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Opposed By Four Powerful Headwinds, The Economy Staggers Towards Trouble

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http://business.timesonline.co.uk/article/...1812724,00.html

Opposed by four powerful headwinds, the economy staggers towards trouble

As soon as British economic policy was freed from the straitjacket of the European exchange-rate mechanism in 1992, I became an optimist — and for most of the subsequent 13 years, this contrarian optimism proved absolutely right. Towards the end of last year, however, I started having doubts. What with interest rates rising, the property market stalling, oil prices soaring and public finances veering out of control, the economy seemed to be heading for trouble.

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http://business.timesonline.co.uk/article/...1812724,00.html

Opposed by four powerful headwinds, the economy staggers towards trouble

Competition, flexible labour, immigration, proactive monetary policy and the global demand for knowledge-intensive services will all help Britain to prosper in the long term.

Competition = outsourcing and lower wages here

flexible labour = longer hours and lower wages here

immigration = lower wages here

Labour better let in 10 million more immigrants and give them the vote cause they will be the only people voting for them at the next election (and the brainwashed working class morons who dont know any better. )

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Whilst the headlines are unquestionably bearish, Anatole Kaletsky has been making some very stupid noises lately - and if you dig into that article, there are some horrible inconsistencies, although he might be just beginning to wake up and smell the coffee.

He has been repeatedly calling for interest rate cuts for the last few months. See here and here and here.

He is a one-man-interest-rate-cut-demanding-machine © George Foreman. I notice in todays article the reason he gives for his pessimism is that he believes Gordon Brown has made it impossible for the BoE to cut interest rates as housing is not in the inflation mix. Hmmm was Kaletsky demanding this a few years ago while HPI was booming, and high interest rates would have ensued?

He pinpoints the underlying problem as "the inevitable day of reckoning that would follow Britains debt-financed consumer boom". And his solution is to cut interest rates? Pray tell, Anatole, what would be the result of lowering interest rates? Less debt? I think not! His "solution" would merely inflate the bubble further, making the inevitable crash all the bigger when it finally arrives.

Seriously, this guy wouldn't understand simple logic and reasoning if someone came along and slapped him in the face with it.

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How does this guy get work writing for The Times?

I can think of many regular posters on HPC who could write a far more insightful article about the current state of the UK economy.

Another case of bought journalism?

Glad I don't buy this drivel anymore.

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  • 337 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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