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.
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.
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.
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.
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.
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.
Well... is it now?
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.
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.
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.
Pounds.. not EurosBut yea..[...]
If they ?[...]
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.
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?
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?
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.
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.
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.
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:
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
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:
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