Tag Archives: Ireland


George Osborne has declared that the economic figures released today regarding the UK economy’s growth are a good sign and shows the economy is “stable”.

The Office for National Statistics show that the UK economy grew by 0.2%.  The Office of Budgetary Responsibility (OBR) will have to downgrade it’s estimate for growth yet again.  From an expected growth of 2.7% down to 1.7% so far and is likely to fall to 1.2%.

The Osborne line continues, and as ever we are supposed to believe that these figures are “good news”.  We have to now start asking ourselves what exactly the difference is between “stable” and “stagnant”.

The UK economy now has virtually not grown at all for 9 months – this is certainly “stable”!  But in an economic model that means we HAVE to ensure growth in the economy to maintain and increase wealth, and of course to reduce the deficit, the news that the economy has not grown for 9 months is fairly devastating.

We have also been treated to the economic myths associated with such bad news.  In a country where we can have the “wrong” snow or leaves on the line – we are also the only economy in Europe that suffers from bad weather in winter; bank holidays; warm weather, wet weather; Easter – oh and Royal Weddings.  Apparently all these “one off events” have at some time in the past 9 months explained the dearth of an economic recovery.

The Truth however is far more dyer than anyone can admit.  It is not that these figures are bad for the economy, but what the trend tells us.  We had a small surge in growth taking back 1.8% of the 4.6% loss in GDP, and now the economy is not growing at all, and has not done so for 9 months.  This is no longer a “blip” but a trend.

What is worse is that the parts of the economic figures that were looking good are now looking as though they are following the trend.  Manufacturing is now shrinking again.  This is very bad news at a time when we are supposed to be “re-balancing” the economy, and having an export led recovery.  The truth however, is that manufacturing got an initial boost from a weaker pound, but this advantage only lasts for a relatively short time and then the advantage is lost.

Couple this with hard pressed economies in Europe, Ireland and the US and you have our main export markets in turmoil, recession or austerity – ie) consumers not overly willing to spend.

More bad news is that our main growth appears to yet again be coming from the financial sector.  This is obviously not bad  per say, but is bad if we are to believe we need a re-balancing in our economy and if we are to reform the financial sector to ensure the exchequer does not become too reliant on financial services and to prevent another credit crunch.

As we have heard, Mr Osborne is not for turning, well yet anyway.  George Osborne and David Cameron’s credibility are increasingly reliant on the economy and with all the U-Turns the government has taken, politically they will feel they cannot be seen to take another one, regardless of the evidence.

They are boxing themselves into a corner.

The effects are obvious – we have a higher deficit than under Gordon Brown, no growth, and higher taxation with rising inflation.  Yet the “cuts” have not bitten yet, and this will further dampen demand and employment opportunities.

Every time statistics come out a trend of stagnation and of great recessionary trends are shown.  Whether we are technically in recession or not is irrelevant – to all intents and purposes we have been in recession for the past 9 months as costs rise and peoples standards of living decreases.

I fear that in 7 years time we will look back at the previous decade as the decade of stagnation.


GREECE – The End of the Euro is Nigh


The Greek Parliament voted through the austerity Bill yesterday with a larger majority (155 to 138) than expected while the riots continued out side. More riots are expected as culturally the Greek society goes into shock.

Of course there is no way that Greece will either pay back its debts or actually achieve the austerity measures past.  Yet continue to live in this nether world of make believe as the Euro leaders congratulate themselves on the stay of execution for the Euro.

Original article

Greece may or may not vote for the Austerity of a nation for a generation or more, but it seems clear now that the Euro cannot survive in it’s present state.

Right now hundreds of thousands of people are demonstrating on the streets of Athens with a few thousand people committed to a day of violence around the Parliament buildings, rioting and setting fire to cars and vans.

The classic signs of a fractured society being asked to pay a massively high price for a problem they did not create.

Greece has become the fall guy of the Euro zone being asked to have several decades of austerity; falling living standards; a burden of debt it cannot hope to repay and the selling off of it’s national assets in order to prevent the collapse of the Euro and to prevent a massive shock to the European banking system.

Realisation is now hitting many within the Euro zone, that for some countries, including Greece, the only way to bring prosperity back, is to obtain economic growth.  To do this they cannot be subjected to a generation of austerity, where a downward spiral of division and poverty is the only future they have to look forward to.

