Category Archives: Debt

UK: Driving down a blind ally

The UK Budget is seriously missing the point. It will not create any growth and the already bleak forecasts will have to be downgraded again. Here’s why. The financial industry was one of the main drivers of the economy before the … Continue reading

Posted in Austerity, Conservatives, Debt, Financial crisis, Osborne, Politics, Recession, Tax Cuts, UK | Tagged , , , , | 1 Comment

Inflation: Dr. Jekyll and Mr. Hyde

It has been said over the past few years, that the presence of elevated inflation in the economy can help to reduce the debt burden. One way to do this is monetising debt by using the Bank of England printing … Continue reading

Posted in Austerity, Bank of England, BOE, Debt, Euro Zone, Osborne, Quantitative Easing, Tax, Tax Cuts, UK, Unemployment | Tagged , , , , , , , , , , | Leave a comment

UK Veto Is A Smokescreen For Much Greater EZ Failures

The headlines in the aftermath of last week’s EU summit have largely been focused on the UK veto but surely the more important issue is what Germany is unwillingly to do to save the Euro. Economists generally agree that two … Continue reading

Posted in Bailout, Bonds, Debt, ECB, Economics, Euro Zone, European Central Bank, Germany, Ireland, Merkel, Quantitative Easing, Sarkozy | Tagged , , , , , , , , | Leave a comment

Politicians Owe Banks A Bailout

One concern of the bank bailouts in 2008, was that capitalism works by allowing bad businesses to fail, enabling stronger growth through competition. However, although there may have been some validity to this given banks’ exposures to risky mortgage-backed securities, … Continue reading

Posted in Bailout, Banking, Bonds, Debt, Euro Zone, European banks, Greece, Portugal | Tagged , , , , , | Leave a comment

The Paradox of Austerity

Martin Wolf of the Finanical Times, spoke on BBC’s Newsnight last night of the UK’s Paradox of Thrift. This was first phrased by Keynes and it basically means that when consumers decide to save money in  a recession and deleverage, … Continue reading

Posted in Austerity, Bailout, Bank of England, BOE, Cameron, Conservatives, Debt, Economics, Euro Zone, Osborne, Recession, Tax, UK, Unemployment | Tagged , , , , , , , | Leave a comment

Time To Shock And Awe Euro Zone

Congratulations to German Chancellor, Angela Merkel, for winning the vote in the Bundestag on the EUR440 billion EFSF. But, it’s not big enough. To save the Euro a “shock and awe” policy needs to be implemented to remove any doubts … Continue reading

Posted in Bailout, Banking, Bonds, Debt, ECB, Economics, Euro Zone, European Central Bank, Germany, Greece, Ireland, Merkel | Tagged , , , , , , , , | Leave a comment

Weak Trade Winds Warrant UK Stimulus

Britain sits on the periphery of Euro-Zone and US economic woe and although these hinder domestic growth, well targeted fiscal and monetary injections can help to ease the pain while we wait for favourable trade winds to return. Although, the … Continue reading

Posted in Austerity, Bank of England, BOE, Debt, Economics, Euro Zone, Monetary Policy Committee, Osborne, Quantitative Easing, Tax Cuts, UK, Unemployment | Tagged , , , , , , , , , , | Leave a comment