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UK economy growing at fastest rate in the developed world

Rainman05

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UK economy growing at fastest rate in the developed world - Telegraph

Britain’s economy is now growing at one of the fastest rates in the developed world.
Figures released today indicated that output across the services sector, which accounts for the majority of the economy, rose at the strongest pace for 16 years between July and September.
Separately, house prices were shown to be rising at 6.2 per cent, more than twice the rate of inflation, helped by the imminent launch of the Government’s Help to Buy cheap credit scheme and also the healing economy.
Experts said the startling pick-up in the services sector, which accounts for three-quarters of national output and includes caterers, banks, accountants and lawyers, suggested that GDP growth would be 1.2 per cent for the third quarter of 2013.
This would be enough to outstrip America, France and Germany and could be ahead of Brazil and India, until recently two of the fastest growing emerging economies. Britain’s economy last rose by as much as 1.2 per cent in a three month period in the autumn of 2007, when the credit crisis began.

LoL? Is David Cameron a second Thatcher? Taking all the **** up front ,making the unpopular decisions just so that later on the economy will boom?

Glad to see Britain is doing well. Will it be able to keep it up? And how will this impact its internal relationship with the scottish referendum coming right up?
it seems to me that this bit of good news may be just the ammo cameron needs to start tackling the separatist issue and also, just maybe, keep his seat and the tory majority through the next election. Though he will have to keep the good news coming for over a year because the next elections are in mid 2015.
 

NoC_T

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And the Eastern mirth rises ever the higher, as the Western concept of a sine wave continues to do the rounds. And here, there were no such portents prior to Black Tuesday.

Would that futures speculation were so predictable, eh chief? Aye. The beach house in the Azores might show up right purdy, come spring.
 

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UK economy growing at fastest rate in the developed world - Telegraph




LoL? Is David Cameron a second Thatcher? Taking all the **** up front ,making the unpopular decisions just so that later on the economy will boom?

Glad to see Britain is doing well. Will it be able to keep it up? And how will this impact its internal relationship with the scottish referendum coming right up?
it seems to me that this bit of good news may be just the ammo cameron needs to start tackling the separatist issue and also, just maybe, keep his seat and the tory majority through the next election. Though he will have to keep the good news coming for over a year because the next elections are in mid 2015.

no it cant be happening there is no way the UK is doing that good. Austerity was supposed to crush the economy

So their you have it left wing loons another failed theory and predictions going down the crapper. how many freaking times do you need to be wrong before you abandon your failed ideology and step into the realm of reality
 

NoC_T

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The worst thing is, Cameron's gonna insinuate this blip is a product of his personal economic genius.

Oh boy.
 

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UK economy growing at fastest rate in the developed world - Telegraph

LoL? Is David Cameron a second Thatcher? Taking all the **** up front ,making the unpopular decisions just so that later on the economy will boom?

Glad to see Britain is doing well. Will it be able to keep it up? And how will this impact its internal relationship with the scottish referendum coming right up?
it seems to me that this bit of good news may be just the ammo cameron needs to start tackling the separatist issue and also, just maybe, keep his seat and the tory majority through the next election. Though he will have to keep the good news coming for over a year because the next elections are in mid 2015.

Well... is it now?

Separately, house prices were shown to be rising at 6.2 per cent, more than twice the rate of inflation, helped by the imminent launch of the Government’s Help to Buy cheap credit scheme and also the healing economy.

House prices rising is NOT good. It is NOT healing the economy, but dragging it down, especially if the prices are going up at a rate higher than inflation and wages. You still cant get a 100% loan, let alone a 90% loan, so you need a massive down payment to get a home mortgage and having the prices go up.. bad. More and more people cant afford owning a home, and that is a massive problem for any economy.

Plus housing prices have been rising in certain areas of London during the whole crisis.. so it is hardly a great sign.

Experts said the startling pick-up in the services sector, which accounts for three-quarters of national output and includes caterers, banks, accountants and lawyers, suggested that GDP growth would be 1.2 per cent for the third quarter of 2013.

The banking industry is a HUGE portion of the UK services economy, and just because the banks are growing hands over fist, does not mean that the over all economy is doing good. The problem with the UK economy is that it is doing a Spain.. being totally reliant on a dominating industry for all of its economic growth.. in this case the City of London and the banks. It looks more and more like Cameron is going down the road of Aznar in Spain.. but hey the UK can easily handle it right?

