Economy: Double dip recession looms for UK!

Posted on: 11 August 2010 by Mark O'haire

House prices are dropping, inflation is rising, growth is slowing, China is booming and the US is slowing down. So much for the recovery and the health of our economic outlook!

As regulars to this blog will know I have been cautioning that our prospects are far from secure. The truth is the balance of the established economies are still in a mess and the only place that is prospering are the emerging Far East markets. The simple reason that that region is flourishing is that it is home to a millions of very hard working people, each determined to reap the rewards that have been monopolised by the West for the past 200 years.

In the West, we will get the crumbs off the table but this is going to take time to work through to our pay packets. In the meantime, we have to take the pain as public sector job losses work their way through to our high streets and increase the pressure on our economic infrastructure.

The next four or five years are going to be very uncomfortable and we are unlikely to ever go back to the halcyon days we lived through at the turn of the Millennium! Life in the UK is going to be much tougher especially for our children and grandchildren. For us older citizens, my advice remains the same: keep your cash in the bank and don’t spend unless you have to; keep working if you have a job and try to get one if you don’t (although there’s little chance of that, I must admit!); delay your retirement and keep active; eat well and eat healthy. Don’t worry about property prices – they may go down but, as sure as the sun will rise tomorrow, they will go back up again. Remember the UK is massively short of houses so demand will ultimately push prices up.

Obama continues BP vendetta!

Recent news from the Gulf of Mexico about the oil gusher crisis is that 10% has been pumped off the sea’s surface and the rest is ‘breaking up naturally’. Today’s news is that BP is going to be allowed to resume drilling on the ocean bed. President Obama is a strong leader and the bill for the damage will be picked up by BP. Well there’s an outcome except for three things: Tony Haywood CEO of BP has had to fall on his sword; BP shareholders are going to have to pick up the bill for years to come and the UK is a bad word the USA. From here on in the lawyers in the US will have years of work suing BP for everything anyone can think of claiming for as a consequence of the spill!

'Bareback coalition' still on course? Yes!

With all the economic gloom how is the coalition doing? Well in my opinion pretty well. They are tackling the wanton waste of resources in the Civil Service; they are handling as best they can the impending pension crisis; they are restructuring the benefits system and tacking the cheats; they are getting us out of Afghanistan (although not as fast as I would like) and have restored international confidence in our currency!

A very productive report for four months in office! Now the coalition chiefs must be brave and resolute. As all these changes take effect they will face a hostile electorate and press. This will be the time for determination and solidarity. Anyone can be the top dog when things are going well but real leadership shows when to going gets tough.

Coalition polices will hit us all but it must be done. We had 13 years of New Labour profligacy and the bill has just arrived. The steps we take over the next five years will help re-establish our society and get us set to be a strong economy again; creating the jobs we so desperately need for our young generation. Let’s stand behind these guys for they will surely need our support.

Sarah Ferguson – Duchess of York bankruptcy threat!

So the Duchess of York is on the brink of bankruptcy – poor thing. Apparently she owes £5million (£2million personally and £3million via business enterprises!). Do I feel sorry for her? Not one bloody bit.

I have more sympathy for the people and companies who trusted her and her ‘Royal connection’ and gave her the credit she has squandered. They are the people, along with their staff, who are worthy of support.

Should the Queen bail Fergie out? Morally, yes, as it is the Royal connection that enabled her to get the credit in the first place. Without this no one in their right mind would have given her credit. In practice the Queen should stay out of it and  let her go bust – at least it will stop her suckering more people out of money!

In the good old days the aristocracy would have discreetly sent her to a convent or a lunatic asylum - shame those days have gone! 

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