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Britain Shocked By Worsening Trade Deficit

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Shocked?

Not shocked at all - printy printy all the way to the poor house......

http://www.businessweek.com/globalbiz/content/may2010/gb20100514_518812.htm

Britain Shocked by Worsening Trade Deficit

After months of improvement, Britain's trade balance unexpectedly worsened in March, raising questions about the economy's recovery and competitiveness

By Sean O'Grady

Related Items

Britain's trade with the rest of the world swung unexpectedly further into the red in March, according to the latest figures from the Office for National Statistics. In a shock to City economists who had expected the improvement seen in recent months to pick up speed, the deficit on goods instead lurched to £7.5bn, from £6.3bn in February.

Imports, despite the slowness of the recovery, were robust, up by 5.2 per cent in value terms; exports were anaemic – a mere 1 per cent up. In volume terms, imports were up 3.5 per cent and exports fell by 1.8 per cent.

Adding in the service sector, the overall trade deficit widened from £2.2bn to £3.7bn

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Shocked?

Not shocked at all - printy printy all the way to the poor house......

http://www.businessweek.com/globalbiz/content/may2010/gb20100514_518812.htm

Britain Shocked by Worsening Trade Deficit

After months of improvement, Britain's trade balance unexpectedly worsened in March, raising questions about the economy's recovery and competitiveness

By Sean O'Grady

Related Items

Britain's trade with the rest of the world swung unexpectedly further into the red in March, according to the latest figures from the Office for National Statistics. In a shock to City economists who had expected the improvement seen in recent months to pick up speed, the deficit on goods instead lurched to £7.5bn, from £6.3bn in February.

Imports, despite the slowness of the recovery, were robust, up by 5.2 per cent in value terms; exports were anaemic – a mere 1 per cent up. In volume terms, imports were up 3.5 per cent and exports fell by 1.8 per cent.

Adding in the service sector, the overall trade deficit widened from £2.2bn to £3.7bn

Gordans legacy ..imports boosted by government spending...no growth in the real economy

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That's sad and predictable. The so called recovery is unravelling, bit by bit. What happened to last month's news suggesting a surprisingly fast recovery in manufacturing? The problem is, our manaufacturing base is only about 17% of the economy, when it should be 35% or more.

The trade deficit will have increased on account of the falling pound making it more expensive to import, combined with the tail end of Brown's pre-election pump up of the economy. In fact the trade gap will fall when the deficit is tackled, imports are squeezed, the pound eventually recovers and we export more.

Keynesian economics, as always, when taken to extreme has again been found wanting. It should have stayed where it belonged - in a school text book.

The real shocks are yet to come. Cannot think why any economist should be shocked by the news. It's obvious - the world has filled itself with phoney printed money and its' all coming home to roost. The ballon, so hurriedly re-inflated, is gradually deflating, apart from a few monetary puffs injected from time to time, in a feeble effort to pretend we can print and not pay our way out of debt.

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Britain's trade with the rest of the world swung unexpectedly further into the red in March, according to the latest figures from the Office for National Statistics. In a shock to City economists who had expected the improvement seen in recent months to pick up speed, the deficit on goods instead lurched to £7.5bn, from £6.3bn in February.

Maybe it's because too many of those banksters spent their annual bonuses on Ferraris and Porsches in March, rather than propping up the UK housing market...

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Keynesian economics, as always, when taken to extreme has again been found wanting. It should have stayed where it belonged - in a school text book.

Keynesian economics hasn't been used, please tell me where the surpluses where during the boom, of course boom couldn't have surpluses as he had abolished boom bust.

We have people pretending to be Keynesian with a real lack of understanding about what Keynes suggested.

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Keynesian economics hasn't been used, please tell me where the surpluses where during the boom, of course boom couldn't have surpluses as he had abolished boom bust.

We have people pretending to be Keynesian with a real lack of understanding about what Keynes suggested.

+1

The problem with Keynsian economics is that politicians simply cannot bring themselves to save during the booms. It may very well work in theory, but in a democracy/popularity contest, many of the sheeple will never vote for the prudent until they have to...and by the looks of lots of the comments in the papers, many of them aren't even capable of recognizing when they have to. One thing that the whole business of the past 10 years has awoken me to is just how many people have the "must have lollies now" mentality that I would associate with an 8 year old when it comes to personal finances. Truly depressing, especially as it means I have to suffer the governments they deserve.

