Euro slowly unravelling !!

[Mich the Tester]

Quite! Do you know that Decembers inflation figures show the first fall since records began... I know it isn't the textbook definition of deflation, but in my book it's a pretty strong indicator it's there, just being hidden by the governments imaginative accounting methods.

It’s deflation. Britain’s economy is now officially a wet fart.

[PM-Junkie]

Fascinating. So a fall in inflation = deflation.

I am sure economic textbooks all over the world are being rewritten as we speak. Perhaps all you economic geniuses can explain how an economy that relies heavily on imports, with a currency that is apparently collapsing around our ears, will manage to experience deflation?

You can't have it both ways. Either you whinge about a collapsing currency, or you whinge about deflation. A collapsing currency in an imports-reliant economy is an INFLATIONARY pressure.

[Mich the Tester]

I've recieved 7 different requests for testers this week and it's only tuesday. Euroland collapsing? Not here it isn't.

[sasguru]

What 3 major things would you do differently?

1. Stop pissing about and nationalise the weakest banks. Its going to happen anyway. These can be used for whatever purpose then, lending to business, taking on bad debt etc.

2. Reverse the silly VAT reduction. Its not going to help and is cutting government revenue when the govt is already bust.

3. According to Kenesian theory in a bad recession/depression the govt must boost demand. So the over large public sector should not be cut (just yet) but made to do useful work. The UK's infrastructure is poor. Why not use the opportunity to regenerate it? That would involve sacking useless pen pushers and hiring real workers, prob those from the construction industry.

[Mich the Tester]

3. According to Kenesian theory in a bad recession/depression the govt must boost demand. So the over large public sector should not be cut (just yet) but made to do useful work. The UK's infrastructure is poor. Why not use the opportunity to regenerate it? That would involve sacking useless pen pushers and hiring real workers, prob those from the construction industry.

Indeed. High speed rail links, road building, wide ranging electricity projects from nuclear to wind and a replacement for Concorde please. None of this messing about with crappy databases for the NHS, ID cards and so on. Build something useful and profitable, and if you can’t do that, build something interesting and inspiring.

[oracleslave]

1. Stop pissing about and nationalise the weakest banks. Its going to happen anyway. These can be used for whatever purpose then, lending to business, taking on bad debt etc.

2. Reverse the silly VAT reduction. Its not going to help and is cutting government revenue when the govt is already bust.

3. According to Kenesian theory in a bad recession/depression the govt must boost demand. So the over large public sector should not be cut (just yet) but made to do useful work. The UK's infrastructure is poor. Why not use the opportunity to regenerate it? That would involve sacking useless pen pushers and hiring real workers, prob those from the construction industry.

Those all make sense. What about boosting the money supply? Would that help?

[sasguru]

Those all make sense. What about boosting the money supply? Would that help?

Do you mean so-called quantitative easing?
have to admit I don't understand it, but then I suspect no one does and all these high-falutin economists are farting in the gale.

Bottom line is that in the long term the economy needs to be re-jigged to be more productive. Don't know how this is to be achieved either when its so uncool to be a scientist or an engineer.

[Gordon Brown]

Indeed. High speed rail links, road building, wide ranging electricity projects from nuclear to wind and a replacement for Concorde please. None of this messing about with crappy databases for the NHS, ID cards and so on. Build something useful and profitable, and if you can’t do that, build something interesting and inspiring.

Our government are planning a massive investment in new quango's a complete overhaul and increase in civil servants pension contributions, a large order of red biros, a very large investment in MP's expenses and several databases to combat terrorists.

[TimberWolf]

Indeed. High speed rail links, road building, wide ranging electricity projects from nuclear to wind and a replacement for Concorde please. None of this messing about with crappy databases for the NHS, ID cards and so on. Build something useful and profitable, and if you can’t do that, build something interesting and inspiring.

And the Severn barrage, which would soak up loads of manpower in all sorts of professions. The finished project would be useful, a wonder of the world and great for ducks too. Recessions should be times of opportunity for projects such as this, so well done to Gordon for leading us into this position!

(Trouble is we would probably get the French to do it)

[Mich the Tester]

Bottom line is that in the long term the economy needs to be re-jigged to be more productive. Don't know how this is to be achieved either when its so uncool to be a scientist or an engineer.

I come across this too. So many youngsters that I meet are studying ‘International Marketing Management’ or ‘European HR management’ and thinking they’re going to become besuited bigshots and earn massive bonuses. I try to persuade them to become techies by telling them I earn twice as much as most middle managers (which is as far as most of them will get) and can go home at half past five, but they don’t want to hear it.