Wednesday, 12 August 2009
Recession Worse Than Expected
I posted last Thursady about the stream of lies and non-beliefs that seem to pour forth from government about "The reccession".
Basically we have no clue really.
The bending the twisting of facts actually makes me think we are really in a worse predicament than we thought.
I feel if the actual true fact were out there then yes...........the summer of riots etc could actually happen.
The peasant revolt could actually happen again so to speak.
I also know for a fact having seen Mervin Kings take on things this am that
1. He is at major odds with the government, Mandleson, Brown and Darling over fiscal policy
2. He is no Labour voter.
From this am and I quote:-The recession has hit the economy harder than previously thought but the prospects for economic recovery were "somewhat stronger", the Bank of England has said.
The Bank said it expects the economy to shrink by around 5.5% at the lowest point this year before beginning its recovery.
But it had seen encouraging signs that its efforts to pump more money into the financial system were taking effect.
Bank governor Mervyn King said: "It is likely that output stabilised in the middle of this year.
"Business surveys and other short-run indicators suggest that growth is more likely than not to resume over the next few quarters."
In its quarterly inflation report, the Bank forecast that the inflation benchmark used by rate-setters would stay well below its 2% target for much of the coming two years.
Mr King said it was more likely than not that he will need to write to Chancellor Alistair Darling later this year to explain why inflation has fallen more than one percentage point below the target.
The Bank said that, while the economy had shrunk more than expected at the beginning of the year, the pace of contraction had slowed.
And stronger results from business surveys "suggested that the trough in output was near".
Personally I am a damn site more inclined to listen to Mervin King than No11.
Trough in output was near- So we have not got to the worst bit yet!
The economy had shrunk more than expected at the start of the year, the pace of contraction had slowed - but not stopped, so the budget prediction of a 3.5% growth was cobblers (but we knew that)!
Inflation about to go negative - which is just as bad as hyper inflation.
Indicators suggest that growth is more likely than not to resume over the next few quarters - so when may we actually see it START and I am only asking for a start here to grow!
Unemployment went another 220K the wrong way.
Government debt totally out of control and the worst in our history.
Mortgages although saying more are being granted are becoming a point of a fast buck to lenders desperate to recoup money.
We are many years from seeing the end I am afraid.