And the fact is that most of the austerity measures have barely kicked in, because Cameron has been pushing them constantly and worst of all... dumping them because he found out his hair brained ideas were everything from illegal to utterly stupid.... like throwing 50k+ families on the street because they had one bed room too many.

This stinks of smoke and mirrors by the Cameron government and the statisticians involved.
 

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no it cant be happening there is no way the UK is doing that good. Austerity was supposed to crush the economy

There has been no austerity as of yet in the UK. Their deficit is the highest in the industrialized world under Cameron and they are borrowing in record numbers.
 

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UK economy growing at fastest rate in the developed world - Telegraph




LoL? Is David Cameron a second Thatcher? Taking all the **** up front ,making the unpopular decisions just so that later on the economy will boom?

Glad to see Britain is doing well. Will it be able to keep it up? And how will this impact its internal relationship with the scottish referendum coming right up?
it seems to me that this bit of good news may be just the ammo cameron needs to start tackling the separatist issue and also, just maybe, keep his seat and the tory majority through the next election. Though he will have to keep the good news coming for over a year because the next elections are in mid 2015.

I think the "austerity failed" argument just took a bullet to the head.
 

Rainman05

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I think the "austerity failed" argument just took a bullet to the head.

To be fair, as PeteEU said, the Cameron govt is still running a massive deficit. Now some of that deficit is inherited from Labor but Camerons' govt also borrowed a lot of money to help with the financial crisis... So while he has done cuts here and there on the budget, the budget is still waaay too large and normal revenues can't cover it. They're borrowing like 150bil euros a year.

Well... is it now?

House price rising is a sign of a recovering economy. What crashed first during the financial crisis? The house prices dropped like dead.
energy, house and wage increase are all signs of an economy that advances.


Banks are big deal in the UK because London is the financial capital of the world. Or so it is nicknamed. so of course it will play a large part.

You won't see me arguing for the bedroom tax, I even said it was the stupidest thing I've ever heard.


It may very well be just a flickering gesture... a trick... but the idea is that it is presented as if it's not. And that matters, especially when trying to maintain a credit rating. Nearly 35% of all the debt the UK takes on is from foreign lenders. If those foreign lenders start to shiver in their boots, an increase in the interest by 0.2% would be worth millions more given to pay off the interest on the overall debt every year.
 

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To be fair, as PeteEU said, the Cameron govt is still running a massive deficit. Now some of that deficit is inherited from Labor but Camerons' govt also borrowed a lot of money to help with the financial crisis... So while he has done cuts here and there on the budget, the budget is still waaay too large and normal revenues can't cover it. They're borrowing like 150bil euros a year.

Pounds.. not Euros :) But yea.

House price rising is a sign of a recovering economy. What crashed first during the financial crisis? The house prices dropped like dead.
energy, house and wage increase are all signs of an economy that advances.

Yes and no. House price rising is only viable if wages follow suit. If they do not, then you slowly push more and more people out of the market. And what caused the financial crisis was idiots who did not think that housing prices could fall and hence they built up a ponzi scheme that as a key factor had the false fact that housing prices always go up.

The issue here is that wages have at best been stagnant, but in reality they have fallen in the UK and at the same time there has been relatively high inflation (compared to Europe and the US), which means that the amount of money in peoples pockets have gone down. Now the only place this has not happened is among the wealthy, and I would wager that a large part of the housing price rise is among the high end homes.

House prices going up at this point in time is not a good sign.. it is in fact a very bad sign.

And energy prices rising is a horrible sign, because it is not based on demand but on speculation.

But it all comes back to the following simple thing... wages are not rising, hence people have less to spend with everything going up.. that is BAD.

Banks are big deal in the UK because London is the financial capital of the world. Or so it is nicknamed. so of course it will play a large part.

And it is false growth. That a bank has big growth has very little impact on the UK economy, because they are still demanding 25% down payment for mortgages and not loaning money out. On top of that they are laying off banking employees as well..

