web analytics

ZERO SUM GAME….

By ATWadmin On January 3rd, 2009 at 10:36 am

It’s reported that millions of British savers (Remember them?) are braced for zero per cent accounts within days as the Bank of England is poised to cut interest rates to the lowest level in its 315-year history.

Experts have warned the return on savings could plumb new depths with the Bank expected to take unprecedented steps to regain control over the economy. They widely believe the Bank will reduce borrowing costs to below their 2 per cent level – and possibly all the way down to 1 per cent – in its first meeting of the year next week. More than 7 million people have saving accounts which already pay interest of 1 per cent or less. If a cut is passed on in full by banks, these accounts will dive towards negative territory for the first time on record. Many elderly people who rely on the income from savings have found themselves struggling in recent months as returns fall. Just 18 months ago average interest rates on savings accounts were as high as 6 per cent. But consecutive cuts by the Bank’s Monetary Policy Committee have led to banks slashing their savings rates, with the current average rate being just 2 per cent.

With interest rates as low as 1%, and inflation at over 4%, savers are not just earning no interest, they are seeing their life savings wiped out. In addition, a new cut in interest rates will further weaken the ailing Pound – putting it on life support.

But hey – relax – Gordon Brown is best placed to solve all our woes given his expertise at engineering them in the first place.

THE SLOW DEATH OF THE BRITISH POUND….

By ATWadmin On December 29th, 2008 at 9:20 pm

Gordon Brown boasts that the UK is singularly well placed to weather the global financial storm, thanks to his strong decisive leadership. Oh really?

“The pound’s relentless slide towards parity with the euro picked up pace today after it plunged to another record low against the single European currency. Sterling has lost 13% of its value against the euro this month alone as it sinks to yet more historic lows since the currency was introduced in 1999.

The pound has also weakened significantly against the US dollar, now worth 1.46 dollars – a far cry from its strength against the greenback this time last year, when it was fetching more than two dollars.”

So far, so bad….and then,

Experts are predicting that the pound will soon hit parity with the euro and may be worth even less, given the forecast for further steep cuts in UK interest rates.  The pound’s troubles have been compounded by recent economic figures suggesting the Bank will have to pull out all the stops to prevent a deep and prolonged recession. Official figures out before Christmas revealed that the UK is heading towards recession faster than first thought. Revised output figures showed a negative GDP reading of 0.6% in the third quarter – worse than the initial minus 0.5% first estimated by the Office for National Statistics (ONS).

The gloomier data saw many economists increase rate cut forecasts, with at least another 0.75% reduction thought to be on the cards, which would take the UK bank base rate down to an unprecedented 1.25%. Rates are expected to hit close to zero over the coming year. The weakness of the pound is also linked closely to the UK’s public finances and debt levels, which have been deteriorating rapidly as the country sinks into recession. Data recently showed UK public sector borrowing nearly doubled to £56.1 billion for the first eight months of the financial year.

Brown can rely on our gutless media to spin his Walter Mitty tales of financial genius but the market, the cold-eyed market, cannot be fooled so readily which is why money is pouring OUT of the UK into more long term rewarding areas. The British Pound is being killed by Brown’s economic ineptness  and yet I think he could not be happier about it.

Cometh 2009 –  cometh the Euro?

GORDON BROWN AND THE THIRD REICH!

By ATWadmin On December 22nd, 2008 at 8:36 am

I see that the Archbishop of Canterbury, Dr Rowan Williams, has risked causing a new controversy by inviting a comparison between Gordon Brown’s response to the economic downturn and the Third Reich.

In an article for The Daily Telegraph, he claims Germany in the 1930s pursued a “principle” that worked consistently but only on the basis that “quite a lot of people that you might have thought mattered as human beings actually didn’t”. Dr Williams, the most senior cleric in the Church of England, then appears to draw a parallel between the Nazis and the UK Government’s policies for tackling the downturn, which he says fails to take account of the “particular human costs” to the most vulnerable in society. “What about the unique concerns and crises of the pensioner whose savings have disappeared, the Woolworth’s employee, the hopeful young executive, let alone the helpless producer of goods in some Third-world environment where prices are determined thousands of miles away?” he ask

He has a point. Savers are being entirely neglected as government chooses to look after the financially imprudent. Ambitious young people are finding that there are no jobs for them, leading to pent up frustration. HOWEVER let is remember that Dr Williams is a Mmarxist at heart so whilst he rightly flags up some of the dangers that the Labour government present to us, his alternatives would be worse.

