Daily Mail
"We all know that whichever party wins will have to impose huge spending cuts or tax increases - or both - if we're to begin to pay off the terrifying debts piling up for our children. Yet the Prime Minister remains determined to go on peddling the lie that cuts are unnecessary.The outrageous decision to postpone the autumn review insults our intelligence - and makes a mockery of the election. ...For a decade, New Labour condemned as 'racist' the Mail and anyone else who dared suggest that asylum seekers and other migrants were jumping the housing queue.Yet here is the Prime Minister, in the death-throes of New Labour, finally saying he will reverse this (while characteristically failing to specify how).This is the politics of desperation. The sad truth is that this Government has abandoned any attempt to lay the facts before the voters, retreating into a surreal world of secrecy and lies."
Tuesday, 30 June 2009
Eurozone suffers deflation for first time
Telegraph
""Deflation in June will be no surprise to the ECB, but the bank needs to be on its guard that it does not become established," said economist Howard Archer at consultants IHS Global Insight."
""Deflation in June will be no surprise to the ECB, but the bank needs to be on its guard that it does not become established," said economist Howard Archer at consultants IHS Global Insight."
Probably the worst three months for the economy since the 1920s
Telegraph
"We were expecting something bad. But this was truly more horrific than even the most pessimistic among us expected. After the revelation a few weeks ago that the construction sector suffered an almost unprecedented collapse in output in the first quarter there was little doubt that the Office for National Statistics’ estimate that the economy contracted by 1.9pc in Q1 was too generous.But the worst most economists thought that could be cut to was around 2.2pc. News that it was in fact a shocking 2.4pc contraction came as a surprise this morning, causing judders in both the equity and gilt markets."
"We were expecting something bad. But this was truly more horrific than even the most pessimistic among us expected. After the revelation a few weeks ago that the construction sector suffered an almost unprecedented collapse in output in the first quarter there was little doubt that the Office for National Statistics’ estimate that the economy contracted by 1.9pc in Q1 was too generous.But the worst most economists thought that could be cut to was around 2.2pc. News that it was in fact a shocking 2.4pc contraction came as a surprise this morning, causing judders in both the equity and gilt markets."
Britain's recession worse that feared as the economy shrinks at its fastest rate in 50 years
Daily Mail
"The figures come as central bankers warned that Britain could face a double dip downturn unless problems in the financial sector are properly addressed"
"The figures come as central bankers warned that Britain could face a double dip downturn unless problems in the financial sector are properly addressed"
This reveals both moral and economic bankruptcy
Daily Mail
"Gordon Brown has chosen to lie rather than tell the truth. He has chosen to act in the partisan interests of New Labour rather than the country as a whole. He has chosen to pretend that there is no need for spending cuts in the hard years ahead. ....Over the past few weeks, it started to dawn on Gordon Brown that it would be deeply embarrassing if Darling were to go ahead and announce future spending plans. By doing so he would set out for all to see how disastrous the financial situation has become...Yesterday's announcement that the Comprehensive Spending Review has been abolished shows that Gordon Brown has won the battle and that the fight for prudence has been finally lost.This is very frightening indeed at a moment when every respectable financial institution in the world - the International Monetary Fund, the World Bank and yesterday the Organisation for Economic Cooperation and Development - is warning us that we are chronically overspending."
"Gordon Brown has chosen to lie rather than tell the truth. He has chosen to act in the partisan interests of New Labour rather than the country as a whole. He has chosen to pretend that there is no need for spending cuts in the hard years ahead. ....Over the past few weeks, it started to dawn on Gordon Brown that it would be deeply embarrassing if Darling were to go ahead and announce future spending plans. By doing so he would set out for all to see how disastrous the financial situation has become...Yesterday's announcement that the Comprehensive Spending Review has been abolished shows that Gordon Brown has won the battle and that the fight for prudence has been finally lost.This is very frightening indeed at a moment when every respectable financial institution in the world - the International Monetary Fund, the World Bank and yesterday the Organisation for Economic Cooperation and Development - is warning us that we are chronically overspending."
Monday, 29 June 2009
How the ECB’s fig leaf has completely withered away
The Times
"In effect, therefore, the ECB has been lending money by the shed-load to governments, with commercial banks acting merely as a fig leaf for what would otherwise be seen as a blatant monetisation of the most insolvent European countries’ public debt. In normal circumstances, this fig leaf might at least have theoretically protected the virginal purity of the ECB by interposing the commercial banks’ own balance sheets between the government borrowers and the ECB. ....and the ECB’s balance sheet is a joke, since the Greek, Irish and Spanish banks queuing up for ECB funding are near-insolvent and would certainly be insolvent were it not for the limitless supply of money they are getting, in exchange for dubious collateral, from the ECB itself. In short, the commercial bank intermediaries interposed between the ECB printing presses and European governments’ borrowings should not even be described as a fig leaf — more like the climactic G-string in the world’s most expensive strip show."
"In effect, therefore, the ECB has been lending money by the shed-load to governments, with commercial banks acting merely as a fig leaf for what would otherwise be seen as a blatant monetisation of the most insolvent European countries’ public debt. In normal circumstances, this fig leaf might at least have theoretically protected the virginal purity of the ECB by interposing the commercial banks’ own balance sheets between the government borrowers and the ECB. ....and the ECB’s balance sheet is a joke, since the Greek, Irish and Spanish banks queuing up for ECB funding are near-insolvent and would certainly be insolvent were it not for the limitless supply of money they are getting, in exchange for dubious collateral, from the ECB itself. In short, the commercial bank intermediaries interposed between the ECB printing presses and European governments’ borrowings should not even be described as a fig leaf — more like the climactic G-string in the world’s most expensive strip show."