It may very well be just a flickering gesture... a trick... but the idea is that it is presented as if it's not. And that matters, especially when trying to maintain a credit rating. Nearly 35% of all the debt the UK takes on is from foreign lenders. If those foreign lenders start to shiver in their boots, an increase in the interest by 0.2% would be worth millions more given to pay off the interest on the overall debt every year.

And their bond interest rate has skyrocketed the last many months. Even the French pay less than the British.... and if the Spanish downward trend continues then the Spanish and British will soon meet. Cameron and Osbourn cant use the "low bond rate" argument when their bond rate almost hit 3% a few weeks ago and has now at 2.74%. Of all the big economies in Europe, only Italy and Spain have higher bond rates, and they are hovering around 4.3ish at the moment..
 

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To be fair, as PeteEU said, the Cameron govt is still running a massive deficit. Now some of that deficit is inherited from Labor but Camerons' govt also borrowed a lot of money to help with the financial crisis... So while he has done cuts here and there on the budget, the budget is still waaay too large and normal revenues can't cover it. They're borrowing like 150bil euros a year.



House price rising is a sign of a recovering economy. What crashed first during the financial crisis? The house prices dropped like dead.
energy, house and wage increase are all signs of an economy that advances.


Banks are big deal in the UK because London is the financial capital of the world. Or so it is nicknamed. so of course it will play a large part.

You won't see me arguing for the bedroom tax, I even said it was the stupidest thing I've ever heard.


It may very well be just a flickering gesture... a trick... but the idea is that it is presented as if it's not. And that matters, especially when trying to maintain a credit rating. Nearly 35% of all the debt the UK takes on is from foreign lenders. If those foreign lenders start to shiver in their boots, an increase in the interest by 0.2% would be worth millions more given to pay off the interest on the overall debt every year.

If they are still running a massive deficit, then why are people rallying in the streets over this "horrible" cuts? Why were people on this very forum holding up the UK as a shining example of a "bankrupt economic philosophy" ?
It seems to me austerity did exactly what it was supposed to do in this case. It seems that the cuts did exactly as they were supposed to do. The economy was slow at first as people adjusted and the economy restructures... then came roaring back.

Is it any wonder the Germany, a country that has among the lowest deficits AND debt levels in the developed world, was never really affected by the global recession the way many other countries were?
 

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Pounds.. not Euros :) But yea..[...]

Whether wages follow suite to cope with the rise of the housing costs is a matter of workplace and the general economy. The fact that house prices rise means that there is demand for them which means that the population, or part of it, can sustain paying such sums for houses.

As for the unemployment rate, it's been dropping down actually for the past weeks. It's now at 7.5% and has been decreasing all through the past months. Now ofc, the downside is that a lot of those jobs are part-time jobs but who knows what the future holds. So yes, wages overall are not increasing... but you can't rely on the govt to do that. The market needs to sort that thing out and provide high paying jobs. I would like to point out that unemployment for people who have learned skills in the STEM field + programming is very,very low and it is this category of people that haven't been laid off or in financial problems. This is a key advantage in the UK than say... Spain. In Spain, people with college degrees in the aforementioned fields, or skills in that regard, can't find work easily in those fields but have to move to other countries.

Energy consumption going up is a good thing(that's what I meant)... energy costs, I don't know what the situation in the UK is regarding that. But energy consumption increase is a sign of a recovering/improving economy... or traditionally has been.

Bank growth may be a false growth but again, if they're growing it means that they may not be needing a bailout soon. so it's good news overall.

As to bonds: True, that's why I am saying that this bit of good news, and if it continues, will serve to lower bonds interest.

If they ?[...]

Well.. austerity measures mean that you reduce the budget spending. But if the budget spending is too big, you will need to do a lot of cutting before you manage to get in a position where you're not borrowing anymore. Cameron is doing that, slowly... he talks about cuts but doesn't really live up to the expectations.
And people are rallying in the streets against stupid cuts. Like cuts to education and educational programs and state sponsorships. You can't cut indiscriminately, you need to cut smart, and popular feedback is important in this regard.

Another thing. the reason why the UK is held up as a bankrupt economic philosophy as you so kindly put is because of a phenomenon named: the UK debt bomb. The UK's state debt, so the govt, may be less than 100% of it's GDP in debt, but the unfunded liabilities + the debt that other institutions (like banks that usually ask for bailouts when they're in the crapper) is about 400% of the UK's GDP.

