Thursday, Mar 13, 2008
Why Britain can’t weather a global recession
MoneyWeek: Why Britain can’t weather a global recession
If you had watched the Budget yesterday without knowing anything else about life in Britain, you might have been convinced that this is the place to be if global recession hits. Sadly, it isn't, says John Stepek.
Posted by damien @ 11:09 AM (536 views) Add Comment
6 Comments
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1. p. doff said...
Lookintomyeyes lookintomyeyes myeyes don'tlookaroundtheeyes lookintotheeyes, and snap yer under. ------------------The British economy has never been better, thanks to me and Gordon. There are some risks arising elsewhere in the globe but that's all the fault of the USA, not us. Vote Labour again next time --------------------and snap, yer back in the room.
2. lierbag said...
Globalisation has ensured that the chain is made of nothing but weak links - and ultimately, they're all attached to the US.
Nouriel Roubini, Professor of Economics at New York's Stern School of Business, joins the dots . . .
'Ultimately, in today's flat world, interdependence boosts growth across countries in good times. Unfortunately, these trade and financial links also mean that an economic slowdown in one place can drag down everyone else. Not every country will follow the United States into an outright recession, but no one can claim to be immune'.
http://www.nationalpost.com/news/story.html?id=350930&ref=patrick.net
3. Landedgentry said...
Wow. I'm buying it.... this little insignificant island can survive (and even prosper!) in a downturn of the richest , greatest and most powerful nation of planet earth.
4. rickyb said...
If economic growth has been cut to around 2% or less and CPI is heading towards 3%, does this not mean that economic growth is actually already negative? Does anyone on here know how the economic growth figures (presumably GDP growth) are calculated and whether they are corrected for inflation?
5. cyril said...
ricyb - GDP is actually a measure of inflation itself (see HM Treasury website). If you have no real growth in the economy, you can still have 'inflationary GDP' growth. I am no economist but I would agree with your basic point - if headline inflation iremains higher than GDP for any length of time, the money must be devaluing (= real inflation).
6. plato said...
A comment on Darling's Speech.
"It's something that only a fool, a liar or a politician would say"
Well done John Stepek. You speak for millions. How have we reached such a stage in society ?