Around 70% of the debt of Greece is held by German and French banks, and austerity measures is the price Greece is being asked to pay in order to prevent a shock to the banking sector that could yet again freeze up the wholesale banking system and grind the world economy into another recessionary dip.

The sticking plasters of the last 4 years have not worked and the Ostrich like behaviour of the European leaders to deal with the structural problems of the Euro has led us to a slow motion Domino Effect.

The Euro was never a united currency with a fiscal and monetary convergence within Europe.  The Political ideology of the French and German political leaders of the past led to a blind eye being shown to certain economies within Europe.

GREECE is a sacrificial lamb in such a disgraceful way, leading to the sell off of national assets quicker than Margaret Thatcher could ever have dreamed of.  Selling national assets in a quick fire sell off to satisfy such undemocratic organisations like the IMF at rock bottom prices just at the time when investors are least likely to pay a fair price for them is madness.

The IMF has become the standard barer yet again to impose an ideology imposed by the US and other western governments.

How the IMF has been able to rise up the ranks of importance in world financial affairs is staggering.  When we consider that 6 months prior to the financial crisis they were arm twisting governments all around the world to deregulate the financial sector to follow the UK and US banking systems, just before they collapsed.  Yet we are now swallowing medicine from the same doctor that should have been condemned 4 years ago.

The real loser however is democracy.  Democracy is fragile and evolves over time.  The flag barer of democracy is legitimacy.  Legitimacy of governments, laws and policies is paramount for democracy to work.  However, now we are in a cycle of democracy that is disconnected from reality and legitimacy.

The power is no longer with the citizen, but with the banks, IMF, European Commision, and politicians who no longer speak for their own electorate. Unaccountable institutions now have a disproportional amount of power in society.

The Domino Effect will continue  – in slow motion – until the inevitable defaults occur, and the Euro is restructured.  This is just one economic shock that is inevitable, and unless we wake up to the necessary reforms of the financial sector more economic shocks are on the horizon.


Are we heading for a “GREAT RECESSION”, akin to the great depressions of our past?

Each day that passes, the narrative of politics and economics never ceases to become more interesting.  And so these interesting times continue with yet more bad news for our economy.

I remember some time ago, soon after the crisis of Autumn 2008, having a conversation with a friend who stated quite confidently that the only companies going to the wall were badly run businesses.  How house prices (one of his main concerns) would recover and there was plenty of money in our economy.

The conversation followed the belief that this would be a short blip on the economic landscape, and times would return to normal fairly quickly.  Indeed, within a few months the same person, along with various media publications were stating that the banking crisis was either “over”, or nearly “over”.

Several years down the line – 3 1/2 years since the queues outside of Northern Rock – if we look back we can see a timeline which is significantly longer than we were led to believe.

Today, no one knows how long the banking crisis will last, or indeed where it will lead next.

It seems like every week new news is broadcast casting doubt on any economic recovery with commentators always pointing to the fact that “technically” we are no longer in recession.  This however denies the seriousness with which the world economy is stumbling from one economic shock to another affecting the standards of living of billions of people.

We Avoided Going From A Recession To A Slump 

As we know, Gordon Brown “saved the world”, from the worst effects of the banking crisis, and we are constantly reminded how this action prevented a recession from turning into a slump or depression. (Please note the hint of sarcasm before people start giving me abuse!)

My reading of the action taken by world leaders at the time, including Gordon Brown, is that their action was decisive and needed to prevent a collapse of the capitalist system as we know it.  I am glad that Gordon Brown was actually in power at the time, the thought of George Osborne et al being in power, staring into the headlights fills me with horror.

However the structural problems have still not been dealt with and the terms behind the bailouts were poorly thought out.  Like the snooker player planning a centenary break, our esteemed leaders were only thinking as far as the next black.

The idea that we prevented a slump in my opinion is looking less and less like fact and more like propagandist rhetoric.

The more economic indicators are released across the world, the more the economic crisis continues, and for some gets worse and not better.

If I were living in Spain today would I be thinking that this is the normal “economic cycle” or recession, or would I be thinking that this was far more serious?

Spain has 22% unemployment and 45% youth unemployment – a country in debt – and had negative economic growth for 6 consecutive quarters and in the last 5 quarters has not grown more than 0.3% in any quarter. The economy is stagnant at best with now the prospect of enormous cuts in public expenditure, sucking enormous amounts of money out of the economy.

If you were living in Spain would this have been a recession or would you see this as a depression?  The prospects for the population over the next decade in terms of standards of living and general employment is bleak at best.