Germany is very heavily in debt too. About 80% of it's GDP. But the deficit of the german budget is only of 0.2%... So germany funds 99.8% of it's budget from revenues. So it needs to borrow very little money to pay for all it's programs and adventures. however, germany is the de facto biggest contributor to eurozone bailouts so if another bailout needs to happen (look at greece, portugal, ireland), especially one that is over 100bil... it may just be the straw that breaks the camels' back for some countries (France, UK, Italy). Or at least brings it dead close.
 

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Whether wages follow suite to cope with the rise of the housing costs is a matter of workplace and the general economy. The fact that house prices rise means that there is demand for them which means that the population, or part of it, can sustain paying such sums for houses.

As for the unemployment rate, it's been dropping down actually for the past weeks. It's now at 7.5% and has been decreasing all through the past months. Now ofc, the downside is that a lot of those jobs are part-time jobs but who knows what the future holds. So yes, wages overall are not increasing... but you can't rely on the govt to do that. The market needs to sort that thing out and provide high paying jobs. I would like to point out that unemployment for people who have learned skills in the STEM field + programming is very,very low and it is this category of people that haven't been laid off or in financial problems. This is a key advantage in the UK than say... Spain. In Spain, people with college degrees in the aforementioned fields, or skills in that regard, can't find work easily in those fields but have to move to other countries.

Energy consumption going up is a good thing(that's what I meant)... energy costs, I don't know what the situation in the UK is regarding that. But energy consumption increase is a sign of a recovering/improving economy... or traditionally has been.

Bank growth may be a false growth but again, if they're growing it means that they may not be needing a bailout soon. so it's good news overall.

As to bonds: True, that's why I am saying that this bit of good news, and if it continues, will serve to lower bonds interest.



Well.. austerity measures mean that you reduce the budget spending. But if the budget spending is too big, you will need to do a lot of cutting before you manage to get in a position where you're not borrowing anymore. Cameron is doing that, slowly... he talks about cuts but doesn't really live up to the expectations.
And people are rallying in the streets against stupid cuts. Like cuts to education and educational programs and state sponsorships. You can't cut indiscriminately, you need to cut smart, and popular feedback is important in this regard.

Another thing. the reason why the UK is held up as a bankrupt economic philosophy as you so kindly put is because of a phenomenon named: the UK debt bomb. The UK's state debt, so the govt, may be less than 100% of it's GDP in debt, but the unfunded liabilities + the debt that other institutions (like banks that usually ask for bailouts when they're in the crapper) is about 400% of the UK's GDP.

Germany is very heavily in debt too. About 80% of it's GDP. But the deficit of the german budget is only of 0.2%... So germany funds 99.8% of it's budget from revenues. So it needs to borrow very little money to pay for all it's programs and adventures. however, germany is the de facto biggest contributor to eurozone bailouts so if another bailout needs to happen (look at greece, portugal, ireland), especially one that is over 100bil... it may just be the straw that breaks the camels' back for some countries (France, UK, Italy). Or at least brings it dead close.

Well I agree... debt is a bankrupt philosphy, but that wasn't the one I was talking about. Some liberals seem to think that deficits don't matter and reducing the deficit is the worst possible thing ever. Its hilarious how the UK is still on a death.... I mean debt spiral after the cuts, yet liberals still think that the UK would be better off spending more instead of less.


And yes, you can cut indiscriminately if there isn't enough money to pay for the popular programs in the first place.

Germany's debt ratio is still lower then countries such as France, Greece, the UK, the US, etc. etc. Oh, and another thing, why do liberals seem to think that Germany should be perfectly willing to let Greece continue its reckless spending without demanding any deficit cuts?
 

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Whether wages follow suite to cope with the rise of the housing costs is a matter of workplace and the general economy. The fact that house prices rise means that there is demand for them which means that the population, or part of it, can sustain paying such sums for houses.

Considering that there is lack of housing in the UK then duh! Of course there is demand, but the price rises has more to do with lack of supply than anything else. Plus there has been plenty of demand for the whole crisis period on the multi million pound homes in London..

