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Gordon Is Out Of Cash (imf)

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Jesus, thats like a baseball bat between the eyes for Brown, wasnt the sodding imf saying the recession was over like 2 days ago.

Idiots.

Yes the IMF is all over the place.

April: We're all doomed (why?)

July: We're all saved (double why?)

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Yes the IMF is all over the place.

April: We're all doomed (why?)

July: We're all saved (double why?)

Bad news to prepare the public

Public skives off work/doesn't bother applying for jobs as they think what's the point

Good news to motivate the public.

Basically, got to give the unemployed hope whilst preparing the employed for disaster.

Edited by Soon Not a Chain Retailer

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Here it is in full:

UK can't afford another fiscal rescue, warns IMF

Britain is the world's only leading economy unable to budget for any kind of economic rescue package next year, the International Monetary Fund has warned.

By Edmund Conway

Published: 9:15PM BST 11 Jul 2009

In calculations that will spark further criticism over the state of the public finances, an IMF paper presented to world's leaders has laid bare how the UK's indebtedness has left it unable to provide the vital stimulus the economy could need over the next 18 months.

Every other G20 country apart from the UK and Argentina has been able to budget for temporary spending increases or tax cuts next year to help drag their economies out of recession, according to the paper, presented to a recent G20 meeting in Basel. Even Germany, whose finance minister Peer Steinbruck has accused the UK of "crass Keynesianism", plans to spend a full 2pc of its economic output on such measures next year.

The news underlines the fact that with Standard & Poor's having warned recently about the parlous state of the UK accounts, Britain has very little leeway to afford new emergency measures. However, sceptics will warn that it also makes it doubly likely that in the pre-Budget report this autumn the Chancellor will announce extra measures to keep Britain in line with its G20 counterparts.

The UK entered the recession with the worst structural budget deficit in the Western world, leaving it with little room to borrow in order to lessen the impact on profits and unemployment. Although the IMF last week said it now expects the British economy to return to growth next year, its calculations over the implications of the deficit underline the fact that any recovery will be tepid.

A Treasury spokesman said: "As the Chancellor has repeatedly said, we are supporting the economy now while living within our means, including by halving the deficit over five years."

As Labour and the Conservatives prepare themselves for a likely general election next June, political debate has become dominated by their respective plans to cut spending over the coming years. However, the IMF figures underline the fact that even before the threat of spending cuts, Britain is facing a comparative squeeze next year because of its fiscal position.

According to the IMF calculations, Britain is spending 1.5pc of gross domestic product on emergency measures this year, largely constituting the temporary VAT cut. This compares to 2pc in the US, 4.1pc in Russia and 2.7pc in Japan. The average stimulus within the G20 next year is 1.6pc, compared with Britain's zero percent contribution.

The IMF has already warned the Government that its plans to cut public debt do not go far enough. In its most recent assessment of the UK economy, the IMF said the Chancellor must start paying back debt significantly earlier than projected in April's Budget. The organisation favours sharper spending cuts and bringing the Budget back into balance over an electoral term.

The Organisation for Economic Cooperation and Development has also made grim predictions about the state of

Britain's public finances. It is forecasting the fiscal deficit next year will climb to 14pc of GDP, higher than Ireland or Iceland, and the worst in the industrialised world.

Oh to be a fly on the wall at No. 10.

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Lucky for us the First stimulus was sufficent to have saved us by christmas. (IMF....last week)

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The UK entered the recession with the worst structural budget deficit in the Western world, leaving it with little room to borrow in order to lessen the impact on profits and unemployment.

---

It's alright nothing to see here, have you guys updated your facebook page about who you are going to vote off in the Big brother eviction? :blink:

Edited by Pseudo Lord Sandwich

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July 9th Recesson will be over by Christmas

Britain’s recession will end this year, with the economy returning to anaemic growth in 2010, the International Monetary Fund (IMF) said yesterday, as it upgraded its view of prospects for the UK and other leading economies.

In a boost for Alistair Darling’s predictions that Britain’s worst postwar slump will be over by Christmas, the IMF sharply raised its UK forecasts for next year.

