Recession’s back, according to the OECD. It’s difficult to say how accurate the prediction is since the Bank of England makes it so difficult to find up to date money supply figures.
Somewhere recession is not back is Iceland. You remember it, small rocky place, no banks left since they all went bust. Iceland was battered more than any other nation in the European Economic Area because of its failed banks. The government wanted to stiff the people by loading bank debts onto them, the people told the government to get stuffed, all the experts predicted doom and free marketeers gave three cheers.
Last week Iceland’s credit rating was raised from Negative to Stable by S&P. Things seem to be moving the right way out of destruction then. In contrast to its report of doom for the UK and Europe, the OECD has a positive outlook for Iceland. GDP is at 2.9% and forecast to be 2.4% for the next couple of years. Unemployment is at 7.0% and falling. The Republic of Ireland, which (along with the UK) stands in contrast to Iceland in how failed banks were treated, has a pitiable GDP of 1.2% (almost as bad as the UK) and unemployment of 14.1%.
Well done to the people of Iceland. Their fight was right, they are vindicated and they are a lesson to everyone who is told that they must saddle the debts of banks which ought to have been allowed to go bust.