As for the unemployment rate, it's been dropping down actually for the past weeks. It's now at 7.5% and has been decreasing all through the past months. Now ofc, the downside is that a lot of those jobs are part-time jobs but who knows what the future holds. So yes, wages overall are not increasing... but you can't rely on the govt to do that. The market needs to sort that thing out and provide high paying jobs. I would like to point out that unemployment for people who have learned skills in the STEM field + programming is very,very low and it is this category of people that haven't been laid off or in financial problems. This is a key advantage in the UK than say... Spain. In Spain, people with college degrees in the aforementioned fields, or skills in that regard, can't find work easily in those fields but have to move to other countries.

Much of the job growth has been among part time no contract jobs.. basically the lowest type of jobs out there. Hardly something to write home about.

And yes in Spain the unemployment is bad (although not as bad as the numbers state), but what happened in Spain is what the UK has to prevent. Spain was totally reliant on the building sector.. 30+% of the economy was connected to the sector when the credit crunch hit. This is the problem the UK has and why the UK constantly is against any reforms to reign in the banking sector in Europe. That is also why they went all out to save their banks, and the banking industry in general and has protected it ever since. The UK is so heavily dependent on the industry that loosing even a little of it would be catastrophic.

Energy consumption going up is a good thing(that's what I meant)... energy costs, I don't know what the situation in the UK is regarding that. But energy consumption increase is a sign of a recovering/improving economy... or traditionally has been.

Ahh yea well there is a difference between energy consumption and costs heh. Consumption goes up and down depending on the weather after all. But on top of that energy costs in the UK have gone up and up, and it is so bad that people are actually dying due to lack of money to pay for heat.

Bank growth may be a false growth but again, if they're growing it means that they may not be needing a bailout soon. so it's good news overall.

Actually it means that they can be privatised again :) since they were already bailed out. Okay far from all of them were privatised, but the point is that the banks have tons of cash laying around that they are not using.

As to bonds: True, that's why I am saying that this bit of good news, and if it continues, will serve to lower bonds interest.

There has been "good news" for months and that has only pressed the bond interest rate up.

Well.. austerity measures mean that you reduce the budget spending. But if the budget spending is too big, you will need to do a lot of cutting before you manage to get in a position where you're not borrowing anymore. Cameron is doing that, slowly... he talks about cuts but doesn't really live up to the expectations.
And people are rallying in the streets against stupid cuts. Like cuts to education and educational programs and state sponsorships. You can't cut indiscriminately, you need to cut smart, and popular feedback is important in this regard.

The problem is that with austerity comes less tax income, which means the deficit at best does not go down as much as they wanted and at worst actually increases. You need a balance in the economy and going all out to cut government spending will take that balance and throw it out the window.

So what Cameron wanted to do and has done, has been half hearted and stupid in many cases. For example, for years there has been people complaining about benefit fraud and the Tories have made it one of their main targets of saving a few bucks. Problem is that they are more words than actual action. On Sky News there was a story about a guy who committed benefit fraud in the UK for 130+k pounds. He fled to near me in Spain (can actually see the area he lives in), and has been living here for many years. He owns homes here, most likely paid for by the fraud. Now you can say, okay the UK government might not know where he is.. well. Not only has the British expatiate community many times given him up to Crimestoppers and the UK Work and Pensions Ministry, but the freaking UK government has been sending him his pension to Spain even though he is a wanted man!!. And he is FAR from the only case of utter stupidity in the general UK government... /wave aircraft carriers with no planes. Now you can blame Labour.. and yes they deserve it, but Cameron has had 3+ years to just remotely start fixing a bloated broken bureaucracy, but instead he adds more layers of crap with his idiotic bedroom tax.

Another thing. the reason why the UK is held up as a bankrupt economic philosophy as you so kindly put is because of a phenomenon named: the UK debt bomb. The UK's state debt, so the govt, may be less than 100% of it's GDP in debt, but the unfunded liabilities + the debt that other institutions (like banks that usually ask for bailouts when they're in the crapper) is about 400% of the UK's GDP.

Yea well.. but much of that debt is mortgage debt as it is in most countries so the 400% is a bit miss-leading.

