More about the credit crunch

More and more people seem to be coming round to my view that the devaluation of the pound is a bad thing.

For instance, Jeremy Warner has a brilliant article in The Independent today.

He makes an additional point that I had missed: “Sterling’s plunge will undoubtedly have contributed to this absence of credit by accelerating the withdrawal of foreign funds from the UK banking system. Credit in the UK has come to rely heavily in recent years on constant infusions of foreign capital. These have now largely gone.”

Do read the whole thing.