Essentially foreigners are willing to lend us money – or buy our assets – because they believe the UK is a pretty safe, stable and open economy.
As a result, we are able to consume more than we produce.
In fact some have argued that we have been too attractive for foreign money – too stable, open and trustworthy. The result, they say, is that this foreign cash has pushed up the exchange rate, making UK businesses less competitive.
We will see where this all takes us.
The fall in the pound has made the UK less attractive to foreign investment. This has made not just our holidays, but our weekly shop more expensive.
If there are any benefits to this, we have not seen them yet.