Germany is very heavily in debt too. About 80% of it's GDP. But the deficit of the german budget is only of 0.2%... So germany funds 99.8% of it's budget from revenues. So it needs to borrow very little money to pay for all it's programs and adventures. however, germany is the de facto biggest contributor to eurozone bailouts so if another bailout needs to happen (look at greece, portugal, ireland), especially one that is over 100bil... it may just be the straw that breaks the camels' back for some countries (France, UK, Italy). Or at least brings it dead close.

Actually the Germans are paying down on their debt, since their budget deficit is lower than over all inflation. And 80% is not heavily in debt... a right wing myth. Hell even 100% is not much. The average household is several 100% in debt if they own a house, but you dont hear the markets scream about that do you? At least the government has an income, where as the average household can easily have 0 income.

People should stop focusing on the stupid debt % because it is nothing but utter bull**** and a distraction away from the actual problems.
 

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Well I agree... debt is a bankrupt philosphy, but that wasn't the one I was talking about.

You cant run anything without debt.. even China has over 30% debt to GDP and they own the freaking planet. Debt has always been a part of business and government.

Some liberals seem to think that deficits don't matter and reducing the deficit is the worst possible thing ever.

Wrong. "Liberals" for the most part accept that reducing a deficit is key, but where the difference is, that this deficit reduction should never happen when the private sector cant take up the slack. And THAT is the worst possible thing to do. Cut government spending and private spending at the same time.. that was what lead to the great depression.

Its hilarious how the UK is still on a death.... I mean debt spiral after the cuts, yet liberals still think that the UK would be better off spending more instead of less.

The problem is there has been very little cuts. Cameron tells a good tale, but the fact is that the deficit has been cut very little and the cuts have not even started in many areas because the policies have often been pulled because of a massive backlash from the population.

And yes, you can cut indiscriminately if there isn't enough money to pay for the popular programs in the first place.

Fine, then cut military spending first. The UK waste billions on nuclear weapons each year. That could be first.. but nope!

Germany's debt ratio is still lower then countries such as France, Greece, the UK, the US, etc. etc. Oh, and another thing, why do liberals seem to think that Germany should be perfectly willing to let Greece continue its reckless spending without demanding any deficit cuts?

German debt ratio has been falling the last few years but was up around 88%. And it is falling because the budget, income and outlays are in better balance than anywhere else. Germany has not had massive cuts, but has raised some taxes. And with the growth in the economy, that means that there is almost no deficit. But saying that Germany also had a much better basis to start from than most countries on the planet.
 

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Germany's debt ratio is still lower then countries such as France, Greece, the UK, the US, etc. etc. Oh, and another thing, why do liberals seem to think that Germany should be perfectly willing to let Greece continue its reckless spending without demanding any deficit cuts?

Idk who those liberals who claim such a thing are... but Greece has been pressured from all EU nations and the IMF to cut spending. And it has cut spending quite a lot. It's one of the campaign slogans of the communists who are very popular in greece: that they won't cut spending.
 

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206px-Flag_of_Norway.svg.png


https://www.google.com/search?q=nor...IDgBw&ved=0CKsBELcfMA8&biw=1366&bih=622&dpr=1

Of course that's an annual change, this source is talking about a 3 month change.

Figures released today indicated that output across the services sector, which accounts for the majority of the economy, rose at the strongest pace for 16 years between July and September.

Wow 3 months, from 1JULY to 30SEP. Not a very large range of data, I can't really say that 90 days of economic activity is indicative of the entire economy.
 

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Idk who those liberals who claim such a thing are... but Greece has been pressured from all EU nations and the IMF to cut spending. And it has cut spending quite a lot. It's one of the campaign slogans of the communists who are very popular in greece: that they won't cut spending.

Good for them. And I'll laugh as those communists watch as the country implodes when Germany stops bailing them out. They can't spend if no one will lend.
 

ReformCollege

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You cant run anything without debt.. even China has over 30% debt to GDP and they own the freaking planet. Debt has always been a part of business and government.



Wrong. "Liberals" for the most part accept that reducing a deficit is key, but where the difference is, that this deficit reduction should never happen when the private sector cant take up the slack. And THAT is the worst possible thing to do. Cut government spending and private spending at the same time.. that was what lead to the great depression.



The problem is there has been very little cuts. Cameron tells a good tale, but the fact is that the deficit has been cut very little and the cuts have not even started in many areas because the policies have often been pulled because of a massive backlash from the population.



