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Recession: Job losses will accelerate, predicts CBI

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    #31
    DA,

    "You are talking about excessive borrowing",

    and what do you call this...

    UK consumer debt hits £1 trillion
    http://news.bbc.co.uk/1/hi/business/3935671.stm


    the point you are missing with Germany et al is that they don't have booms and busts, they have sustainable growth

    now, go home do some more reading and come back tomorrow and
    tell us what you've learn't on the subject

    Milan.

    Comment


      #32
      There shouldn't be much of an argument here.

      Germany and France are in the economic doldrums largely owing to unsustainable socialist policies and their Euro manacles

      With the exception of the monetry union the UK is in the economic doldrums owing to much of the same. Slightly less intrusive employment regulation but not a lot less.

      Unsustainable seems to be the word
      I do not agree Britain's economy is doing noticably better than Germany's or France'. The notion we are doing better is purely down to Gov't deceit. Unemployment is much higher than is disclosed. Business bankrupcies are at there highest for over a decade. Skilled employment is in a dreadful mess in the UK. The current public sector employment is also totally unsustainable.

      Unsustainable consumer borrowing in the UK is what's been keeping the economy afloat. But crucially this can hardly be attributed to borrowing for investment DA. Apart from what we normally associate with consumer spending (in the high street) an alarming volume of people had been using their credit cards as the only means to pay such things as :-

      tax bills
      energy bills
      mortgage repayments
      rents
      council tax bills
      other credit bills

      It is the unsustainable credit fuelled consumer spending that has been disguising Britain's true economic condition. And that is what's about to be realised.

      If I'm right, we're likely to experience the kind of misery that visited us in the early 90s. I don't care interest rates are low. Just means they can't be lowered significantly inorder to boost a failing or failed economy.
      Last edited by BobTheCrate; 27 October 2005, 15:20.

      Comment


        #33
        Originally posted by milanbenes
        DA,


        , they have sustainable growth


        Milan.
        They dont have any growth milan (sorry 1.5% which is treading water)
        Let us not forget EU open doors immigration benefits IT contractors more than anyone

        Comment


          #34
          Originally posted by BobTheCrate
          There shouldn't be much of an argument here.

          Germany and France are in the economic doldrums largely owing to unsustainable socialist policies and their Euro manacles

          With the exception of the monetry union the UK is in the economic doldrums owing to much of the same. Slightly less intrusive employment regulation but not a lot less.

          Unsustainable seems to be the word
          I do not agree Britain's economy is doing noticably better than Germany's or France'. The notion we are doing better is purely down to Gov't deceit. Unemployment is much higher than is disclosed. Business bankrupcies are at there highest for over a decade. Skilled employment is in a dreadful mess in the UK. The current public sector employment is also totally unsustainable.

          Unsustainable consumer borrowing in the UK is what's been keeping the economy afloat. But crucially this can hardly be attributed to borrowing for investment DA. Apart from what we normally associate with consumer spending (in the high street) an alarming volume of people had been using their credit cards as the only means to pay such things as :-

          tax bills
          energy bills
          mortgage repayments
          rents
          council tax bills
          other credit bills

          It is the unsustainable credit fuelled consumer spending that has been disguising Britain's true economic condition. And that is what's about to be realised.

          If I'm right, we're likely to experience the kind of misery that visited us in the early 90s. I don't care interest rates are low. Just means they can't be lowered significantly inorder to boost a failing or failed economy.
          The UK needs to batten down the hatches because borrowing is getting a bit out of control, though some economics commentators say it isnt. My point is that borrowing is a good thing for consumers and businesses alike. Increasing house prices gives people greater spending power which stimulates spending. Alongside this people become encouraged to borrow money (call it investment if you like but capital that is spent by businesses to expand comes usually from borrowing). The govt can help to kick start an economy by itself investing taxpayers money in new infrastructure projects.

          Now because some of you are so thick I fully understand the fact that boom can lead to bust, so by handing interest rate control over to bankers then interest rates will move according to how the economy is doing, rather than as a political tool to distort the economy to suit the agenda of politicians.
          Let us not forget EU open doors immigration benefits IT contractors more than anyone

          Comment


            #35
            I believe 1.5% is the latest city predictions for the UK's growth or treadwater as you rightly called it Dodgy.

            Some in the city have hinted at predicted negative growth in the UK.
            Originally posted by Dodgy Agent
            The UK needs to batten down the hatches because borrowing is getting a bit out of control
            I never thought I'd accuse you of making under statements Dodgy. Most unlike you.

            Originally posted by Dodgy Agent
            My point is that borrowing is a good thing for consumers and businesses alike
            I would guess the point is and was understood by all & sundry. As long as you acknowledge the associated caveats such as sustainability and affordability.

            Originally posted by Dodgy Agent
            Increasing house prices gives people greater spending power ...
            That seems one mother of a sweeping statement.

            Is that based on some logic like "the higher the house prices, the less people can afford to buy property and so have more disposable cash" ?

            Comment


              #36
              UK consumer debt hits £1 trillion
              How about this for a sweeping statement:

              "There's nothing wrong with £1 trillion debt. It's a bit like nuclear waste. You just need a big enough hole to hide it in or else we're all done for."

              Comment


                #37
                Originally posted by datestamp
                " £1 trillion debt "
                Didnt I read somewhere that its secured against 3 trillion in assets, doesnt sound so bad then does it.
                I am not qualified to give the above advice!

                The original point and click interface by
                Smith and Wesson.

                Step back, have a think and adjust my own own attitude from time to time

                Comment


                  #38
                  It sure is going to be a hard winter, better stay in this contract and keep my head down.

                  Comment


                    #39
                    Originally posted by BobTheCrate
                    I believe 1.5% is the latest city predictions for the UK's growth or treadwater as you rightly called it Dodgy.

                    Some in the city have hinted at predicted negative growth in the UK.
                    I never thought I'd accuse you of making under statements Dodgy. Most unlike you.

                    I would guess the point is and was understood by all & sundry. As long as you acknowledge the associated caveats such as sustainability and affordability.

                    That seems one mother of a sweeping statement.

                    Is that based on some logic like "the higher the house prices, the less people can afford to buy property and so have more disposable cash" ?
                    Someone at last who is able to engage in a discussion about economics.
                    I agree with all your points Bob. I am trying to say that a stimulation of house prices leads to a stimulation of consumer spending. Yes a secondary effect will be that people will find house buying more expensive leading to inflation. Economics is not about there being a pie of finite size, growth in an economy increases that pie's size so the inflationary effects of a growing economy take time establish themselves.

                    In Germany's case the government should make borrowing easier, reduce interest rates (which they cannot do being stuck with the Euro), reduce taxes, embark on some capital expenditure and remove all the job protection laws. This will have the effect of stimulating consumer spending which will stimulate the development of new businesses and expansion of existing ones.
                    Germany enjoys a trade surplus and people there have far more in savings tha we do in the UK. Businesses in Germany are sitting on cash because there is no confidence in the economy.

                    Anyway I suggest you read David Smith who writes for the Times and the economist http://www.economicsuk.com/blog/000243.html
                    Let us not forget EU open doors immigration benefits IT contractors more than anyone

                    Comment


                      #40
                      Originally posted by The Lone Gunman
                      Didnt I read somewhere that its secured against 3 trillion in assets, doesnt sound so bad then does it.
                      Yes, an article in The Economist to that effect a few weeks ago. As they said, £1 trillion is of no significance in its own right but it's a big scary sounding number that doom merchants like to throw around.

                      Comment

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