OECD tells Government to cut spending or face hardship for years to come
Telegraph
"In its annual survey of the British economy, the Paris-based institution told the Government to slash the size of its deficit far more than it currently intends or face major problems in the coming years. It came as the Bank for International Settlements (BIS) warned that cutting the record deficits caused by the crisis will be "the main task of policymakers for years to come". ...It came amid speculation that the Government has postponed the expected Spending Review this year, with Shadow Chancellor George Osborne speculating that this was intended to avoid spelling out inevitable post-election cuts.
He said: "This morning, Peter Mandelson and Alistair Darling could not even agree on whether there will be a spending review."Now, at lunchtime, the OECD says the Government has got to be more 'ambitious' and more 'explicit' about the need for spending cuts to deal with Labour's debt crisis."
"In its annual survey of the British economy, the Paris-based institution told the Government to slash the size of its deficit far more than it currently intends or face major problems in the coming years. It came as the Bank for International Settlements (BIS) warned that cutting the record deficits caused by the crisis will be "the main task of policymakers for years to come". ...It came amid speculation that the Government has postponed the expected Spending Review this year, with Shadow Chancellor George Osborne speculating that this was intended to avoid spelling out inevitable post-election cuts.
He said: "This morning, Peter Mandelson and Alistair Darling could not even agree on whether there will be a spending review."Now, at lunchtime, the OECD says the Government has got to be more 'ambitious' and more 'explicit' about the need for spending cuts to deal with Labour's debt crisis."
China's banks are an accident waiting to happen to every one of us
Telegraph
"China's banks are veering out of control. The half-reformed economy of the People's Republic cannot absorb the $1,000bn (£600bn) blitz of new lending issued since December.
Money is leaking instead into Shanghai's stock casino, or being used to keep bankrupt builders on life support. It is doing very little to help lift the world economy out of slump."
"China's banks are veering out of control. The half-reformed economy of the People's Republic cannot absorb the $1,000bn (£600bn) blitz of new lending issued since December.
Money is leaking instead into Shanghai's stock casino, or being used to keep bankrupt builders on life support. It is doing very little to help lift the world economy out of slump."
Brown accused of 'deception' over plans to delay spending review until after election
Daily Mail
"Mr Brown's government relaunch was overshadowed when Business Secretary Lord Mandelson revealed that the Government is shelving plans to set out Whitehall budgets beyond 2011.
....Lord Mandelson pulled rank over Chancellor Alistair Darling by insisting it was currently impossible to forecast how the economy would perform in the months and years ahead. His announcement prompted Cabinet disarray as the Treasury insisted Mr Darling had not made any decisions on the timing of the next spending review.But Mr Cameron said it was typical of a Government determined to 'cover up the truth about cuts'."
"Mr Brown's government relaunch was overshadowed when Business Secretary Lord Mandelson revealed that the Government is shelving plans to set out Whitehall budgets beyond 2011.
....Lord Mandelson pulled rank over Chancellor Alistair Darling by insisting it was currently impossible to forecast how the economy would perform in the months and years ahead. His announcement prompted Cabinet disarray as the Treasury insisted Mr Darling had not made any decisions on the timing of the next spending review.But Mr Cameron said it was typical of a Government determined to 'cover up the truth about cuts'."
Saturday, 27 June 2009
Billions extra in state aid for Northern Rock
Telegraph
"The Government will lend Northern Rock billions more of taxpayer's money than previously disclosed under plans to restructure the nationalised mortgage lender.In documents to the European Commission, the Government also warned it may have to inject more than the planned £3bn of capital "in a stress scenario". "
"The Government will lend Northern Rock billions more of taxpayer's money than previously disclosed under plans to restructure the nationalised mortgage lender.In documents to the European Commission, the Government also warned it may have to inject more than the planned £3bn of capital "in a stress scenario". "
Government lambasted for further regulation reform delay
Telegraph
"The Government has been accused of causing "chaos" after it postponed its eagerly awaited White Paper on financial regulation, fuelling fears it is no closer to overhauling the banking system."
"The Government has been accused of causing "chaos" after it postponed its eagerly awaited White Paper on financial regulation, fuelling fears it is no closer to overhauling the banking system."
Friday, 26 June 2009
Into the red, red, red, we sink with Brown
Telegraph
"For Labour's response to the Governor's wisdom was to say: it is business as usual. Even though there is an unanswerable case that our country is being brought to its knees by over-borrowing, even though it is far from clear that the massive borrowing already engaged in has done anything but keep the public sector and the rest of the clientele shielded from the realities of the Brown economic miracle that the rest of us are having to suffer, that is how Labour proposes to continue."
"For Labour's response to the Governor's wisdom was to say: it is business as usual. Even though there is an unanswerable case that our country is being brought to its knees by over-borrowing, even though it is far from clear that the massive borrowing already engaged in has done anything but keep the public sector and the rest of the clientele shielded from the realities of the Brown economic miracle that the rest of us are having to suffer, that is how Labour proposes to continue."
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