Wednesday, October 11, 2006
"Drifting to disaster – is the UK living beyond its means? This article argues that the UK is in danger of a sterling crisis and a prolonged recession. 7th July 2006 – by Angus Hanton (business economist)
Please send comments to: "angus@woodlands.co.uk" (please state if you don't want your comments to be quoted. If you agree with the thrust of this article and would like more people to read it the best way you can do that is to put a link to it from your website - if you have one that you control/influence).
For a long time the UK has been spending more than it earns. Our appetite for spending has created problems which have recently intensified, and which are now endangering our economic well-being. The UK has been importing very large volumes of manufactured goods in a spending boom, which has been financed by the sale of capital assets to foreign buyers and by consumer borrowing. This process is like selling the family silver - and much of the family estate - to pay for current consumption ... and then borrowing to allow further consumption. This seems to have gone almost unnoticed by both the British people and the political establishment, but can surely only lead to a slump in the short term and impoverishment in the long term."
... the whole western world is ...
... when you admit standard inflation as a built in parameter for the economy ....
... this is the standard result ...
... the roman emperors ran an empire with 10% of taxation ...
... excessive public system creates inflation ...
... "strategic" today is only health, energy, justice and defense ...
... the rest is the cow that generates standard inflation ...
let me have back the gold standard
:)
Please send comments to: "angus@woodlands.co.uk" (please state if you don't want your comments to be quoted. If you agree with the thrust of this article and would like more people to read it the best way you can do that is to put a link to it from your website - if you have one that you control/influence).
For a long time the UK has been spending more than it earns. Our appetite for spending has created problems which have recently intensified, and which are now endangering our economic well-being. The UK has been importing very large volumes of manufactured goods in a spending boom, which has been financed by the sale of capital assets to foreign buyers and by consumer borrowing. This process is like selling the family silver - and much of the family estate - to pay for current consumption ... and then borrowing to allow further consumption. This seems to have gone almost unnoticed by both the British people and the political establishment, but can surely only lead to a slump in the short term and impoverishment in the long term."
... the whole western world is ...
... when you admit standard inflation as a built in parameter for the economy ....
... this is the standard result ...
... the roman emperors ran an empire with 10% of taxation ...
... excessive public system creates inflation ...
... "strategic" today is only health, energy, justice and defense ...
... the rest is the cow that generates standard inflation ...
let me have back the gold standard
:)
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