"UK economic miracle a sham."

Discussion in 'Economics' started by hong_kong_fuey, Oct 22, 2007.

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  1. It's all looking ominous. Batten down the hatches, we're in for a rocky ride, especially when we also consider the rise of the price of oil towards the $100 mark and the coming winter, the sub-prime fiasco, and the possibility of war with Iran.

  2. A 'sham' is a little harsh, even for the Telegraph.

    Britain faces some economic issues, but so does all of Europe.

    The report fails to mention that home ownership is greater in the UK then mainland Europe, so although personal debt is higher, so are personal assets. These balance each other out to an extent (although the debt is a risk factor in a rising interest rate environment).

    A much bigger concern, in my opinion, is that North Sea Oil is starting to run out. This has been a major contributor to the UK economy since the late 70s.

    But I agree with them over the excessive bureaucracy and annoying rules and regulations that now dominate the business environment.


    Edited to add: If you think of oil in Sterling or Euro terms, it doesn't look quite so bad.
  3. Nehustan

    Nehustan On ROPs

    The firm has been trading for around 1000 years with only a brief interruption, I'd wager there's certainly more ballast below decks than is made public...baton down the hatches as they say....

    (It’s not like this hasn’t been seen coming for some time)
  4. True, but UK is significantly deeper in the guano than most of Europe. There was an interesting article in one of the papers a couple of months ago - I think it was the Guardian.

    It pointed out that Labour never anticipated the collapse of the Tory party when they were planning for power in the mid 90s. They only ever anticipated two terms in power.

    By now, they expected Michael Howard to be in No 10 and trying to deal with the economic fallout. 20+ million on benefits, uncontrolled immigration, rising inflation, a bloated public sector, collapsing public services, PFI mortgage payments kicking in etc, etc, etc - they never expected to have to deal with it themselves.

    The biggest single contributor is the City of London. In a couple of months we'll see the annual condemnation of City bonuses by left wing MPs. There's growing support by the government and the trade unions for a 'special' tax on these people. There's also growing pressure on Gordon to hammer City firms as he has done with the oil and airline industries.

    I reckon there's a good chance that City firms will up sticks and relocate abroad before the next election. Barclays is already threatening to do this. That'll increase the black hole in Gordon's budget by 60-100 billion quid!
  5. many times I have said just leave Labour in Charge long enough and they will shoot themselves in the foot.
    Tax and Spend is basic Labour mentality.
    Take from the folk who Earn and give to they who don't. It's all very socialist.
    Now Debt.
    Encourage folk who don't have, to spend and the man in the street feels great.
    But wait long enough and Labour will have screwed the economy again and gess who will have to cum and pull UK out of thePoo again.
  6. I've chatted on AllCallsigns.org to a few ex-servicemen who are starting new businesses and the single factor which seems to hold them up the most is all the jumping through hoops that must be done. A quick look on the government's own business startup site will show you just how much bullsh*t you need to wade through to avoid being jumped on.

    I hate to think what it's like in big business.
  7. Rosy pictures of the economy remind me of the master spin guru Squealer in Orwell's "Animal Farm."

    Production is rising, we are exporting more than ever before and we got the Chinese right where we want them.

    Or so we are told.

    Fecking liars. The whole bunch of them. Fecking liars.
  8. Because YOU know better :roll:
  9. Alas. You are right.

    I do know better.
  10. If You know betterthan to post such rubbish then why do it? :?:
  11. Why is it rubbish? Would you care to support that allegation? Perhaps with some statistics or a link or two?
  12. Ord_Sgt

    Ord_Sgt RIP

    If you're not going to add anything then shut up.

    Did anyone think the leopard was really going to change its spots? Tax, borrow and spend is labour policy. Always has been and always will be. Remember the clear up in the early 80's of their policies from the 70's? We're going to have more of the same starting 2010 when this lot get the boot. Prepare for the pain.
  13. Sven - I happen to believe we are in for a rough ride although the Markets yesterday were not as bad as some people predicted. However we cannot go on spending the way we currently are for no tangible results.

    The Treasury figures show a shortfall of 3% of GDP of Expenditure against National Income. Browns own fiscal rules say that borrowing should only be undertaken to invest and that the investment should be sustainable.

    IFS figures show that to achieve his aim then Brown (not Darling - he is a glove puppet) needs to reduce public spending AND increase taxes.

    Your thoughts please.
  14. No Government does anything that will have a positive payback outside the term of their parliament but obviously love to do things that give quick visible results even if the result is longer term misery. Gordon the Bottler is already the architect of his own destruction: pretending to be a "prudent" Chancellor but actually reverting to Old Labour Tax and Spend all dressd up in accounting and presentational tricks. If he were the CFO of any quoted company would be in jail by now.

    The Alistair Darling pre Budget was a disaster: forced into populist measures in anticipation of an election it is ill thought out, full of disguised tax grabs and a lot of spin.

    But even Alistair is not dumb enough to take on the City at a time when the pressure is on. Unions may scream for a "special" tax on high earners but that is just so stupid when even France and Germany are reducing their tax rates. Consider this:

    John Citiboy gets his £1m bo-narrse. Evil doer! Capitalist Pig! Not fair! Tax him till it hurts!

    But he will pay £400K tax and £10k National Insurance on that. His employer will have had to stump up £128K Employers National Insurance. Treasury is already £538K up.

    So next time screaming headlines about some obscene City bonus floats up, just remember that 53.8% goes into Government coffers
  15. Ord_Sgt

    Ord_Sgt RIP

    But only until such time as said cityboy fcuks off to New York or Frankfurt and takes his salary with him.