UK Economy

[CaerMyrddin]

Just remembered me:

http://www.youtube.com/watch?v=FBAXWz-8arw

[superfrank]

some good news!

Man Utd sponsor Aon moves headquarters to London
http://www.bbc.co.uk/news/business-16548595

[superfrank]

Mervyn King says UK recovery will be long and arduous
http://www.bbc.co.uk/news/business-16709862

or non-existent in a globalised world economy where we will struggle to be competitive because of the high cost of doing business here or making anything.

[Iron]

I believe he also said recently something like 'There always is a recovery to an economic crisis'. I don't see why there has to be...

BTW, as an indication of how tough things are out there, I recently sent out over 1,000 emails to local companies, asking if they had any vacancies. I got just one interview out of it (although fortunately, I'm more or less sure I've landed the job, if I want it!).

Jeff

Mervyn King says UK recovery will be long and arduous

[Iron]

Re: My previous message - Here are Merv's exact words:

“All crises come to an end, and businesses will find ways to trade with each other and meet the needs of consumers.

Helped by the right policy actions, the UK and world economies can and will recover. And when they do so, they will be on a more sustainable footing than at any point in the past 15 years."

Mr King, you are a terrible liar!

BTW, it is just me, or is Labour's position re. cuts a bit confusing? One week, they're advocating a public sector pay freeze, and the next they're repeating the 'too fast, too deep' mantra! Make your minds up guys!

Jeff

[superfrank]

Labour have done an about turn because they've belatedly realised that they are on the wrong side of public opinion on the welfare issue.

They obviously don't mean what they are now saying though... total scumbags, i've never understood why New Labour want to be in power - they don't stand for anything apart from hating the Tories.

[Iron]

50p tax rate is damaging economy and delaying recovery from recession, warn 500 business leaders - http://www.telegraph.co.uk/finance/pers ... aders.html

[superfrank]

50p tax rate is damaging economy and delaying recovery from recession, warn 500 business leaders - http://www.telegraph.co.uk/finance/pers ... aders.html

what total bolux. not only are these people massively benefiting personally from ultra-loose monetary policy but they have also awarded themselves huge salary increases in recent years - now they want tax cuts while most people are struggling to make ends meet.
if the government cuts the 50p tax rate they won't get my vote (i only vote for them normally to help keep Labour out anyway) - the Tories are far too wet these days, but haven't softened their position on helping the rich first (remember their £1m inheritance tax exemption policy?).

[superfrank]

Funding for Lending bank scheme launched
http://www.bbc.co.uk/news/business-19068444

more desperate acts to to prop up the UK housing market.

Bank governor Sir Mervyn King has pressed the panic button to get lending going again...

Banks and building societies will given funding at 0.25% - far below available rates in the market - for an extended period in return for being watched on how they lend it to non-financial parts of the economy.

this only confirms how f*cked things really are - they just cannot accept that asset prices will fall as the necessary deleveraging occurs. everything the BoE/UK govts have done economically since the financial crisis started has been designed to prevent a house price crash (which should happen because they are still massively overpriced). it will still happen (even if not in nominal terms) because the market will eventually win out.

[Iron]

Bank cuts growth forecast close to zero - http://www.bbc.co.uk/news/business-19174649

'Chancellor George Osborne said that economic growth was "disappointing", but that the government had an opportunity to "give its 110% attention and effort and energy" to getting it moving.'

How reassuring...

Jeff

[superfrank]

UK government borrows £600m in July as tax receipts dip
http://www.bbc.co.uk/news/business-19329758

Four months into the financial year the government has borrowed £44.9bn, £9.3bn higher than the same period in 2011. That excludes banking interventions and the one-off boost in April from a transfer of Royal Mail pension assets to the public sector.

The OBR had predicted that borrowing on the same measure would be £120m for the whole of the financial year, down from the £125m borrowed last year.

borrowing is even higher than last year!
deficit reduction my arse.
the country is still living massively beyond its means.

[superfrank]

How previous recessions compare:

Untitled-1.jpg

and this is despite £375bn of new funny money, 0.5% interest rates and record government deficit spending.

this is not a recession, it's a financial crisis of which the recession is merely a symptom.

financial crises typically take much longer to recover from than ordinary recessions (and this one is unprecedented in size and scope).

[Iron]

'A recent opinion poll for the Centre for Policy Studies revealed that 47 per cent of British adults believe the Coalition is planning to reduce the national debt by £600 billion over the course of this parliament. In fact, the plan is for it to increase by £600 billion. With only 10 per cent of those questioned getting this right, the implications for democracy are alarming.'

http://www.telegraph.co.uk/finance/econ ... kards.html

It would appear then that the BBC and the Labour Party are succeeding at pulling the wool over people's eyes...

Jeff

[Iron]

PS The aforementioned article also says the following, which I think hits the nail on the head:

'Defenders of unreformed state spending – an escalator with no down switch – like to talk of “fairness” between income groups, sexes and ethnic communities. What too few address, however, is fairness between generations, the unwritten contract between the living and those not yet born.'

Jeff

[superfrank]

this was Jeff Randall's programme on the subject from Friday...
Born Bankrupt http://www.youtube.com/watch?v=7Arvszjt09M

a depressing state of affairs where those in power care only for their own generation (and class).

edit: by those in power i mean private bankers and central planners (central banks and puppet politicians), in that order.