Bank of England leaves interest rates unchanged

The Times
"Interest rates were left unchanged at 0.5 per cent by the Bank of England yesterday, as the Monetary Policy Committee (MPC) kept the price of money at record lows to stimulate the flagging economy.Members of the committee said that they intended to continue with the £200 billion programme of quantitative easing, pumping cash into the financial system until the completion of the scheme next month."

Why is no one telling us the truth about spending cuts?

Telegraph
"In the parallel universe of Little Ed, other people's money – his
play dough – never runs out. Here on Planet Earth, however, it does – and has. Britain's coffers are empty, which explains why the Government is borrowing billions to pay the bills. The cost of this debt is rising, as lenders fret over our ability to fulfil obligations. Without tough remedial action, there will come a moment when international markets refuse to accommodate all our needs, or charge a price that is so prohibitive it will be politically unacceptable.Britain has got away with it, so far, because as the Debt Management Office pumps out Government IOUs, known as gilts, the Bank of England is furiously buying them back through its programme of so-called quantitative easing (QE). Yes, we're printing money to fund our own credit. This, I'm sure you've spotted, fails the common sense test. Were it that easy, the whole world would be at it."

Euro brinkmanship escalates as ECB shuts door on Greek bail-out

Telegraph
"The European Central Bank has given its clearest warning to date that there will be no EU bail-out for Greece if it fails to control its spiralling deficit, raising the stakes in a game of brinkmanship over the future of the euro."

Government must deliver details for deficit plan to be credible, MPs warn

Telegraph
"The Treasury Committee also called on the Treasury to consider publishing forecasts showing a range of possible UK debt interest rates, which many fear will rise as the Government continues to borrow heavily.John McFall, chairman of the committee, said witnesses to the PBR inquiry agreed that the Chancellor had not given sufficient detail on how a reduction in the structural deficit would be achieved."

Are the Government measures adequate?

Frank Field
"I probably sounded the most grave warnings of anyone in the debate. I am not against the Bill, but I think it is too little and far too late. I've been on about this issue following the 2008 Pre Budget Report."

Greece faces intrusive EU surveillance amid reports of a burgeoning deficit

Telegraph
"Greece is bracing itself for the most intrusive surveillance of any eurozone state since the launch of the single currency, amid reports that the country's budget deficit is spiralling further out of control."

Pimco warn of '80pc' chance of UK rating downgrade

Telegraph
"Britain will lose its gold-plated sovereign credit rating if Labour wins the coming election and refuses to take tougher action on the public debt, the world's biggest bond house has warned."

Iceland blocks deal to pay Britain and the Netherlands £3.6bn for losses caused by collapse of failed bank Icesave

Daily Mail
"Iceland's president today blocked a bill to pay Britain and the Netherlands £3.6billion for losses caused by the collapse of one of its banks.Olafur Ragnar Grimsson vetoed the legislation, which was passed last month by the country's parliament, after receiving a petition signed by a quarter of Iceland's 320,000 population.His decision, only the second time since Iceland's republic was founded in 1944 that the president has not signed into law a bill approved by parliament, automatically triggers a national referendum on the issue."

Beware the crisis around the corner

FT
"The US economy is sickly, but the mood of impending doom has lifted. The response of US and other authorities to the emergency is unfinished business and needs continuing attention – but in 2010, if the crisis continues to ease, the danger is that politicians will relax and minds will wander from the need for new financial rules."

There are tough times ahead but my money's on a resurgent UK

Telegraph
"In economic terms, 2009 was one of the most calamitous years in the nation's history. I suppose it is fitting that forecasters should have shared in this misery, professionally as well as personally. .....What's more, when the recovery does come, firms are likely to work existing employees harder rather than take on extra staff. I would therefore not be surprised to see unemployment rise to over 3m by the end of the year and to stay around that level for several years."

Icelandic revolt upsets Icesave deal

Telegraph
"Iceland’s president will on Saturday meet activists calling on him to veto a deal that would return £3.4bn of Icesave deposits to former customers in Britain and Holland."
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Iceland approves UK payout after Icesave collapse claim
"Iceland's parliament yesterday narrowly approved a Bill that will pave the way for Britain and the Netherlands to recoup the €3.8bn (£3.4bn) lost by customers of the online savings bank Icesave, which collapsed under a mountain of debt in 2008.Under the deal, which is deeply unpopular with Icelanders, the two governments will receive payments over the next 14 years after compensating the losses of more than 320,000 of the bank's customers."

Arabia takes the New Silk Road to China, spurning the West

Telegraph
"With hindsight we can see that two events occurring within days of each other in late 2001 brought about an epochal change in the world's strategic system, drawing China and the Mid-East oil powers into each other's arms again after five centuries of estrangement. The old Silk Road came back to life."