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Shocked?

Not shocked at all - printy printy all the way to the poor house......

http://www.businessweek.com/globalbiz/content/may2010/gb20100514_518812.htm

Britain Shocked by Worsening Trade Deficit

After months of improvement, Britain's trade balance unexpectedly worsened in March, raising questions about the economy's recovery and competitiveness

By Sean O'Grady

Related Items

Britain's trade with the rest of the world swung unexpectedly further into the red in March, according to the latest figures from the Office for National Statistics. In a shock to City economists who had expected the improvement seen in recent months to pick up speed, the deficit on goods instead lurched to £7.5bn, from £6.3bn in February.

Imports, despite the slowness of the recovery, were robust, up by 5.2 per cent in value terms; exports were anaemic – a mere 1 per cent up. In volume terms, imports were up 3.5 per cent and exports fell by 1.8 per cent.

Adding in the service sector, the overall trade deficit widened from £2.2bn to £3.7bn

This is the deficit we should be really worried about, because if we can't pay our bills abroad, we're going to be without energy, food and other essentials.

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Some people on here are confused about Keynsianism and public sector deficits, and the quite distinct problem of overseas trade deficits.

Given our lack of manufacturing industry and our need to import so much, we would be running a balance-of-payments deficit under Milton Friedman.

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this is no shock at all. the pound has lost about 15% value in last few weeks, we are a net importer. everything is sold in dollar prices and we hence must pay more for every banana, shampoo and car coming in.

but hey we have low intrest rates saving the credit hungry consumer.

we cannot have both

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this is no shock at all. the pound has lost about 15% value in last few weeks, we are a net importer. everything is sold in dollar prices and we hence must pay more for every banana, shampoo and car coming in.

but hey we have low intrest rates saving the credit hungry consumer.

we cannot have both

Yes we can-Danny Blanchflower says so and he's a Professor you know.

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Keynesian economics hasn't been used, please tell me where the surpluses where during the boom, of course boom couldn't have surpluses as he had abolished boom bust.

We have people pretending to be Keynesian with a real lack of understanding about what Keynes suggested.

'Twas ever thus. Marx lived to say "If these people are Marxists, then I most certainly am not". Christ would have been deeply shocked at the behaviour of Christians. Etcetera.

In todays parlance it's Keynesian.

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+1

The problem with Keynsian economics is that politicians simply cannot bring themselves to save during the booms.

Some countries are doing exactly that. China, for instance.

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Some countries are doing exactly that. China, for instance.

Sorry, I should have been more precise. By politician, I meant someone elected or vying for election by the proletariat.

China isn't a democracy.

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Keynesian economics hasn't been used, please tell me where the surpluses where during the boom, of course boom couldn't have surpluses as he had abolished boom bust.

We have people pretending to be Keynesian with a real lack of understanding about what Keynes suggested.

8ollocks...we had some guy, cant remember his name, had us stick to the Golden Rules...Prudence Dark was his name?..anyway, the budget was to be balanced over the fiscal bicycle of sumfin, it was moved up and down the High Street when confident shoppers braved the snow and parked in the shed when they stayed at home..and under Mr Darko...still cant remember the name...people could afford houses as prices would never get out of control under his watch....

oh come on IIRO...surely you remember those times before the dark days of the LIBCON pact

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That's sad and predictable. The so called recovery is unravelling, bit by bit. What happened to last month's news suggesting a surprisingly fast recovery in manufacturing? The problem is, our manaufacturing base is only about 17% of the economy, when it should be 35% or more.

The trade deficit will have increased on account of the falling pound making it more expensive to import, combined with the tail end of Brown's pre-election pump up of the economy. In fact the trade gap will fall when the deficit is tackled, imports are squeezed, the pound eventually recovers and we export more.

Keynesian economics, as always, when taken to extreme has again been found wanting. It should have stayed where it belonged - in a school text book.

The real shocks are yet to come. Cannot think why any economist should be shocked by the news. It's obvious - the world has filled itself with phoney printed money and its' all coming home to roost. The ballon, so hurriedly re-inflated, is gradually deflating, apart from a few monetary puffs injected from time to time, in a feeble effort to pretend we can print and not pay our way out of debt.

UK Manufacturing as a share of GDP has been declining steadily since the 1970s. It was 34% of GDP then, 18% of GDP mid Nineties, and about 11% now. Similarly, manufacturing counts for only 11% of US GDP today.

