Friday, February 20, 2009

Good Morning

Britain at risk of 10 year recession

Britain is at "serious risk" of entering a decade-long recession similar to that experienced by Japan in the 1990s, the outgoing deputy governor of the Bank of England has warned.

Posted by sovietuk @ 07:44 AM (1295 views)
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7 thoughts on “Good Morning

  • Nice of good ol’ Johnny to tell us on the way out!

    I like the way that industrialists are moving away from using weasel words to being more critical of the handling of the economy…

    “Richard Lambert, the director general of the Confederation of British Industry, said: “The Government appears to have been fighting a series of forest fires rather than building a platform for economic recovery. There’s little sense of a coherent strategy about what’s happened to date.”

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  • Eternal Sceptic says:

    The way the truth is slowly coming out is a bit like chinese water torture, a constant dribble of progressively worse news. It also seems that each attempt to find a solution ends up more akin to putting out a forest fire by spraying it with napalm. Definitely a case of off to hell in a handcart.

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  • Well, he, (the Deputy Governor) is/was well placed to know the extent of the planned printing which will of course devalue the pound sterling even further. A policy incidentally, which is completely insane. The only saving grace is that by telegraphing intentions well in advance, the wise investor has been given a chance to put savings into something other than pound notes.

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  • A couple of years ago I had a stab at estimating what proportion of UK GDP was the product of unsustainable debt growth, both public and private, and also as a direct consequence of trade imbalance.

    Not an easy sum, but after looking at it several ways, I kept coming back to the figure of 20%.

    I also considered the question ‘what is the sustainable level of UK GDP growth’ – and concluded that to be about 1%.

    So, if I’m right, it will be a very long time before we have the same level of perceived prosperity. Much depends on the willingness of government to radically re-think the way this country is run, and make real inroads into cutting red tape, and the armies of people who do nothing useful for a living..

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  • GT @ 3….. so what is the ‘wise’ investor to put his savings into rather than pund notes? Your views please.

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  • but we were promised it would be over by april by mr prudent “Grodon Brown”

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  • To bluebeach, I would say that you could do a lot worse than buying gold sovereigns. It’s not an overly complicated subject and some study will bring you up to speed. The bullion dealers have fixed their prices for today – if you want to buy bullion grade sovs, they will cost you about £175 each, or if you’re selling , they will pay you about £158 today. Towards the tail end of last year, sovereigns were selling for under £120. That’s some profit and if the price of gold drops a bit (unlikely in the present climate), – well you still have your gold. The gold price is climbing gently with some urgency at present, but it’s got a long way to go yet. You ain’t seen nothing as the saying goes. A school of thought regards gold as under priced at present. Gold Bullion dealers are doing record business in these strange times, both buying and selling. I was talking to one such gold bullion dealer who I know pretty well, earlier this week. The time will come, when the price goes into the stratosphere, I would suggest that will then be ‘bubble’ time for the masses and that will not be the time to buy into gold. There does however look to be a little time left before that happens.

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