LESS THAN ZERO….

By ATWadmin On December 17th, 2008 at 11:26 am

The decision over in the States by the Fed to cut interest rates to almost zero looks like it may be copied by the Bank of England in the months ahead. This decision has been hailed as bold and courageous and there has been a (short-term) boost in the money markets however there is one group of people for whom it is disastrous. I am talking, of course, about SAVERS!

Remember them? Yes, they are the folks who put money aside, who do not borrow what they cannot afford, and who rely on the interest from their savings to provide income for them as they grow older so they can live independently. In a word or two, they’re screwed.

Where do the elderly now turn for the necessary interest? To the State I suppose – the all seeing State – the all powerful State. Beg Gordon Brown for extra cash and he might give you something I suppose, so long as you keep his regime in power, of course! It’s horrendous to see the fiscally responsible being crucified in order to save the reckless. What it all comes down to is that being prudent now is worth less than zero.

THE END OF BRITISH BANKING?

By ATWadmin On December 17th, 2008 at 11:19 am

Is it possible that the UK government will move to take control of all British banks, so ending centuries of a free and independent banking system?

“Peter Spencer of the University of York warned that full-scale nationalisation is now “almost inevitable”. He said: “There are a number of other measures you can try first – further interest rate cuts, and various tweaks to Alistair Darling’s [bail-out] plan. However, the real problem here is we still don’t know the scale of what we’re dealing with. We need regulators to go into the banks and have a really good look round [at the scale of the so-called toxic debt on their balance sheets]. “I suspect they will discover that another £50 billion or so of capital is needed. If that happens then the banks will effectively be nationalised. The whole thing is very scary, but I think it’s almost inevitable.”

I believe that the current UK government would love to grab control of our banking system and indeed I would add that I think the current lunatic policy it runs (Borrow @ 12%, Lend @ 4%) is going to cripple the banks further.  Not so many years ago, Labour’s policy was to socialise the banks. That was allegedly dropped from its’ manifesto position but now it seems full steam ahead. The financial clouds may gather but for the opportunistic socialist knows they are silver-lined. 

He’s Not the Messiah, He’s a Very Incompetent Boy!

By ATWadmin On December 17th, 2008 at 8:43 am

When he’s not in the UK ‘saving the world’, our own caped crusader, Gordon Brown, is touring around the Middle East doing his very best Churchill impersonation.  The rest of us (he hopes) are sleeping soundly in our beds, comfortable in the knowledge that our economy is being guided by the most brilliant Scottish mind since the Krankies.  Except that on the horizon dark clouds are emerging.  Clouds which give the lie to Gordon’s economic prognostications.

There are three other major economies in Europe with which the United Kingdom competes: France, Germany and Italy.  They are fellow members of the G7 group of industrial countries and are, therefore, the most important collective measure of how well domestic financial and economic stewardship is progressing by comparison.   Ever year the Economist, that lap-dog journal of New Labour, publishes a comprehensive guide to how various countries will fare during the forthcoming year.  For me the most interesting figures are a country’s GDP per head and the anticipated growth/contraction of its economy.  In its forecast for 2008 the Economist gave us the following figures:

GDP per Head ($)

France 43,640

Germany 41,400

Italy 38,190

United Kingdom 46,740

Now let’s have a look at the same publications figures for 2009: the year when the full fruits of Labour’s economic management will ripen:

GDP per Head ($)

France 43,910

Germany 41,550

Italy 40,150

United Kingdom 39,470

So, whilst our esteemed government is telling us the UK is the best placed to weather the global downturn, back on Planet Reality our output per head is expected to fall by 15% (the others all experience an increase) and our economy is likely to shrink by a full 1% – far more than our three most important competitors.  We will have a lower GDP per head than France and Germany for the first time since the early 1990s and a lower GDP per head than Italy for the first time in over twenty years.

Can our socialist pseudo-junta appreciate the scale of ignominy here?  We will have a lower GDP than a country where the Mafia is rife in over 1/3 of its territory and where a government’s success is measured by the scale of its corruption!!!  It would be nice if Gordon could remove his head from his own arse and see the truth for once.  If he wants to fulfil the role of a Biblical character, I’d suggest Moses would be the most appropriate.  Not because Moses led his people to the Promised Land, but because Moses started out as a basket case and Gordon Brown has ended up as one!!!

