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Gary Wonka

The Sick Man Of Europe – United Kingdom (Joining The Pigs)

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The sick man of Europe – United Kingdom

UK’s economy is deteriorating rapidly. The UK unemployment rate is hitting 7.8% in Jun 2010. We are rapidly running out of things to sell.

1. UK’s economy has traditionally been (‘traditionally’ as in Post ‘big bang’) relied upon the service sector, namely the banking sector to create meaningful ‘export’ (of service) to balance our trade. We all know that the banking sector remained fragile and has been the recipients of government handouts.

2. We had long reached peak oil production in the North Sea. We are seeing sharp decline over the last decade or two.

3. The public sector employed up to 40% of the work force. In two days time, we are going to see a budget cut across most departments at 10- 25% or more. However, the coalition government is right that the current level of deficit is not sustainable.

4. BoE has been lying to us all along. They lied about the inflation being ‘temporary’ phenomenon. Inflation is here to stay. They pumped £200 billion into diluting the value of the current currency in circulation. On top of this, Oil (Brent Cruel) has now reached over $80 per barrel. Food is getting more expensive. It is not just the UK but the whole world is running out of Food and Oil. Many commonalities will only become even more expensive.

In short, I think inflation is here to stay in short to short-medium term and it would get worse if the BoE restart their QE2. Unemployment will get worse in the next two years. We will officially in ‘recession’ / ‘downturn’ / ‘depression’ (whatever you like to call it) in 2011. The value of our home will continue to decline in real and nominal term (It may retain value in nominal term if the BoE begin QE2 but there is nothing they can do that would increase their value in real term).

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  • 144 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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