Economy

Analysis: Trump's cryptogive is a dangerous road to walk

More cryptocurrency in politics is the last thing needed and is about vote fishing for Donald Trump, according to analysis.

When Trump was president, he rightfully worried about cryptocurrency because of its financial risks, writes Bloomberg's Lionel Laurent. Now he sees a chance to win over the part of the voter base that is interested in cryptocurrencies.

"If another bitcoin crash takes place, we may look back at Trump's election turnaround when more speculative fuel was added to the fire," he writes.

The FT's Lex column focuses on Trump's proposal for a strategic bitcoin reserve. The volatility, lack of regulation and liquidity are worrying.

“It remains to be seen whether Trump's wooing of the crypto crowd will translate into votes. It's a pretty safe bet that it won't translate into a workable policy," writes Lex.

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The minister: Has found "black holes" of 300 billion

Britain's newly appointed finance minister Rachel Reeves says in a speech to parliament on Monday that the previous government left behind a "black hole" in the budget. 22 billion pounds, equivalent to 300 billion kroner, is missing according to Reeves. BBC News reports.

She accuses the Tories of using money they didn't have access to and then "hiding" it from the British people.

- They spent like there was no tomorrow because they knew someone else would pick up the tab, says Reeves.

The Labor government now intends to reduce the deficit by £5.5bn this year and by a further £8bn next year.

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Analysis: Is like 2010 – it will hurt

The British government is forced to save in the autumn budget because the previous government left behind a "black hole", in the form of unfunded expenditure of 22 billion pounds. This was announced by the newly appointed finance minister, Rachel Reeves, on Monday.

The Guardian's economics editor Larry Elliott thinks the message brings to mind 2010 and George Osborne's first appearance as the new Chancellor of the Exchequer.

"In both cases, it boiled down to two basic statements: This is going to hurt, and it's the other person's fault," he writes.

Reeves can continue to deflect blame but a government is ultimately judged by the decisions it actually makes, Elliott continues.

Sky News political reporter Rob Powell notes at the same time that tax increases now appear to be almost inevitable.

- It is becoming increasingly clear that this expenditure audit is a political tool used to cover up what is happening in the budget, he says.