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Monday
Aug032009

General confusion over who is in command of the economy

The UK economy seems to a runaway train picking up speed and racing towards the buffers according to several recent reports and surveys.

First the great and good took time off fiddling their expenses in Westminster while London burns to pronounce the Financial Services Authority is in fact a watchdog without a bite and largely failed to regulate the worst excesses of the banks in the lead up to recession. The Treasury Committee of MPs also said the recent Government White Paper on banking controls is little more than cosmetic and no one is sure who has ultimate responsibility for the economy.

The Bank of England, the FSA and the Government are all taking action, but no one appears to have the confidence to lead the way.

This is bad news for Gordon Brown, who is surely a dead man walking towards defeat in the next election, and Chancellor Alistair Darling, who are the Captain and First Mate of the SS United Kingdom.

The bank is due to meet this week to discuss interest rates and quantative easing.

This is a no-brainer – interest rates will stay as they are at 0.5% and despite spending £125 billion on printing cash to buy the Government’s own bonds, hands up anyone who has noticed how this has changed the economy.

Meanwhile Britain is becoming a wasteland decimated by debt. With families lives financially ruined by the prevarication of the men at the top.

Every 10 minutes a property is repossessed, while 3,300 workers a day are made redundant, according to data compiled by national charity Credit Action.

Some 142 properties were repossessed daily in the first three months of 2009.

The Council of Mortgage Lenders, estimates this will increase to about 178 a day throughout 2009.

Average household debt, excluding mortgages, now totals £9,240 and the average owed by every UK adult is £30,460, including mortgages, representing 133% of average earnings,

Sadly, Britain is a nation celebrating a slowdown in the rate of decline rather than success, where the CBI reports 51% of companies seeing orders fall in the last quarter is an improvement not a disaster.

 



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