Britain: BRITAIN Clouds of Recession

In its struggle to defend the battered pound, Britain's Labor government has not only borrowed heavily abroad but has severely cut back its whole welfare program in favor of the toughest clampdown on Britain's overheated economy since the early '50s. Purpose: to create a measure of deflation and thereby dampen Britain's appetite for buying more abroad than it sells, a habit that has upset the country's trade balance and contributed heavily to the pound's troubles. Last week, with stunning swiftness, the government began getting its way. The first clouds of recession rolled across...