Spain is by no means the most badly effected economy in the world following the financial crisis, yet these figures give pause for thought after the recent elections and demonstrations there.

Spain though is possibly the most pivotal country within the Euro zone, the country that will have the most effect on the outcome of the Euro’s fate.

Whereas bail outs can be discussed and organised for Greece, Ireland, Portugal and maybe even Italy, to talk of bail outs for Spain would be a bridge too far.

The European Union is the largest economy in the world, a homogeneous trading area, overtaking the USA in GDP in the last decade with over 15 trillion dollars and over 20% of the worlds market share.  The US and EU account for over 40% of the GDP of the planet, so despite the rise in the growth of China and India, the old engine rooms of the world economy are still incredibly important.

Although the rise of these developing economies can aid world economic growth, the fact that these countries “make things” and sell them back to markets in the developed world means that if the developed economies are on their knees then the developing world will grow less as well.

In addition to this there is a massive discrepancy with debt and surplus as China saves too much and collects the debt of the largest single country economy in the world, the US.

The World Economy shrank for the first time in post war history by 2.031% in 2009 showing just how bad the economic crisis has been and how the words of Alistair Darling were so prophetic back in 2008, that this is the worst economic crisis in 60 years. 

Neo-Liberal Philososphy

The crisis appears to be worst where the neo-liberal philosophy was strongest and where the financial markets and economies are at their most mature.

Like 1929, the crisis originated in the US, but due to the spreading of the same ideology across the world by the IMF and World Bank and the ever increasing “Globalisation”, it exposed many interwoven economies and affected those in developing countries who are least able to cope with the fall out.

I remember seeing an interesting debate on the current affairs programme “Newsnight”, before the catastrophic events of 2008, when it was argued that the globalisation and capitalist ideology of the past 25 years had reduced world hunger down to approximately 650 million, that is people who actually go hungry everyday.  Within 6 months of that interview, the amount of the people who go hungry in the world increased back up to 950 million or so.  25 years to decrease it by a third and 6 months to push it up 50%, back to the levels it was previously.  An excellent achievement!

The above graph shows the trend of those who are undernourished courtesy of the worldhunger.org website. Indeed this graph shows that the figures often banded about are actually worse than originally thought.  This graph shows that currently around 13.1% of the worlds population go hungry/are undernourished everyday, 1 in 7 people on the planet.

Globalisation has in fact created more vulnerability in the world economy and the well being of people than before.  Where as many countries were cushioned somewhat from economic strife in one area of the world, the interconnectedness now exposes everyone rather than spreading the risk.

Like the Sub-Prime housing market that started this mess, the spreading of risk added to the problems, hiding them in accounts, products and market values that no one could value or  understand.

The scandal that is the IMF, World Bank and WTO

There appears to be irony in every aspect of life these days, as the two institutions that were becoming almost irrelevant to the developing world prior to the credit crisis are now centre stage “saving” the developed economies of the western world.

Prior to the crisis, the IMF and World Bank were being side lined in trade agreements and loan agreements as developing countries would no longer accept opening up their markets to foreign companies to asset strip them, or deregulating fledgling financial sectors so that speculators could decimate their economies; or sell off their education and health services to the private sector in return for loans so that private companies could make money out of the poorest people on earth while allowing millions to go without education and health provision.  In short the “penny” had dropped.

The WTO constantly struggle to impose its will on developing countries now as deal after deal is scuppered by those who know the harm they do.

These organisations, dominated by the interests of western economies and especially the US, seek to open up markets for the benefit of developed countries with the spin that they will allow “inward investment” and open up markets for developing countries.

Yet the very same US and European Union constantly employ trade restrictions and in some cases the most restrictive practices in the world to prevent damage to their interests.  The US protects its Agriculture sector, steel industry, car industry and airline industry to just name a few.

Irony again rears its head as the IMF prior to the 2007 beginnings of the financial crisis recommended that all countries should follow the US and UK in their approach to light touch regulation in the financial markets.  Praising the US and UK and endorsing their economic policies.  This incidentally is the same IMF that every world leader mentions when justifying their austerity measures, including our own George Osborne.

The IMF was WRONG in 2007 over light touch regulation and DID NOT SEE the crisis coming.  The IMF was WRONG in the way it spread the ideology of neo-liberalism around the world and the WORLD BANK was WRONG in insisting in the liberation of fledgling markets and the privatisation of health and education institutions in developing countries.

