Posted on 10/17/2011 5:30:52 AM PDT by blam
UK Economy Brought To A Grinding Halt By Euro Crisis
By Robert Winnett, Deputy Political Editor
6:00AM BST 17 Oct 2011
The Ernst & Young ITEM Club, which uses the Treasury’s forecasting models, warns today that the economic situation is “worse than we thought”.
It concludes that the “bright spots” in Britain’s economic recovery have “dimmed to a flicker” because of the ongoing crisis in the single currency.
George Osborne, the Chancellor, and Tim Geithner, the US Treasury Secretary, are becoming increasingly exasperated at the lacklustre response of European leaders to the ongoing single currency crisis.
Europe is expected to finalise plans for a two-trillion euro bailout for the single currency area over the next week.
However, there are growing fears that the package will fall short. The International Monetary Fund (IMF) is expected to be asked to help shore up Italy and Spain, if this becomes necessary – a move which could lead to British taxpayers facing a multi-billion pound bill.
The euro turmoil has led to the respected Ernst & Young ITEM Club cutting by almost fifty percent its prediction for British economic growth in 2011 since the summer. It is now expecting the economy will grow by just 0.9 percent this year, signalling almost zero growth before the end of the year.
The forecaster also warned that the recent announcement from the Bank of England that it as adding another £75 billion of quantitative easing was unlikely to help restore Britain’s recovery. It recommends that the Bank should consider cutting interest rates from 0.5 percent to 0.25 percent.
Last night, Peter Spencer, the chief economic advisor to the Ernst & Young ITEM Club, said: “It’s worse than we thought. The bright spots in our forecast three months ago - business investment and exports -
(snip)
(Excerpt) Read more at telegraph.co.uk ...
So, time for the guessing game!
How much does the FReeper community think that the IMF (ie, the USA) is going to chip in on this one? Says the Eurozone needs two trillion; what do you think our share of the contribution is going to be?
I’ll start off with a guess of 200 billion!
What is desperately needed is an iron-willed "Thatcherite", who will zero the deficit, reform entitlements and cut government in half.
But the trouble is no-one wants to do that, especially someone like Romney. He's simply one of the old-guard, tax & spend, PC, don't-offend-anyone, elites.....completely ill-equipped for the task of "Slash & Burn". And unfortunately, "Slash & Burn" is what's required, as the math indicates there isn't much time left...maybe a year or less.
Question: Who of the current crop of candidates has the guts to do what needs to be done, and is willing to accept going down in the books as the cruelest leader in American history since William Tecumseh Sherman?
Answer: No-one.
Why? Call it fear, or a lack of nerve, or whatever..... but if this political cowardice goes on much longer, it'll fast turn into the "Nero Effect", and all any of them will be able to do is watch as it burns.
Here's hoping I'm dead wrong.
As one by one, economies of various countries aroung the world stall out, the degeneration of the market place continues to spread. When are the smart people going to realize this is no ordinary recession? The situation has gone far beyond that, reaching a parallel to the Great Depression, and we are yet only in the early stages. There are bold steps that may be taken to reverse this dreadful prospect, but either the people who can do something cannot or will not act in the best interests, or the problem is so deep-seated, so ingrained, that nothing less than total collapse and an apocalypical world face us. The Book of Revelations does predict just this sort of desperate times, and they may be nearer than one may think.
Not all is doom and gloom, of course. Silver linings and all that, even in chaos there is real opportunity to re-establish a solid moral basis for regrowth. We already have the manuals and most of the machinery in place for a genuine renaissance and rebuilding a bountiful life.
Think of this as somebody who has just kicked a hornets’ nest. The hornets have a way of responding which mostly discourages further molestation.
You're such a liar. I have a credit card with a high balance. I went to the ATM [or what I like to call "the free money machine"]and got a cash advance with another credit card. Then I used the free cash to get a money order. I sent the money order in and paid off the 1st card, in full thank you very much. Works like a charm.....and you should see all this nifty stuff I got; like my awesome slinky collection and autographed Sham Wow guy poster. Borrowing to prosperity is the road for me. /s
Oh, I’ll raise you to $500 billion or more
After all, just 2 months ago US Congress (Boehner and Mcconnell) made such a deal! They handed Geither and obama a book of overdraft checks for up to $2.5 trillion more on our national debt. That was supposed to take us into 2013...
Since then Timmy has already been to Europe almost weekly to “consult” with the IMF (which is now run by a former Chicago labor lawyer)
So if “we” give hundreds of billions to Europe via the IMF (as our “obligation”) and if “we” run into our new $16 TRILLION debt ceiling by next summer, ...meh? Harry Reid just threatens again to shut down the US economy and stop the social security checks and military pay..... right before the 2012 elections.
Say, can you loan me $1000? But only give me half of it. Then I'll owe you $500 and you'll owe me $500....and we'll be even!
.....and people say I'm not fit to be Sec Tres.
They're printing play money as fast as D.C. Except an increase in the price of printer ink world wide.
However, there are growing fears that the package will fall short. The International Monetary Fund (IMF) is expected to be asked to help shore up Italy and Spain, if this becomes necessary – a move which could lead to British taxpayers facing a multi-billion pound bill.
Duh.
France just gave Greece war ships for free. The world economy is in the dumpster. Tensions are rising between muslim and Christain nations. A two year old can see the writing on the wall that we're on the fast track to another Crusades on a world wide level.
You’re quite the gambler!
As to your prognostication, sadly you’re probably right.
Actually, I think they're already using our scheme. It pisses me off; just when one thinks he's emerged from the bowels of the financial kingdom with a fish in his mouth, it turns out they've been doing it for 30 years. How discouraging.
If this is true, there is hope.
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