Fine, then cut military spending first. The UK waste billions on nuclear weapons each year. That could be first.. but nope!



German debt ratio has been falling the last few years but was up around 88%. And it is falling because the budget, income and outlays are in better balance than anywhere else. Germany has not had massive cuts, but has raised some taxes. And with the growth in the economy, that means that there is almost no deficit. But saying that Germany also had a much better basis to start from than most countries on the planet.

Tbh, you make good points and I agree with most of them. Perhaps I was wrong to assume that people saying "look at the failure of austerity!" meant there was actually austerity.
 

Andalublue

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Well... is it now?



House prices rising is NOT good. It is NOT healing the economy, but dragging it down, especially if the prices are going up at a rate higher than inflation and wages. You still cant get a 100% loan, let alone a 90% loan, so you need a massive down payment to get a home mortgage and having the prices go up.. bad. More and more people cant afford owning a home, and that is a massive problem for any economy.

Plus housing prices have been rising in certain areas of London during the whole crisis.. so it is hardly a great sign.



The banking industry is a HUGE portion of the UK services economy, and just because the banks are growing hands over fist, does not mean that the over all economy is doing good. The problem with the UK economy is that it is doing a Spain.. being totally reliant on a dominating industry for all of its economic growth.. in this case the City of London and the banks. It looks more and more like Cameron is going down the road of Aznar in Spain.. but hey the UK can easily handle it right?

And the fact is that most of the austerity measures have barely kicked in, because Cameron has been pushing them constantly and worst of all... dumping them because he found out his hair brained ideas were everything from illegal to utterly stupid.... like throwing 50k+ families on the street because they had one bed room too many.

This stinks of smoke and mirrors by the Cameron government and the statisticians involved.

So, we learn that the cycle of capitalist boom and bust economics starts to turn around... again! And we are meant to hail this as some kind of success? A new property booms threatens, driven by the banking sector, as if enough people hadn't already been priced out of home ownership. The parties in power, Tories and Libs, will seize on this kind of story and pretend that they had something to do with it, and that it's an unreserved 'good thing', while the spiralling cost of basic goods and services starts to spiral too. Power companies are already signalling price hikes 4-5x the increase in wages, so the rich start to slaver at the idea that they'll be getting richer as the poor become poorer, and everyone waits for this next boom to turn into the next bust.

Great news indeed! :roll:
 

gunner

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So, we learn that the cycle of capitalist boom and bust economics starts to turn around... again! And we are meant to hail this as some kind of success? A new property booms threatens, driven by the banking sector, as if enough people hadn't already been priced out of home ownership. The parties in power, Tories and Libs, will seize on this kind of story and pretend that they had something to do with it, and that it's an unreserved 'good thing', while the spiralling cost of basic goods and services starts to spiral too. Power companies are already signalling price hikes 4-5x the increase in wages, so the rich start to slaver at the idea that they'll be getting richer as the poor become poorer, and everyone waits for this next boom to turn into the next bust.

Great news indeed! :roll:

In addition we've started to get 'credit card' applications coming through the door, at about one a week. A sure sign the financial sector are flexing their muscles, again!

Paul
 

Andalublue

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In addition we've started to get 'credit card' applications coming through the door, at about one a week. A sure sign the financial sector are flexing their muscles, again!

Paul

I hope they are going straight in the bin. Fool me once, shame on you...
 

PeteEU

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So, we learn that the cycle of capitalist boom and bust economics starts to turn around... again! And we are meant to hail this as some kind of success? A new property booms threatens, driven by the banking sector, as if enough people hadn't already been priced out of home ownership. The parties in power, Tories and Libs, will seize on this kind of story and pretend that they had something to do with it, and that it's an unreserved 'good thing', while the spiralling cost of basic goods and services starts to spiral too. Power companies are already signalling price hikes 4-5x the increase in wages, so the rich start to slaver at the idea that they'll be getting richer as the poor become poorer, and everyone waits for this next boom to turn into the next bust.

Great news indeed! :roll:

Actually just today I saw analysts on CNBC and Bloomberg stating exactly what I stated... that the "good numbers" are not actually good. One analyst clearly stated that in her opinion based on the background numbers, that the 3rd quarter GDP figures will be considerably less than expected. We shall see.
 
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