Wednesday, June 18, 2008

The Governor of the Bank of England has issued a grim warning over Britain’s financial future

'Biggest Threat To Economy In 20 Years'

The Governor of the Bank of England has issued a grim warning over Britain's financial future.Speaking at the Lord Mayor's dinner to the bankers and merchants, Mervyn King said the country faces its biggest economic challenge in two decades. He said consumers could expect sharp rises in gas and electricity prices - and a steep fall in purchasing power with no pay rises likely. Mr King warned that families could expect to bear the brunt of the slowdown.

Posted by jack c @ 10:55 PM (743 views)
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5 thoughts on “The Governor of the Bank of England has issued a grim warning over Britain’s financial future

  • Yerhavingalaugh says:

    Blood, sweat and tears then!

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  • Should a comment ever be made ?

    Believe it or not, some French people still believe that Paris will be spared by the house price deflation. Because the Paris prices are 60% lower than the London prices. Well, did these people ever think about comparing the respective economic competitivities of these cities ? No, the 60% difference was no Paris delay. And France will experience the real estate deflation too. Later than the US, the UK or Spain. That is all.

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  • Given the pretty hopeless state of affairs they are presiding over, last night’s speeches were actually quite well crafted; although it was patently obvious that their respective speech writers had spent a long time comparing notes.

    The real problem facing UK plc is that the ‘inflation experiance’ currently in progress, affects different people to very different degrees. Worse is the fact that the two groups most severely affected are those on the lowest incomes, and those who are already over-indebted.

    Whilst it is possible to wag a finger at the feckless, those with incomes of less than 20k who have tried to manage their finances responsibly have real cause for grievance.

    The news about fuel prices this winter, coupled to the settlement agreed for the Shell tanker drivers (who did not seem underpaid before this strike..) puts a wind into the sails of the unions that they have not had for thirty years.

    Worse is that the Labour party itself, desperately needs a union bail-out if it is not to go bankrupt.

    Wage inflation, here we come…

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  • “although it was patently obvious that their respective speech writers had spent a long time comparing notes.”

    – perhaps Gordon Brown wrote both speeches.

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  • northern bear says:

    Wage inflation and industrial strife will become another of those ‘unforeseen’ events which begin to affect the rate of inflation. Like they say about toothpaste…………

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