June 30, 2009
The UK economy shrunk by 2.4% in the first quarter of this year which is the fastest rate of decline in over 50 years and is a damning indictment of the way the Government has managed the economy over the past 12 years.
All those comments by Gordon Brown that we were as a country better placed than others to weather the economic storm sound foolish to say the least. But what is even more worrying is the continued talk by Brown of trying to spend his way out of recession at a rate which will burden the country and taxpayers for decades to come. How will any future Government pay back a national debt to £1.4 trillion which is what we are likely to be left with if Gordon Brown has his way?
March 12, 2009
A report by City Investment bank Numis Securities says:
‘Despite UK house prices already having fallen 21% from the peak, we do not believe that the correction is anywhere near over.
Our core headline forecast is that UK property prices remain between 17% and 39% overvalued based on fair valuation. Moreover, history has shown us that when property…which has experienced a price bubble corrects, the price tends to fall below fair value for a period of time, as confidence in that market remains low. Prices could fall a further 40-55% if the over-correction was as bad as the early 1990s in our view
The bankruptcy of the UK is a very real probability as the UK Government is trying to stimulate a greater debt burden in a grossly indebted economy. We believe the scale of the macro imbalances in the UK means there is no prospect of a recovery in 2009 and we expect the UK to be mired in a deep recession through all of 2010.’
February 10, 2009
‘The economy is going to define our politics in Britain in the next year, the next five years, the next 10 and even the next 15 years. These are seismic events that are going to change the political landscape.
I think that this is a financial crisis more extreme and more serious than that of the 1930s and we all remember how the politics of that era were shaped by the economy.
We now are seeing the realities of globalisation, though at a speed, pace and ferocity which none of us have seen before. The reality is that this is becoming the most serious global recession for, I’m sure, over 100 years as it will turn out.’
Put Labour in power for 12 years and you end up with the worst recession in 100 years!
January 29, 2009
Fraser Nelson at the Spectator has produced this excellent analysis of the effects of all the economic measures announced by Gordon Brown in recent months. It’s essential reading and another indicator to show the ineffectiveness of Brown’s economic stimulus and proves that Brown has no idea what he is doing except announcing measures for the the sake of a few days publicity and in the hope of an increase in the polls.
Hat tip: Coffee House
January 23, 2009
The UK economy is now officially in recession after the release of growth figures this morning which show a 1.5% decline in GDP in the last quarter. This follows a drop in GDP in the previous quarter of 0.6% which means the official definition of two consecutive quarters of negative economic growth has been met.
The 1.5% fall is the largest since 1980 and shows what a perilous state the economy is now in. Gordon Brown refuses to accept that he has put an end to boom and bust but these figures make him look even more foolish when he continues to make claims that this recession is different to previous ones and that he is not to blame. The public won’t buy these feeble excuses. He was very keen to take credit for the ‘unprecedented growth’ as he put it of the UK economy during the first ten years of a Labour Government but is even keener to distance himself from the negative growth in the UK economy. When thousands of people are losing their jobs and their homes each week, it’s embarassing for the PM of this country to give interviews to the press and media and blame the United States and anyone else he can think of at the time and completely try and absolve himself of any blame for the current economic crisis. He should have the decency to be a little honest – but I suppose if he could he wouldn’t be Gordon Brown.
Just to make matters worse, the pound is trading at $1.35 this morning which is the lowest its been for about 25 years.
January 13, 2009
The British Chambers of Commerce has today published its Fourth Quarter Economic Survey which it says
‘highlight a frightening deterioration in the UK economic situation – they are the worst on record for both manufacturing and services since the survey was first published in 1989.There are no positive features in the Q4 results…It is clear that the UK economy is facing a very serious recession, and the downturn is deepening at an alarming pace.
David Frost, Director-General of the British Chambers of Commerce, said:
“These are truly awful results with the scale and speed of the economic decline happening at an unprecedented rate. We have to focus on holding the productive sectors of the economy together. If we are to climb out of this morass we will need a strong business base. A clearly defined National Recovery Plan will need to be rolled out as soon as possible, involving all politicians.’
BCC’s Chief Economist, David Kern, added:
‘The measures taken in recent months have failed so far to alleviate the downturn. The Q4 results signal big increases in unemployment next year. A prolonged recession can still be averted, if the authorities adopt urgent and additional forceful corrective measures.
Two things are obvious from the above statements, (1) Gordon Brown’s claim of the UK economy being better placed than others to withstand the downturn is utter nonsense and (2) the measures he has announced to soften the impact of the recession haven’t worked as a result of which we face a ‘prolonged recession.’