The laissez faire attitudes of Anglosphere governments over the last four decades are coming home to roost.

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UK Manufacturing as a share of GDP has been declining steadily since the 1970s. It was 34% of GDP then, 18% of GDP mid Nineties, and about 11% now. Similarly, manufacturing counts for only 11% of US GDP today.

The laissez faire attitudes of Anglosphere governments over the last four decades are coming home to roost.

stop it, thats all been accounted for in increased public sector spending. doh!

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Some countries are doing exactly that. China, for instance.

Ta da!

The Keynsian savings are there - but in China and Germany etc.......

They're going to get spent whether they like it or not. As we have seen with the Germans, they don't 'get it' and they ain't gonna like it.

Tough.

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It seems manufacturing accounts for some 15% of the UK economy.

http://www.prospects.ac.uk/cms/ShowPage/Home_page/Industry_insights/Manufacturing/overview/p!ecLdff

Industry, that includes stuff like mining and oil I suppose, whereas "maufacturing" doesn't is some 23% of our GDP.

That compares with 27.1% for Germany, 23.1% for Japan, 21.9% for the USA and 19% for that much loved manufacturing powerhouse France.

These numbers are from the CIA's World Fact Book, brought to us by the idiots' guide.

I find that the endless wailing and gnashing of teeth about the demise of British industry reminds me of,

Edited by indirectapproach

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+1

The problem with Keynsian economics is that politicians simply cannot bring themselves to save during the booms. It may very well work in theory, but in a democracy/popularity contest, many of the sheeple will never vote for the prudent until they have to...and by the looks of lots of the comments in the papers, many of them aren't even capable of recognizing when they have to. One thing that the whole business of the past 10 years has awoken me to is just how many people have the "must have lollies now" mentality that I would associate with an 8 year old when it comes to personal finances. Truly depressing, especially as it means I have to suffer the governments they deserve.

There is one way to ensure fiscal discipline in politicians.

Instead of Cameron cutting the pay of ministers by 5% he should have been far more draconian.

Any government that runs a deficit means every MP gets an automatic 50% pay cut until the budget is balanced again.

Would make them think twice about running up lots of debt to look good at election time...

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Guest The Relaxation Suite

Shocked?

Not shocked at all - printy printy all the way to the poor house......

http://www.businessweek.com/globalbiz/content/may2010/gb20100514_518812.htm

Britain Shocked by Worsening Trade Deficit

After months of improvement, Britain's trade balance unexpectedly worsened in March, raising questions about the economy's recovery and competitiveness

By Sean O'Grady

Related Items

Britain's trade with the rest of the world swung unexpectedly further into the red in March, according to the latest figures from the Office for National Statistics. In a shock to City economists who had expected the improvement seen in recent months to pick up speed, the deficit on goods instead lurched to £7.5bn, from £6.3bn in February.

Imports, despite the slowness of the recovery, were robust, up by 5.2 per cent in value terms; exports were anaemic a mere 1 per cent up. In volume terms, imports were up 3.5 per cent and exports fell by 1.8 per cent.

Adding in the service sector, the overall trade deficit widened from £2.2bn to £3.7bn

There is no way back for Britain. As some of us have tried to say over and over again on here and elsewhere, the United Kingdom as previously known is finished. It a chronically overpopulated little state with hardly any manufacturing and basically zero resources. It also happens to have one of the biggest debts in the world and a staggeringly massive gap between rich and poor unknown in most other nations. On top of all that it has a shit climate and rude people and is not even an independent sovereign state.

Brits need to tune into the new politics - a poverty-stricken population of angry drunk plebs rioting and striking.

Spin that.

Edited by Tecumseh

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It seems manufacturing accounts for some 15% of the UK economy.

http://www.prospects...erview/p!ecLdff

Industry, that includes stuff like mining and oil I suppose, whereas "maufacturing" doesn't is some 23% of our GDP.

That compares with 27.1% for Germany, 23.1% for Japan, 21.9% for the USA and 19% for that much loved manufacturing powerhouse France.

These numbers are from the CIA's World Fact Book, brought to us by the idiots' guide.

I find that the endless wailing and gnashing of teeth about the demise of British industry reminds me of,

Lies, damned lies and statistics. The Yanks count burger flipping and book printing as 'manufacturing activities'.

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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