How does that work with :

UK can't afford another fiscal rescue, warns IMF

Britain is the world's only leading economy unable to budget for any kind of economic rescue package next year, the International Monetary Fund has warned

More like this one from April 2009 IMF forecasts long housing slump :

Britain's homeowners must brace themselves for a prolonged slump in the housing market, according to the International Monetary Fund, which delivered a grim assessment of the UK economy this weekend, in stark contrast to Alistair Darling's prognosis.

While the chancellor insisted in last week's budget that he expected to see green shoots before the year is out, the Washington-based lender believes the housing crash is far from over, with property still over-valued.

House prices have already fallen by around 20% in the UK; but despite the rising optimism of Britain's estate agents, the IMF said the housing downturn in the UK, and equally damaging crashes in Ireland and Spain, probably have "a considerable distance left to run".

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Jesus, we'll be lucky to see one quarter of economic growth in the next 20.

But I thought things were booming people queuing up outside the EA in Truro , "more like boomtimes" I read this week, do you think they might be wrong?

Still Gordon's suggesting lenders give 100% LTV's again so that will be OK then especially when the BOE have said:

"The Government must consider pumping more cash into struggling British banks and conceivably nationalise more of them, or consign itself to years of insipid growth, the Bank of England Governor has warned

Mervyn King said although banks' survival had been assured by recent bail-outs, they would not start lending freely unless more capital was pumped into their balance sheets.

Mr King said: "There is a big difference in practice between the levels of capital banks need to be stabilised... and those required to persuade banks to exhibit normal levels of risk-aversion. How big that gap is is impossible to say... but it looks as if it will be quite big.

PRICELESS ISN'T IT !!

In May we had More Banks May Have To Be Nationalised Says The IMF:

Alistair Darling must stand ready to pump more capital into Britain's beleaguered banks, perhaps nationalising other high street names, the International Monetary Fund has warned.

So how does that work with

UK can't afford another fiscal rescue, warns IMF
;)

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Yes the IMF is all over the place.

April: We're all doomed (why?)

July: We're all saved (double why?)

The IMF have different people writing the reports which is why there is no consistency, you also have to factor in the unpredictability of economics which requires everyone to a large extent to guess, plus mix in some reports are clearly produced for cheerleading purposes July, we're all saved big G8 meeting, at the last one I seem to think we had some happy clappy reports from the IMF.

We are all screwed because no one has tackled the issue yet, the PROBLEM IS DEBT.

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All you need to know about IMF Forecasting

Picture_4.png

Using my Famous, Bloo Loo Prediction kit, I find a trend, which is not good for the world economy.

Add in my secret formula ( from Ray Boulger himself) I find green shoots at the end of the rainbow, falling unemployment and rising houseprices

post-10213-1247385208_thumb.png

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"There is a big difference in practice between the levels of capital banks need to be stabilised... and those required to persuade banks to exhibit normal levels of risk-aversion. How big that gap is is impossible to say... but it looks as if it will be quite big.

Come again Merv? - 'persuade' is it? :angry: :angry:

--- If the peasants were educated they would all be on the streets.

What an insult.

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The IMF have different people writing the reports which is why there is no consistency, you also have to factor in the unpredictability of economics which requires everyone to a large extent to guess, plus mix in some reports are clearly produced for cheerleading purposes July, we're all saved big G8 meeting, at the last one I seem to think we had some happy clappy reports from the IMF.

We are all screwed because no one has tackled the issue yet, the PROBLEM IS DEBT.

We commented before how the last upbeat statement neatly coincided with the G8 meeting.

There is an interesting paper on the Mises website which explains what options are available in this situation.

Basically you can increase taxes which depresses economic activity and is counter-productive. You can borrow but the UK has already breached its overdraft agreement and is close to having a failure in a gilts auction. Finally you can debase the currency which is a stealth tax on peoples savings. This however threatens the UKs ability to borrow (unless it agrees to pay back in a more solid currency or gold) because no one wants to be paid back in worthless paper.

It looks like Gordon has tried all three options up to the limit already. The tax hikes already in the pipeline will wipe out any hope of recovery in manufactureing and investment and lead to a gradual drain away of our most able citizens. Tax cuts is what is actually needed in a depression. Borrowing is getting more difficult. As the world begins to realise we are a basket case lead by a nutcase and at risk of downgrading higher rates will have to be offered on gilts and maybe even paid in dollars and finally we see the reason the BOE held back on currency debasement - faith in Sterling is so fragile they must have thought there was a risk of a run on the currency once the real state of affairs became known.