Most of these criticisms are barely within the discourse of economics in the mainstream media or political parties.  Both the Labour Party and Liberal Democrats appear to be wedded to the same discourse.

The Effect of Cutting Public Expenditure

As we all know in the UK, we have a deficit that needs to be reduced.  As discussed here in the Truth About The Uk Deficit, the reason for the deficit is largely due to the reduction in tax take rather than simply “over spending” as the chart below shows:

Although outlays were higher at the time of the crisis than tax take by around 2.7% to 3.1% of GDP depending on how you measure it, this was within tolerance limits.  The reason for the decline in tax take and the ever increasing deficit is due to the lack of credit available in the economy and the realisation that much of the wealth created on Banks accounts were not real.  As credit reduced and money was effectively taken out of the economy the recession ensued and people were able to make less money and thus pay less tax.

If we are to bridge this gap we HAVE TO GROW.  If the economy does not grow the deficit will get bigger no matter how many cuts we inflict on our public expenditure.

Over the next 4 years the European Union is embarking on large cuts to public expenditure.  So to are other countries in the world economy like the US.  This will have the effect of deflating the economies in those countries effected, which in turn effect the countries they trade with as they will be able to buy less products, therefore importing less.

This is not a short term problem.  Japan has had mounting debts now for decades and has stuttering growth.

The current rounds of austerity will be affecting the next 4 years, even though most discussions appear to be focussed on the next 2 years.  Effectively the Euro zone average of anywhere between 1.86% to 2.4% of GDP depending on how you measure it (economic statistics are never straight forward!) as the Full fact shows here.

Note this diagram only projects cuts in the first 2 years and the cuts in the UK will be far more in the 2 years after this.

The US is cutting even quicker and plans to decrease the deficit by $4,000 billion or 2.2% of GDP by 2015.

If the 2 economic areas of the world cut between 2% and 2.5% of GDP how will this affect the economy of the areas affected or the world economy?

Nobody really knows is the true answer, the same as no one really knows what will happen next with the banking crisis.

The UK Position

The UK position is perilous at best.  Over the past two days we have had yet more bad news for George Osborne and his plans for growth and reducing the deficit.

Yesterday it was shown that the deficit is increasing under George Osbornes leadership rather than decreasing, and yet growth is also on the wane. Every month we get a further downgrading of growth expectations, today was the turn of the OECD who have down graded to 1.4% this year.  This is after the UK economy has not grown for 6 months and recent figures showing not only consumer confidence is low but that consumer spending is decreasing and is technically in recession after declining for the second quarter in a row by 0.6% in the last quarter, the lowest since the technical recession in 2009.

The “good” news for the UK economy is that the great “re-balancing” of the economy is happening with the stuttering recovery being led by exports.

Many, including the OECD today are calling for the rising of interest rates steadily to counter inflation.  Inflation is not home grown as the depressed wages show, but rather due to commodity markets and increased costs of raw materials.  However, it is argued that increasing interest rates to a more “realistic” level will strengthen the pound and therefore help counter inflation.

Yet it is the weakness of the pound which is helping our exporters, making them more competitive.  If they lose that competitive advantage will that not damage the fragile recovery?  Is this not the classic sign of what happens when you have an effective devaluation?

Further Shocks Will Knock Us Off Course 

We have many more shocks to the economy over the next few years, and which ever way we look at the economic figures they look bad.

Over the next 4 years both the EU and US will go through massive public expenditure cuts and with it probably massive unemployment to go with it.  This will suck out money from the economy causes more stress for consumers and businesses.  If interest rates increase, this will again add costs to businesses, put pressure on households making it harder to pay mortgages that has been the saving grace for many people over the past few years.

This will increase the value of the pound and probably reduce our exporting capacity further having a negative affect on the economy.

Further shock will come as the debts of Greece are most probably going to have to be “re-structured” and Italy may well be the next domino to fall in the Euro zone”.

Speculators have now gravitated to the commodity markets causing further hardship to the real economy and will add to inflationary pressures, putting more pressures on interest rates.

Food riots due to rising prices are likely yet again, while the natural disasters, sadly effecting many areas of the world (including our own, with crop yields looking to be significantly lower this year due to drought), will cause more hardship.

Then we have the prospect of Peak Oil on the horizon.  This is more worrying as it will affect every part of modern life, and is inescapable. No planning has been put into effect by European and western governments generally, it is a forgotten problem, put on the back burner, always something that politicians can come to later.

