Nearly 12 years of incompetence of this government’s work and the cracks show in the economy of the United Kingdom, but we should lay the blame where it started: Margaret Thatcher! She began the destruction of the manufacturing base of the United Kingdom, deregulation of the financial system, backed by the oil economy of the North Sea and wanted to turn London into the financial capital of the world.
Well, it worked for a while and subsequent governments have been happy to go with it, but you can not keep more money out of nothing and the bubble had burst sometime. Therefore a number of European economies are far ahead of the United Kingdom because they still make products to sell. The United Kingdom has surpassed the previous “South Sea Bubble” is now the “North Sea Bubble” and it broke! Welcome to reality.
Recession ‘is even worse than feared’: Chancellor predicts steepest slump ever
By Sam Fleming Last updated at 11:54 AM on 27th November 2009
The recession is proving even deeper than feared, Alistair Darling will admit in next month’s Pre-Budget report.
The Chancellor will forecast the steepest annual slump since modern records began.
But he is likely to put a brave face on the outlook by declaring that Britain has finally returned to growth in the fourth quarter of the year.
Last night Treasury sources indicated that Mr Darling will sharply downgrade his economic predictions in the December 9 statement, forecasting a slump of 4.75 per cent for 2009.
That would rival the worst year of the Great Depression of the 1930s, highlighting the terrible toll the banking crisis has taken.
In the Budget the Chancellor forecast a 3.5 per cent contraction for this year.
The difference will wreak havoc with the public finances, which already show a Government hugely in debt and borrowing at record levels.
The return to growth should allow the economy to record further modest growth of about 1.25 per cent in 2010, broadly in line with the Treasury’s March forecasts.
But it is still well behind rivals such as Germany, France and Japan, which have already emerged from recession.
Yesterday Mr Darling gave a strong hint about the economic outlook, pointing out that independent analysts are predicting a 4.7 per cent fall in British gross domestic product this year.
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