24,000 businesses closed during the recession in the 90s. So far in this one we have lost 27,000, which is 17,500 more than we lost in the 80s. We have definitely rediscovered boom and bust with a vengeance in the UK.
We also have Professor Goodhart of the London School of Economics giving dire warning that the lack of money supply in the UK, US and Europe may send us all back into recession. China, which is still expanding its money supply will also have to apply the brakes at some time so there will be no rescue from that quarter.
We also have the chief economist of the Organisation for Economic Co-operation and Development (OECD) saying that the whole of Europe will have to raise taxes and slash spending to pay off the massive debts racked up during the relatively short time we have actually been in recession.
Then on top of that the UK public sector believes it is everyone else’s fault and that they should be somehow insulated from the pain. Having of course benefitted from government largesse, loose spending controls, cheap money for all the workers to buy houses, food and clothes etc.
The signs are that we will be slipping into another recession in the coming months. There will be no money and what little there is will be taken by the government to keep as much of the public sector together as they can.
And to cap it all the OFT have thrown the towel in over the bank charges case and given the go ahead for the too big to fail banks to raid accounts and change terms and conditions as it suits them. We have re-written the rule books to reflect the real truth, that the banks and those with the real money rule the roost and the rest don’t matter.
These few years will not be reflected well in the history books in the years to come. A lot of today’s politicians will not like what will be written about them in the decades and centuries to come. But hey! They’ve got their expenses so do they care?
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