Thursday, March 21, 2013

Osborne digs deeper hole

U.K. Gambles on Yet More Debt

Osborne "is banking on growth recovering to 2.3% in 2015 and 2.7% in 2016, driven by a robust recovery in business investment to 8.6% by 2015 from 1.9% this year, and a startling turnaround in residential investment from minus-5.4% last year to 8.9% by 2015. "This looks highly optimistic. "

Posted by stuartking @ 12:38 AM (1433 views)
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4 thoughts on “Osborne digs deeper hole

  • If you are not a subscriber, google title and then click on the graph alongside the title in the search list. This bypasses the subscription for me.

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  • tiburonsmoke says:

    It’s an act of desperation. Look at the economic growth he’s predicting. Not a hope. What he’s actually counting on is hyperinflation. He’s expecting hyperinflation because that’s his intended outcome. He’s engineering it.

    Higher house prices won’t help. Wages are falling. Unemployment is soaring. Most first time buyers are priced out regardless. When interest rates go up – and they will – more people will lose their homes. More repossessions will precipitate an even worse crash. The banks won’t care. They get a bailout (courtesy of the taxpayer) and they get to keep the house, marked to market. In effect, this is another Cyprus style bail-in. Post-dated. Clever b*stards. They’re going to sucker in the last of the gullibles.

    Precious metals are the best play here. This budget has virtually guaranteed hyperinflation. If he wasn’t expecting hyperinflation, and trying to engineer it, he wouldn’t be so quick to backstop these mortgages. In fact, it’s just one more way to monetize the debt.

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  • I kinda thought that this is how sub-prime started….

    Contnully pushing up prices, lend to anyone (credit checks can be stringent or lax, its how the staff are instructed to deal with the applications) with 5% deposit, etc.

    I wonder why precious metals have stayed so low with all the talk of cash grabs (Cyprus)? I guess there is a steady stream of gold selling, as it’s so hard to “cheat on” the gold price. I’m just buying coins on the dip. Gold $1900 by Christmas, I think (anyway, it’s my money).

    If public service pay is capped, then high inflation will result in a drop in real pay. How will the staff in the public service organisations of this country be able to afford to make that leap?

    ..enter Kirsty and Sarah (..stage right) with cameraman.

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  • What does Osborne care if the economy eventually crashes with debt overload? All bases are covered for the big money interests that matter to the top Cons. House prices rise, bankers gain. House prices crash bankers get the foreclosed properties and their losses are written off. When the economy eventually collapses he is off to the riviera with his Bullingdon chums for a life of opera and first growth claret and well remunerated board positions. He might snap up a few cheap properties at that pont too a la Blair.

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