 

 

A WORD TO THE NOT SO WISE…

By ATWadmin On December 16th, 2008 at 8:50 am

I note that the First and Deputy First Ministers of the NI toytown assembly are “to lead” an Executive meeting with the bosses of the four main banks in NI to discuss the economic downturn.

The unholy trinity of Peter Robinson, Martin McGuinness and Finance Minister Nigel Dodds (God but you would need a strong stomach to countenance those three goons first thing in the morning) are expected to urge the banks to pass on interest rates cuts to customers. Mr Robinson said the banks have a role to play in easing the credit crunch on households. He said both he and Mr McGuinness want to “get our economy moving.”

A few points;

1. Given that bad lending has created many of the banking problems, does the unholy trinity believe banks should now change their ways and lend less? Or should they keep making the same mistakes? Which is it?

2. The UK Government (as opposed to the toytown NI Assembly) has lent to the banks at a rate of 12%. The unholy trinity now want the banks to lend at a rate of 4% of thereabouts. Can they explain how this wil help “get our economy moving”? Except downwards, I suppose?

3. Seeing as how Mr McGuinness’s  favourite terrorist organisation, the IRA, spent decades obliterating local business, killing local business-men and extorting cash from local employers, why the hell would anyone pay any notice to his witterings?

All this spinning from the Assembly may get a free pass from the local media but I believe it is good that at least a few of us hold the political vermin to account, don’t you?

JOIN THE DOTS…

By ATWadmin On December 14th, 2008 at 1:51 pm

Consider;

“The best way to destroy the capitalist system is to bebauch the currency”  John Maynard Keynes.

Then – this headline “Pound buying less than the Euro”. Sterling approaches an all time-low.

I wonder, perchance, if they are related? Isn’t Labour’s anthem “The Red Flag”?

Caveat emptor.

THREE CHEERS FOR THE GERMANS!

By ATWadmin On December 11th, 2008 at 10:22 am

Not often I find myself in agreement with the Germans BUT I applaud Germany’s finance minister who has launched an outspoken attack on Gordon Brown’s economic recovery plan.

Peer Steinbrueck said the Government was ‘tossing around billions’ and was getting the country into so much debt it would take a generation to work off.

His remarks added to the prime minister’s humiliation after he caused gales of laughter in the Commons when, in a slip of the tongue, he said: ‘We saved the world’.

In an unusual breach of diplomatic etiquette, Mr Steinbrueck said that tipping the UK into record levels of debt was ‘breathtaking’ and ‘crass’ and was repeating the same mistake that created the crisis.

Britain has poured £37billion into recapitalising its banks, and Chancellor Alistair Darling made £20billion of tax cuts in his Pre-Budget Report, leading to a national debt next year of £118billion.

Steinbrueck is quite right. The “draconian Keynsianism” policies that Brown is pursuing will reduce our economy to cinders. Then again, perhaps that is the aim?

THE DEATH OF STERLING?

By ATWadmin On December 10th, 2008 at 7:44 pm

Such has been the unmitigated success of UK PM Gordon Brown’s cunning financial management of our nations’ economy ….that the value of the £pound compared to other major currencies has fallen to a 28-year low amid growing fears over the health of the British economy.

Brown is on record stating that no other major economy is better placed than the UK to weather the current international financial straits. But for some odd reason, investors feel different!

“UK Holidaymakers were warned that the pound may soon reach so-called parity with the euro with £1 buying just one euro. At tourist rates, £100 will now buy just 110 euros. Bank of England figures, which measure sterling against a basket of international currencies, recorded the pound at its weakest level since records began in 1980. Currency experts said that the British currency was last this low in the mid-1970s when the country faced bankruptcy and received emergency funding from the International Monetary Fund. The pound has fallen amid growing fears over rapidly increasing levels of Government borrowing. Alistair Darling, the Chancellor, recently conceded that public borrowing will reach more than £1 trillion over the next few years.”

So why is Brown overseeing this decline in our national currency whilst simultaneously boasting what a great job he has been doing? It’s my view that Labour, through its actions is deliberately taking the value of the Pound to the point where it could then be exchanged for the Euro. We lose our currency, Brown wins the plaudits of the Euro-mob.