2 2 mins 14 yrs

The IMF forecasts that the UK economy will slow sharply to a growth rate of just 1.6% in both 2008 and 2009. Growth in the world economy will slow substantially, led by a much deeper and longer slowdown in the US, including a "modest recession" (Psst – will someone please tell the BBC economic gurus that there IS a substantial difference between "a slowdown in growth" and " amodest recession" and financial apocalypse?)

Anyway, Alistair Darling, the UK’s Chancellor of the Exchequer, knows better and he is sticking by his forecast that the UK economy will grow by between 1.75% and 2.25% in 2008 and by 2.25% to 2.75% in 2009. If Darling is wrong, the black hole in UK finances will grow considerably deeper – just as the General Election approaches! Gordon Brown and his poodle Darling are living in denial of the fecklessness which has characterised their public spending policies over the last several years and it is getting closer to payback time – by which stage I believe they will be booted out of power and a real car-wreck of an economy inherited. The fruits of Labour.

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2 thoughts on “DARLING FIDDLES…

  1. I have never been quite sure how the Chancellor calculates future growth, – one assumes that it is based on GDP – i.e. in purely monetary terms.

    Given that inflation is quoted as being in the range 2.5 – 3.5 %, and that such inflation will affect, and inflate the value of GDP by a similar percentage, then I presume that it is easy to state that ‘growth’ will be in a similar range. The growth being no more than this years GDP – inflation adjusted.

    Real growth in the economy should surely be higher than the current rate of inflation.

    So when the Chancellor says growth will be in the range 1.7 – 2.2.%, he is really saying that – in ‘politician speak’, that we will have no growth, and possibly regression.

    As we all suspect that inflation – when calculated on a sensible basis, – is considerably higher than the government would have us believe, then I think we should be expecting something more drastic than a ‘slowing down’.

    I think a gypsy with a crystal ball would be more convincing than ‘Sweety Pie’ Darling…

  2. Just to follow up on today’s interest rate cut, – or should it be called a ‘non-cut’, as it will not make a bit of difference to the mortgagees who find themselves between a rock and a hard place.

    One spokesman for the CBI, on TV this lunchtime, suggested that what is now required, and he suggested is also favoured by the BoE, is a relaxation of borrowing limits for new borrowers, followed by two more interest rate cuts later this year! – are these people really so stupid that they are happy to prescribe more of the same poison that has nearly killed the markets and the economy? – of course they are!!

    While I was at first utterly astounded to hear him say this, it then dawned that he really didn’t believe that this was the answer, – it was plain old fashioned propaganda, in an attempt to, Canute like, stem the tide of the ecomomy going sour too quickly. Something along the lines of; give them a glimmer of hope, and they will be happy…

    How come these people all look the part, but can never actually play the part? One would be hard pressed to find anything that government has done in the past ten years that has been even remotely successful, or even honest…

    Today – the DT Opinion cartoon seems to make the point;

    LINK

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