movin’ on up

Posted: September 21, 2012 in This is the Voice of Lefty Reason

Harry Worth-a-like Mervyn King reckons the economy is slowly pulling out of recession and that happy days will soon be here again.  He has spotted “signs of recovery” but didn’t go into further detail; the green shoots are still below ground level I reckon.  Merv has been the Governor of the Bank of England for a very long time and has overseen the interest rate slash ‘n hold that has worried savers and should have led to a lending / spending spree to kickstart the economy.  The problem for Merv and his fellow dismal scientists is that punters are too scared to borrow and the banks are hoarding in case a rainy day comes around again.  Unemployment, somewhat bizarrely, continues to fall even as demand and output fall; the double dip recession continues to bite.  Consumers are running scared; backed into the corner and trying desperately to pay off previously accrued debt.  The Euro Crisis looms large on the continental horizon although I have yet to hear a workable plan other than kicking out debt ridden countries like Greece and letting “the Germans” run the whole sorry mess.  Germany has steadily and stealthily become the leader of United States of Europe on the back of their massively impressive efficiency levels and a teutonic refusal to get themselves into debt.  I wonder if German telly is full of Pay-Day-Loan-Shark adverts that target the desperate and confused?  Probably not.  I hope Mervyn is correct but I suspect we are not out of the mire just yet.  The economists will, in their words, “let the data run”; eco-speak for “let’s wait and see what happens…”


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