p>\n            <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/LHSummers\/status\/1574586690869641216?s=20&amp;t=omnLuPlypnYSthHtrvDaXQ\"><\/a>\n            <\/p><\/blockquote>\n<p>        <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p><\/div>\n<\/p><\/div>\n<p>       As the U.K. trade deficit climbs due to rising energy costs, this combination of a weakening pound paired with rising yields could lead to a vicious cycle, Summers said. <\/p>\n<p>Summers added that he would \u201cnot be amazed\u201d to see yields on short-term gilts <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/trip-and-travel\/\" data-internallinksmanager029f6b8e52c=\"10\" title=\"Trip &amp; Travel\" target=\"_blank\" rel=\"noopener\">trip<\/a>le over the next two years, eventually rising above 7%. <\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p><strong>See:<\/strong> Traders shrug after Bank of England says it \u2018won\u2019t hesitate\u2019 to raise rates to meet inflation target<\/p>\n<p>It\u2019s possible that London\u2019s status as a global financial center could be damaged in the process. <\/p>\n<p>The pound rebounded on Tuesday as the greenback pulled back after hitting its highest level in 20 years. But the U.K. currency is still fetching just $1.08, just above its lowest level since the 1980s.<\/p>\n<p>Meanwhile, U.K. bond yields continued to climb, with the 10-year gilt<br \/>\n        TMBMKGB-10Y,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.000%\" channel=\"\" class=\"\">4.514%<\/bg-quote><br \/>\n      yield hitting 4.373%, while the 2-year gilt yield<br \/>\n        TMBMKGB-02Y,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.000%\" channel=\"\" class=\"\">4.609%<\/bg-quote><br \/>\n       ticked lower to 4.441%. <\/p>\n<p>British stocks were on track to finish marginally higher on Tuesday after the FTSE 100<br \/>\n        UKX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210598409\/delayed\" class=\"negative\">-0.52%<\/bg-quote><span>,<\/span><br \/>\n       the U.K.\u2019s benchmark stock index, saw its lowest close since June on Friday. <\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>    <span>By<\/span><\/p>\n<div class=\"author mobile-scrim hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Joseph Adinolfi\",\"subhead\":\"The Wall Street Journal\",\"list\":[{\"type\":\"link\",\"icon\":\"bio\",\"url\":\"https:\/\/www.marketwatch.com\/topics\/journalists\/joseph-adinolfi\",\"text\":\"Biography\"},{\"type\":\"link\",\"icon\":\"twitter\",\"url\":\"https:\/\/twitter.com\/jsadinolfi\",\"text\":\"@jsadinolfi\"},{\"type\":\"link\",\"icon\":\"email\",\"url\":\"http:\/\/www.marketwatch.com\/news\/mailto:joseph.adinolfi@dowjones.com\",\"text\":\"joseph.adinolfi@dowjones.com\"}]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Joseph_Adinolfi\"><\/span>Joseph Adinolfi<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><ufc-follow-author-widget product=\"marketwatch\" author-id=\"100_MW\" author-name=\"Joseph Adinolfi\" signin-url=\"https:\/\/accounts.marketwatch.com\/login?target=https%3A%2F%2Fwww.marketwatch.com%2Fstory%2Fu-k-could-trigger-a-global-crisis-as-pound-collapses-while-bond-yields-soar-larry-summers-says-11664292688%3Frss%3D1%26siteid%3Drss\" panda-api=\"https:\/\/follow-api.marketwatch.com\"><\/ufc-follow-author-widget><\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B20C06575-04D4-B545-712A-92F106D04666%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;Key Words: U.K. could trigger a global crisis as pound collapses while bond yields soar, Larry Summers says&#8221; \u201c\u201cA currency crisis in a reserve currency could well have global consequences. I am surprised that we have heard nothing from the IMF.\u201d\u201d \u2014 Larry Summers, former U.S. Treasury secretary Former U.S. Treasury Secretary Larry Summers is&#8230;<\/p>\n","protected":false},"author":1,"featured_media":496415,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.mktw.net\/im-611984\/social","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-496414","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/496414","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=496414"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/496414\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/496415"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=496414"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=496414"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=496414"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}