George Osborne: eurozone crisis killing UK recovery

[AtW]

Your austerity is very difficult to do politically. That's what HMG are trying to do, and so far they are only dipping their toes into the water and already getting loads of hassle.

Indeed - 2 years now they are tring to do it and given that it's more or less mid term it's clear they won't achieve what they stated by end of their term. They are now blaming Europe for that.

[KentPhilip]

But people are forgetting that austerity promotes economic growth, because when the government stops borrowing as much money from investors, those investors have more money to invest in everything else, leading to economic growth in due course.

[AtW]

But people are forgetting that austerity promotes economic growth, because when the government stops borrowing as much money from investors, those investors have more money to invest in everything else, leading to economic growth in due course.

Not the way this "austerity" is designed.

What happens is this:

1) Govt uses BoE to print money so that yields on Govt bonds stay low and it can continue borrowing under low interest rate
2) Investors with money not interested in such pathetic income so they put their money into commodities like oil, gas, gold etc.

As the result inflation goes up as value of most currencies against real things goes down - more or less everybody is fooked apart from people in Govt who avoid making proper cuts to save their future political careers.

[VectraMan]

But people are forgetting that austerity promotes economic growth, because when the government stops borrowing as much money from investors, those investors have more money to invest in everything else, leading to economic growth in due course.

That's a bit of a leap. But a country with its finances under control creates confidence, which creates growth. What's affecting the ordinary Greeks more: austerity, or that the world+dog assumes that the whole country is going to be bankrupt by the end of the week?

[Doggy Styles]

Indeed - 2 years now they are tring to do it and given that it's more or less mid term it's clear they won't achieve what they stated by end of their term. They are now blaming Europe for that.

Pay attention AtW. The UK's biggest market is Europe, and much of it is in recession. Are you telling us that that has no bearing on the UK's economic plans?

[AtW]

Pay attention AtW. The UK's biggest market is Europe, and much of it is in recession. Are you telling us that that has no bearing on the UK's economic plans?

Why France and Germany doing better?

Look at UK exports:



Nice growth last year, do you think it THAT collapsed this year? I doubt it very much, the reason UK economy is in recession now is because of internal demand.

It's Osborne's job to create such conditions in the UK that it manages despite problems elsewhere - frankly he and Dave should not have been such arses to Europe if dependency is so high, instead of knocking euro they should be grateful they have devalued sterling that helps exports, I guess now they'll blame strength of pound for drop

There is nothing material that Osborne did since taking office that really helped businesses - especially small ones that create jobs, if you think that he did something like that then please post here with reference.

[Doggy Styles]

Feckin hell AtW, you take the biscuit.

[AtW]

Feckin hell AtW, you take the biscuit.

[OwlHoot]

Feckin hell AtW, you take the biscuit.

He's obsessed

Mind you, that export diagram was a good find and quite interesting.

[AtW]

Mind you, that export diagram was a good find and quite interesting.

Suprising part for me was too see that exports to Netherlands was on par with France, and if you add Belgium to this then it would be more exports than to Germany.