It is worrying we are now grouped with Argentina. They have defaulted on loans and public sector pensions. Personally I feel more at home being grouped with Zimbabwe because at least we would know where we stand :ph34r:

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We commented before how the last upbeat statement neatly coincided with the G8 meeting.

There is an interesting paper on the Mises website which explains what options are available in this situation.

Basically you can increase taxes which depresses economic activity and is counter-productive. You can borrow but the UK has already breached its overdraft agreement and is close to having a failure in a gilts auction. Finally you can debase the currency which is a stealth tax on peoples savings. This however threatens the UKs ability to borrow (unless it agrees to pay back in a more solid currency or gold) because no one wants to be paid back in worthless paper.

It looks like Gordon has tried all three options up to the limit already. The tax hikes already in the pipeline will wipe out any hope of recovery in manufactureing and investment and lead to a gradual drain away of our most able citizens. Tax cuts is what is actually needed in a depression. Borrowing is getting more difficult. As the world begins to realise we are a basket case lead by a nutcase and at risk of downgrading higher rates will have to be offered on gilts and maybe even paid in dollars and finally we see the reason the BOE held back on currency debasement - faith in Sterling is so fragile they must have thought there was a risk of a run on the currency once the real state of affairs became known.

It is worrying we are now grouped with Argentina. They have defaulted on loans and public sector pensions. Personally I feel more at home being grouped with Zimbabwe because at least we would know where we stand :ph34r:

You mean facing starvation and cholera?

Brown is panicking the money pit has run dry and he really doesn't know what to do, he has a huge govt Leviathan that needs feeding and he's making promises that he can't keep. We are in deep deep sh1t.

I think being linked with Zimbabwe or Argentina will soon be an aspiration as we appear to be heading towards being a 3rd rate banana republic.

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You mean facing starvation and cholera?

Brown is panicking the money pit has run dry and he really doesn't know what to do, he has a huge govt Leviathan that needs feeding and he's making promises that he can't keep. We are in deep deep sh1t.

I think being linked with Zimbabwe or Argentina will soon be an aspiration as we appear to be heading towards being a 3rd rate banana republic.

Well I don't really know much about Argentina.

However if we follow the Zimbabwe model we could end up with an unelected leader, violence against peaceful protestors, massive unemployment, currency debasement and erosion of savings and epidemics of infectious disease

Oh $hit

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You mean facing starvation and cholera?

Brown is panicking the money pit has run dry and he really doesn't know what to do, he has a huge govt Leviathan that needs feeding and he's making promises that he can't keep. We are in deep deep sh1t.

I think being linked with Zimbabwe or Argentina will soon be an aspiration as we appear to be heading towards being a 3rd rate banana republic.

On past form GB will simply deny all this and carry on regardless until something happens that he can't deny. What might that be? A gilts strike? A huge rise in unemployment? Severe deflation/inflation?

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On past form GB will simply deny all this and carry on regardless until something happens that he can't deny. What might that be? A gilts strike? A huge rise in unemployment? Severe deflation/inflation?

Wouldn't that put us more on a par with North Korea? Even than everything is denied.

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No .. you are all wrong .. Charlie Bean is at the moment embarking on a nationwide educational spree .. to explain that QE is all good and is the answer to all our problems .. the world has to be educated that QE is good .. if they say otherwise, they are wrong and need re-education . LA la la la la ...

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No .. you are all wrong .. Charlie Bean is at the moment embarking on a nationwide educational spree .. to explain that QE is all good and is the answer to all our problems .. the world has to be educated that QE is good .. if they say otherwise, they are wrong and need re-education . LA la la la la ...

I like Mr Bean. Is he still driving the Mini?

Will he pull really funny faces when he tries to explain how the money supply will grow but the real value of the cash you hold will shrink?

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Bad news to prepare the public

Public skives off work/doesn't bother applying for jobs as they think what's the point

The country is in trouble once we reach the point that it's not worth working anymore.

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