So are we heading for a Great Recession? Some commentators have already dubbed it as such, but basically without meaning.  If you were living in Spain, Ireland, Greece, Portugal or Italy I would say they already think so.

Other than the odd anomaly like Germany, who seem to be well placed to profit from an export led recovery, with the help of a deflated Euro caused by the southern European countries in crisis, the recovery will likely be in two spheres. The developing countries growing somewhat while the developed countries stutter and stumble trying to get back to normality.

The neo-liberal model is still with us, it has not been challenged economically or politically and continues to hold sway.  Banking reform, though essential still appears to be on the back burner, while those benefiting from high commodity prices like Australia make hay while the sun shines.

This is NOT about economic cycles in a text book, rather an ideology of madness that has taken over undemocratic institutions like the IMF, WTO, World Bank and the Banking Industry that have a disproportionate amount of power in an increasingly interdependent world.

A crisis of democracy is likely to follow, as seen with the recent protests throughout Europe.  This is just the beginning of austerity Europe, and the chances of a “Great Recession” or a “Slump” seem to be closer every day.


The ruling party in Spain got a hammering in the local and regional elections and the markets have reacted in fear.  The FTSE is down 2%, Paris CAC40 down 2% and the Dow down 1.2%.

As European and world leaders bury their heads even further into the sand, the markets are reacting to the fear that without public support austerity measures cannot be inflicted on the peoples of Spain and elsewhere in Europe and ultimately the debt crisis will not be solved.

Spain is the key to unlocking the nightmare that is the destruction of the Euro.  If Spain requires a bail out all bets are off.  The fear is that Spain is simply too big to fail and in effect cannot be bailed out.

The domino effect is still continuing as Italy is struggling with it’s debt crisis, as growth alludes many economies except those strong enough to continue to finance borrowing in bad times.  Germany races away in growth terms while Spain, Italy and Portugal are stuck in a cycle of austerity and stagnation, their debt getting heavier around their necks without any real prospect of alleviating the suffering of their populations.

This could all become a self fulfilling prophecy, as the markets anticipate more bail outs and restructuring of debts around Europe.  The Euro looks on shaky ground and the chances of the Euro zone looking the same way it does now in a years times are slim.

Many will be giving a large sigh of relief that the UK did not take that leap of faith into the Euro zone, but if the Euro implodes, more economic woes are sure to follow and the UK will not escape.

3 1/2 years into the financial crisis and there are no signs of a let up in the bad news.  The UK could well be heading for a long period of stagflation and erosion of  standards of living, even more so than already suffered.  Southern Europe and the emerald Tiger are suffering far worse than ourselves.

If a tide of unrest ensues, as is likely with recent events, a summer of discontent across Europe could put some governments under increasing pressure to default on debt payments and to restructure their debts.  The snowball effect on financial institutions in Northern Europe will put further shock waves into the European economy.

In the end people power may bring all of this to a head, but until, or if it does, we wait in slow motion, a the Euro zone heads toward it’s climax of implosion.

PRESIDENT OBAMA SHOCK: New Conspiracy Theory Over Birthright

The Conspiracy Theorists are out in force.

After the shock that Obama may well indeed be born in the USA, it is now being widely reported that he has ancestry that dates back – no not to Africa but to Ireland.

The flags are out, the Guinness is being consumed and T shirts are being sold.  Hurray for the news that Obama has a more palatable lineage for the American right wing conspiracy theorists to concentrate their energies on.

Fox news can’t wait to get it’s teeth into this one.  Not only does he have ancestry heading back to the black continent of Africa; his middle name is Hussein; but now he has ancestry leading back to Ireland.  Surely more reason to question his birthright to lead the USA, after all there are so many high quality Republican candidates who could do so much of a better job, sponsored by the level headed Fox News.

The spanner in the works however, for the conspiracy theorists, and no doubt those that will be reading this – just see the comments on the last post on Obama from the likes of MICHAEL,  – is that finding Irish ancestry for an American President is likely to INCREASE his support rather than decrease it.

Obama has had the best 2 weeks of his Presidency and Fox News and the Republican Party are scratching their heads.  Surely there is a conspiracy theory in here somewhere?


Very, very slowly this story is creeping up the news agenda, but it may be violence that will be the only way it hits the headlines.

