Tuesday, Jul 30, 2013

321 - Liftoff

Telegraph: UK economy close to 'escape velocity', say top economists

Former Bank of England deputy governor Sir John Gieve and past rate-setters Dame Deanne Julius and Charles Goodhart claim the economy has already reached or was about to reach “escape velocity”. Meanwhile later in the article Sir John is revealed to say that he was “50,50” on the issue of escape velocity, meanwhile others said. “forget all that rebalancing, we’re going back to what we do best - debt fuielled consumer spending based on housing. What could go wrong?” In the comments 'I especially like the BOOM glasses and the giant debt rocket sailing into the sky - what a joke of an article'.

Posted by enuii @ 05:56 PM (5002 views)
Add Comment
Report Article


1. Godofserpents said...

Love the final comment :s

" “The Government and the Bank are working together to get households back on the crack,” Danny Gabay, Fathomdirector, said. “[They are sayin] forget all that rebalancing, we’re going back to what we do best - debt fuielled consumer spending based on housing. What could go wrong?” "

Tuesday, July 30, 2013 06:45PM Report Comment

2. hpwatcher said...

get set for [real] inflation!

Tuesday, July 30, 2013 06:50PM Report Comment

3. alan said...

Sorry to be a bore, but the second and third largest economies in the world have stalled with stock market reverses.

In China's case, can anyone explain how a country can be consuming electricity at 2.9% growth and hit GDP growth at 7%?

...and I nearly mentioned the E word, didn't I....?

Someone suggested stagflation on here last week, so I can't claim to be original.

Tuesday, July 30, 2013 07:52PM Report Comment

4. khards said...

Good oh, time for interest rate rises then.

Tuesday, July 30, 2013 10:08PM Report Comment

5. hpwatcher said...

growth will kill the US.

Wednesday, July 31, 2013 07:02AM Report Comment

6. hpwatcher said...

...and the UK

Wednesday, July 31, 2013 07:03AM Report Comment

7. Panda said...

It's sad. Because at the root of a lot of this is a very stupid population that are headed for far nastier stuff than you have seen so far. The BBC and the Guardian both ran articles about this sort of thing, but mixed incoherently with the olympics, the royal baby, and things that might possibly concern people with a preoccupation with the kinds of magazines that get dumped at the place where you queue at the supermarket checkout. But nothing is growing; nothing is being designed, nothing is getting better. You could put the whole country on psychotropic drugs and absolutely nothing would get improve. This is no better.

Wednesday, July 31, 2013 09:42AM Report Comment

8. libertas said...

Escape velocity to the upside or downside?

Recent articles about devaluation of sterling to boost exports and signs in the charts that this is imminent suggest that they may be right. Only problem is, that we will see a recovery of the export market and collapse of the domestic market as our exports become more affordable to foreigners, whilst our core market, the purchasing power of our 60million residents collapses.

What we actually need is a strong pound combined with low tax and inflation to develop a sustainable domestic market. It, focused on quality, will create products worthy of value added premiums. We must compete on quality, not price, since there is always another third world country able to undercut our products and services. All of the strong economies in the planet have a strong currency. Look at Canada, Australia, Swizerland, and to a relative extent, USA. On the contrary, look at all the weak currencies, Mexico, Argentina, Zimbabwe, Nigeria, North Korea. You get the point.

When your government decide that the solution to their fortunes is to impoverish the people via devaluation, you know you live under tyranny. Allowing government to get into debt to bail our global corporations guarantees that situation.

Wednesday, July 31, 2013 09:52AM Report Comment

9. libertas said...

One reason why strong currencies are so valuable today is, that value added and low cost base is produced today by investment in expensive technology. It is technology, not labor that make world class products. To invest in high end technology, you need a strong economy and a strong currency.

Wednesday, July 31, 2013 09:54AM Report Comment

10. mark wadsworth said...

That's probably the worst analogy they could have thought up, most rockets crash back down sooner or later.

Wednesday, July 31, 2013 10:07AM Report Comment

Add comment

  • If you do not have an admin password leave the password field blank.
  • If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines
Admin Password
Email Address

Main Blog | Archive | Add Article | Blog Policies