Sunday, May 29, 2011

UK Economy On Collision Course With Catastrophe

David Cameron
An Unelected Prime Minister
Out of His Depth!
Last week Moody's released that they are at some point probably going to downgrade all of the UKs main banks barring two. the question that should be screaming from every headline today should be asking why these two banks have been spared? Barclays and HSBC.
  1. Are these banks the chosen two to see us through a further inevitable banking collapse?
  2. Conservative chancellor George Osborne has ruled out further bank bailing so if they get into trouble they will collapse. 
  3. Is this good news? Banks hold our mortgages, businesses, savings and pensions, they hold the funding of local authorities who buy in our public services, if the banks are allowed to crash, then we as people stand to lose *everything*.
  4. The irony has not gone unnoticed either, that George Osborne actually borrowed £10 billion to loan to Ireland to help STOP their banks collapsing, but apparently thinks it is OK for us Brits to suffer.
  5. Government borrowing last month hit the highest figure ever recorded for April, news that is likely to intensify the pressure on George Osborne from the right of the Conservative party to step up public spending cuts!
  6. Last week saw figures released that UK consumer spending has hit a 2 year low and this is BEFORE Osborne and Cameron's austerity measures kick in.
  7. The OECD, the west's leading economic think tank, has downgraded its growth forecast for the UK for 2011. It is now saying the economy will grow by 1.4% this year. In March it was forecasting 1.5%.
  8. It has also downgraded its forecast for UK growth in 2012, from 2% to 1.8%.
  9. "The figures from the ONS confirm that in the six months since George Osborne’s spending review and VAT rise the economy has flatlined. By making a political choice to cut further and faster than any other major economy this Conservative-led government has choked off the recovery when it should have been secured. And the economy has flatlined before the bulk of the spending cuts and tax rises have kicked in."
Barclays bank has been allowed to make billions of pounds profit from their operations in the UK, yet have used a tax loophole to pay just a few million tax on their profits and Tory chancellor George Osborne has allowed Bob Diamond to get away with this.

The Tory-led  government and the right wing press are not informing the people that the economy is in a dangerous state. The wild fluctuation and ever sinking of the UK economy has only come about since George Osborne started meddling with it and introducing over zealous austerity measures. When labour handed over the economy to the Tories in May 2010 it was in recovery, the Tories must now explain why their policies are going disastrously wrong and why they apparently have no "Plan B".

How bad has the economy got to sink before Osborne decides to act? He and David Cameron have taken a huge unprecedented gamble with the British economy, the like which has never been tried anywhere else in the world and all the signs are the fragile economy is growing weaker day by day and Osborne has no other reply than to say he is not changing his mind.

Cameron and Osborne are both unelected prime minister and chancellor in a unelected government, which had no majority at the general election and which received no mandate for the policies they are now forcing through parliament with the help of the Liberal Democrats who came a poor third in the election only winning 57 seats, so they have even less of a mandate.

This country is being held to ransom and made to pay for the bankers greed, but it goes deeper than this, this government are using the deficit by blowing it all out of proportion as an excuse to make cuts that the Tories always wanted to make and the Liberal Democrats are helping them to do this. Are the Liberal Democrats really that hooked on power that they just cannot see they are being used, or are they just plain thick?

All this and this government have only been in for a year, if they are not removed and not removed quickly this UK economy is on a collision course with catastrophe.

1 comment:

fourbanks said...

well said Gracie they are a walking disaster with the sick and disable at very severe risk and no one coming forward in a official capacity to offer advice and words of comfort

They must be many people people like myself who are at breaking point with the daily threat of loss of money that we are going to be facing and all that entails the worry for many will be enormous and if I'm being honest am not handling this very well and my mental health care worker looking most concerned as my weight is very low for my height with a very probable heart attack due as i cant eat properly

My main illness is not being able to eat so the stress is very bad news as at times it's impossible so you then find yourself on a permanent merry go round of feeling sick and faint