Monday, January 21, 2008
UK economic outlook by Roger Bootle
"In my professional life there have been three phases of gross delusion about the performance of our economy. The first was the Barber boom of the early 1970s; the second was the Lawson boom of the late 1980s; and the third is the Brown boom that we have just lived through. The extent of the macroeconomic imbalances now is just as great as it was then. The balance of payments gap, as a share of GDP, is as large, and the boom in real house prices has been bigger. Government borrowing has not surged - yet - but the signs are ominous" (we saw the first £25bn in emergency bonds announced today) "The end of illusion means the end of what I called, in the book published under that very name, "money for nothing"