Tomorrow there will be local and regional elections in Spain, but while the rest of Europe worry about figures on a page and the fate of the Euro, the people of Spain, and those protesting in Madrid, have far more pressing concerns to complain about.

Lets for one moment imagine a time in Britain where we had:

Youth Unemployment – 45%
Unemployment rate at – 21.3% (the highest in the EU)
4.9 million jobless
Austerity measures increasing the retirement age
Reduction in civil servant pay
Austerity measures to reduce access to Health care and education

There are a myriad of reasons for discontent in Spain.  There is a feeling of discontent with the two party system that has a stranglehold over their politics.  That politicians are only in it for themselves.  That the public are paying the price for other peoples incompetence and the irresponsible actions of the banking sector.

An overwhelming feeling that Spain is one country that did not benefit in the boom years in the way others did.

These demonstrations are about much more than austerity.  They are about politics and the direction the country is going.  Can a country really survive 45% youth unemployment?

But perhaps we are missing the bigger picture even than the 10 day demonstrations in Madrid.

Demonstrations are now ongoing in Italy, yet up to now they have not been subjected to the severe austerity cuts of other EU countries.  There are fears of more  unrest in Greece and Portugal as fears of an “adjustment” in the debt arrangements moves ever closer.

The snowball effect that is the EU crises is still rolling.  Greece is getting further into trouble; fears that Italy will be next and just the prospect that Spain could need anything like a bail out is on the horizon could send the EU into a spin that will leave the Euro reeling.

This summer is a crucial time, and with people obtaining inspiration from the “Arab Spring”, ordinary people in the EU austerity countries are asking, “why should they suffer”.

Could this be the EU summer of discontent?


(see also article on Bank of England and Euro Interest rate change)

Update – 08/04/2011

Today European finance ministers meet in Hungary to decide the package to bail out Portugal.  The formal request for help has now been received.

The problems though are getting more complex as people realise the divisive nature of this crisis.  There are those who are calling for Osborne to be far more robust in defending the UK in its financial exposure to bailing out those in the Euro zone.  While those negotiating the package have to make a political calculation that any incoming Portuguese government will accept the terms and will not come back to renegotiate it.

This is highly complicated, as there are those who are now questioning the whole Euro zone project with the historical perspective showing how monetary policy over the past decade has not been consistent with the integration of countries economic positions and fiscal arrangements.

As explained by Stephanie Flanders interest rates were far too low for Ireland and the southern Euro countries, yet at the same time those countries not benefiting from a boom borrowed massively.

Political integration, which has halted, is also causing concern as the Euro zone pulls in different directions, as a central economic policy is inconsistent with national sovereign democratic states.

Democracy itself is being challenged as states have to go cap in hand to the European Central Bank and the IMF to accept financial help and fiscal arrangements and conditions in return for this help.  Something developing countries were loath to do prior to the credit crunch, because of the devastating nature of IMF terms and conditions caused to their countries when they were forced to privatise education and health systems and deregulate financial markets.  How the worm turns.


The acting Prime Minister of Portugal has confirmed this evening that a further bail out will be sought to save the economy and plug the gap in the finances.

The Euro zone countries will now bail out Portugal as it struggles to deal with the interest rates to pay back existing loans.

Jose Socrates who was unable to get through Parliament  the austerity measures needed to deal with their deficit, has now formally requested help from the EU. Another bail out beckons as Portugal heads for an emergency General Election in July.

Another Domino falls as Portugal becomes the 3rd country after Greece and Ireland to reach for a bail out.  It is reported that Portugal will need 80 billion Euros for the bail out and the IMF will also be involved.

The next Domino is the big one.  If Spain gets into trouble it will be too big to bail out and will have catastrophic affects on the Euro Zone and the whole European economy.

The UK is reeling at the moment from bad news after bad news economically as growth forecasts are continually down graded and confidence in business, retail and the public dips still further.  The news that the UK will be liable for yet more bail out loans to the tune of maybe £4.4 billion will not go down well with the public who seems to be still bailing out the banks 3 years on from the initial crisis.

At the moment most economic analysts are not forecasting that Spain will ask for a bail out, yet many are putting pressure on the European Central Bank and the Euro by continually speculating that the Euro is failing as a currency and concept.

As they say, watch this space as the domino effect continues.

Other Posts ECONOMICS:

George Osborne’s Project Merlin
Truth about the UK Deficit
Bankers Prove Our Capitalism Has Gone Wrong
Bankers do it again and again
Fred Goodwin