UK Economy: You’ve never had it so confusing…

January 6th, 2012

FAKE NEWS for the Zionist agenda

By
Ruth Sunderland

Last updated at 9:00 PM on 5th January 2012

Confusing outlook? The Treasury insists that there are plenty of bright spots in the economy

Confusing outlook? The Treasury insists that there are plenty of bright spots in the UK economy

A debate is raging over the UK economy. The Financial Times reckons the ‘Pollyannas’ looking on the bright side are outgunned by Cassandras foretelling doom.

The Treasury insists that, on the contrary, there are plenty of bright spots. Economists at Goldman Sachs even reckon that by 2050, the UK economy will be the biggest in Europe, and we will be one of the most prosperous nations on the planet . (That will be thanks to higher than expected investment, and a hard-working population of immigrants who will help defray the costs of an ageing population.)

So the burning question is, how bad is the economic situation really?

It’s a good question, but one that begs others. For whom? And compared with what?

Unlike professional economists, normal people do not operate in a world of statistics – which are backward looking and error-prone – or complex modelling.

Their view of the economy is dictated largely by their own experience and that of those around them, which is why official figures on inflation or growth, say, often jar with the general public.

If you are one of the million young unemployed, or weighed down with an interest-only mortgage on a house going down in value, or your pension fund is going down the pan, then the economic situation will feel pretty grim.

Economic worry: Unlike professional economists, normal people do not operate in a world of statistics (posed by models)

But for people in work who have seen their mortgage costs fall, it’s not so bad – and for the corporate aristocracy whose pay packets are still increasing at a rate of 50pc, it’s marvellous.

Compared with the boom years of the 2000s, when house prices were rising and extreme shopping was de rigueur, today’s economy feels very downbeat. But anyone who endured the 1930s slump would still see the Britain of 2012 as a land of unimaginable plenty. Even compared with the 1980s, living standards are far better, thanks in part to technological advances such as mobile phones, the internet, and the Ipad.

Economics is, of course, not an objective science, but highly politicised. The work of economists themselves is coloured by their personal ideology, their moral beliefs and their training. Politicians then pick and choose from the statistics and reports in order to back up their own positions.

Making sense of all this is difficult.

Optimists run the risk of mockery. The spectre of former Chancellor Norman Lamont – whose claim in the downturn of 1991 to have seen the ‘green shoots of economic spring’ was met with widespread derision – looms large.

Yet there are some genuine chinks of light: non-financial firms are making their biggest profits since the banking crash three years ago; corporates are sitting on billions of pounds of cash that they will invest once their confidence recovers; UK government borrowing costs are at a record low; the construction and car-making sectors are showing signs of recovery.

There is plenty of fodder around for the Cassandras – the High Street is on its knees, the housing market is moribund with the average age of first-time buyers now 37, unemployment is rising, the banking system is on the brink of a new credit crunch and the Eurozone is going to hell in a handcart.

Chink of light: UK government borrowing costs are at a record low

The gloomsters, though, run the risk of creating self-fulfilling prophecies and an atmosphere of despair that in itself acts as a drag on the economy.

The reality is that the UK’s apparent
prosperity of the New Labour years was founded on utter delusion. We
can have a good future provided we ditch our dependence on illusory
profits conjured up through the misuse of debt, and provided we
concentrate on our world-class research, manufacturing and creative
industries.

Britain needs to address a new
reality and a new world order. A collapse in the Eurozone would have
horrible effects in the UK as it is a major trading partner, but we have
other relationships including with Commonwealth countries such as
India. It has economic troubles of its own, but in the long term
emerging nations like India and China are where we should look for
growth. The US is also a major export partner, and its economy is
showing signs of picking up.

Instead of distracting ourselves with the merits of economic optimism versus pessimism, we would be better served by a dose of realism.

Here’s what other readers have said. Why not add your thoughts,
or debate this issue live on our message boards.

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Are economists bullish or bearish is like asking do you think Labour or Conservative will win the next election: you can always find one of either and you can probably find several that opt for both. However, as any bookmaker will tell you, the trick is to watch where people put their money and the first week of a new year’s stock market is as close to “placing your bets” as any. On Friday evening, if the FTSE100 is up or down for the year, that’ll really give you a clue as to whether the country’s key economists are bullish or bearish.

– Pelham Smithers, London, England, 05/1/2012 23:20

Britain needs to address a new reality and a new world order………….scarry!

– topsy, topsyturveyland!, 05/1/2012 20:53

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