Zero growth predicted by The Old Lady

So the BoE has decided that for GB zero economic growth is on the cards for 2012.

Our exports are plummeting, our imports continue to far exceed them. And yet still the demands from the Loonie-Left from the likes of Ed Balls continue for inflation of the economy.

Presumably this to be based on even MORE borrowing to pile on top of the mountain of debt delivered by the idiot Brown and that we now have to borrow even MORE in order to pay interest on and periodically refresh as bonds fall due for repayment.

In Greece the public are up in arms about the prospect of having to live within their means based on what they earn and not what they can swindle out of the ECB and especially the German and now duplicity is piled on dishonesty at all levels as agreements reached on which bail-outs were based are simply not being abided by.

The Spanish are also whining about being expected to live within their earned means and not be, like Greece, parasitic and scrounge off the ECB and especially Germany.

Now the French Socialist government are adopting a policy based on soaking the well off that will miss the what is required to solve the root cause of the problem, and will be totally counterproductive as the wealth earners leave the country in droves - as indeed they should and make matters even worse for the French.

In the US Obama has pushed the Federal Reserve to print money with nothing behind it other than sentiment, but (hopefully) the disastrous Obama reign will end very soon and sanity and good governance come back into play.

The only thing is that when it does ------ life will become at least interesting as money once more starts to link to earning capacities and no longer vapour accountancy.

Should the Rt. Hon. Member for Tatton be replaced as Chancellor?

If I was in his position I would be praying for relief from the poisoned chalice wherein doing the right think just sees him being criticised more and more, especially from the political group who created most of the problems that he must now resolve.

There really is only one solution – accept a living standard in accordance with what can be earned.

Re: Zero growth predicted by The Old Lady

Erinaceous many of us have done that and coped ok. I think people have forgotten how to or never learnt.

There is too much 'I want' rather than 'I really need but can wait'.

Re: Zero growth predicted by The Old Lady

Why is it not realized that nothing grows "Ad Infinitum" including economies. Plans need putting in place to take account of this simple premise, and folks need to move on from analyzing micro percentage movements on a balance sheet, and selling this information as "News".

Re: Zero growth predicted by The Old Lady

People have to realise that you cannot reverse 13 years of total financial ineptitude in just a couple of years, and it seems reasonable that as pretty much everyone benefited from the boom generated by Labour profligacy, then everyone must help to pay the bill. Until that bill is paid then we must put up with things, and the sooner we suffer the pain then the sooner we will recover...

Re: Zero growth predicted by The Old Lady

Very true Plantman, but it seems to be the Structural Deficit that is of greatest concern.

Re: Zero growth predicted by The Old Lady

There really is only one solution – accept a living standard in accordance with what can be earned.

I wonder if you would apply that philosophy to the Bankers and other so-called Captains of industry matey???

Re: Zero growth predicted by The Old Lady

LOL! They do! If Brown (of nose picking in The House fame) hadn't ruined the management and supervision being provided by The Old Lady then there would not have been a UK Banking crisis.

Re: Zero growth predicted by The Old Lady

Partly right, I am not convinced that a bank looking after banker mates is the way to go, I quote from an excellent article in THE DRUM:

Quote

In fact, Australia's APRA could teach them what to do, and it's all about vigilance, not rules.

APRA has a wonderfully named system called PAIRS/SOARS, which stands for Probability and Impact Rating System (PAIRS) and the Supervisory Oversight and Response System (SOARS). Basically, and to cut out the jargon, APRA is all over them like a cheap suit, constantly issuing speeding tickets and forcing changed behaviour.

Unless you're going to break the banks up so there's lots of little ones instead of really big ones, that sort of principles-based, hands-on regulation is the only way to go.

It works in Australia but would it work in the United States? Perhaps not: money doesn't talk there, it shouts.

End of Quote

The proof of the pudding is in the eating - the Australian economy, even in the GFC, has been going gangbusters. (it can't last of course but they reckon another decade of growth) None of our banks were affected by the GFC. You need a regulator with teeth - now if only the broadcasting regulator had the same teeth...

BTW APRA = Australian Prudential Regulation Authority

Re: Zero growth predicted by The Old Lady

All problems will be solved by rampant inflation - just watch the value of your savings evaporate. Those in debt will be rescued by those who were "prudent" (daft) enough to stay solvent and put a bit by for old age. Should make us all feel proud of our rulers.