Britain will grow by 0.8pc this year, the IMF said in its World Economic Outlook, drawing its prediction into line with the Treasury’s Office for Budget Responsibility. The Bretton Woods institution’s forecast for the UK is now better than in January, when it was slashed to 0.6pc, but worse than September’s estimate of 1.6pc. Its 2013 forecast was unchanged at 2pc. The UK’s improved prospects reflected a sunnier outlook for the global economy as a whole. The IMF said there had been a “reacceleration of activity” and that “high frequency indicators point to stronger growth”. It added: “Growth in the UK, where the financial sector was hit hard by the global crisis, will be weak in early 2012, before recovering.” I wonder what the report would have been if Osbourne had said NO to the IMF? They've had another £10 billion, I'd like to know where the money's coming from? Yet, in today's Times, there is an article on Food Banks, where the unemployed and some working people, who are lacking basic things have free food. In this nation, where we keep lending to others, give £29 billion per year in foreign aid, yet we have our own who don't have enough money to feed themselves. Its a national disgrace. And if anyone accepts it then they too are a disgrace. We will see things get much worse when the new benefits set in and the rest of the cuts take place. We may even see soup kitchens appear on our streets. Who can we blame? Well I don't blame the unemployed who may have worked until this crisis, I don't blame the sick and the disabled who have been targeted by this government. I don't even blame the rich who have had tax cuts, if they are offered anyone would take them, that's human nature. However, I do blame this government and past ones who have brought this country down to this level through their policies and actions. The political elite, who have no idea what they have done to people in this country and don't even care in many cases. So, what can we now do while we are in this mess?I wonder what the report would have been if Osbourne had said NO to the IMF? They've had another £10 billion, I'd like to know where the money's coming from? Yet, in today's Times, there is an article on Food Banks, where the unemployed and some working people, who are lacking basic things have free food. In this nation, where we keep lending to others, give £29 billion per year in foreign aid, yet we have our own who don't have enough money to feed themselves. Its a national disgrace.
Access Investments-Building Awareness - European Union-ROMANIA
Wednesday, April 18, 2012
Britain will grow by 0.8pc this year, the IMF said in its World Economic Outlook, drawing its prediction into line with the Treasury’s Office for Budget Responsibility. The Bretton Woods institution’s forecast for the UK is now better than in January, when it was slashed to 0.6pc, but worse than September’s estimate of 1.6pc. Its 2013 forecast was unchanged at 2pc. The UK’s improved prospects reflected a sunnier outlook for the global economy as a whole. The IMF said there had been a “reacceleration of activity” and that “high frequency indicators point to stronger growth”. It added: “Growth in the UK, where the financial sector was hit hard by the global crisis, will be weak in early 2012, before recovering.” I wonder what the report would have been if Osbourne had said NO to the IMF? They've had another £10 billion, I'd like to know where the money's coming from? Yet, in today's Times, there is an article on Food Banks, where the unemployed and some working people, who are lacking basic things have free food. In this nation, where we keep lending to others, give £29 billion per year in foreign aid, yet we have our own who don't have enough money to feed themselves. Its a national disgrace. And if anyone accepts it then they too are a disgrace. We will see things get much worse when the new benefits set in and the rest of the cuts take place. We may even see soup kitchens appear on our streets. Who can we blame? Well I don't blame the unemployed who may have worked until this crisis, I don't blame the sick and the disabled who have been targeted by this government. I don't even blame the rich who have had tax cuts, if they are offered anyone would take them, that's human nature. However, I do blame this government and past ones who have brought this country down to this level through their policies and actions. The political elite, who have no idea what they have done to people in this country and don't even care in many cases. So, what can we now do while we are in this mess?I wonder what the report would have been if Osbourne had said NO to the IMF? They've had another £10 billion, I'd like to know where the money's coming from? Yet, in today's Times, there is an article on Food Banks, where the unemployed and some working people, who are lacking basic things have free food. In this nation, where we keep lending to others, give £29 billion per year in foreign aid, yet we have our own who don't have enough money to feed themselves. Its a national disgrace.
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Others, like the euro periphery, have been locked out of the markets.
But, having been the high priest of austerity as the way of dealing with the debts, the IMF conducted a climb-down of sorts. "Fiscal tightening can generally be expected to reduce short-term growth," it said, but the impact was probably harsher than "identified in earlier studies".
In fact, it showed that austerity could slow growth so much that debt as a proportion of GDP would rise – an argument used by Labour. "Relatedly, it may take time for financial markets to reward fiscal tightening. Therefore, borrowing costs could actually rise as the deficit narrows." Punishment, as it were, for good behaviour.
The analysis may help persuade markets to be more forgiving of countries that are cutting spending but suffering depleted growth as a result. It could also support the IMF's calls for countries to stick with austerity but "backload" it.
In the meantime, "in the current environment of limited policy room", it urged central banks to act. The Bank of England "can further ease its monetary policy stance" by printing more money, the report said. But it was more prescriptive with the European Central Bank, which "should lower its policy rate while continuing to use unconventional policies to address banks' funding and liquidity problems".
After all, as the IMF made clear, the improving outlook does not mean the risks aren't terrifying
Unsustainable state spending is that spending which does not produce an output market value that at least equates to the value of the redistributed wealth that enabled that state expenditure.
Think government no-jobs, quangoes, white elephant projects, state control of the means of production - the list is endless as the incentive to balance the spending with market valued output is missing - without market valuation of outputs we have moral hazard writ large.
And where we have moral hazard writ large we always end up with growing fiscal deficits and accumulated sovereign debt as politicians and certain of the electorate (client state) gorge themselves via moral hazard.
No, No! scream the swivel eyed Keynesians - the problem is a lack of demand in the economy - where the private sector will not spend the government must. And so the arch promoters of moral hazard clutch onto their belief that all government spending is qualitatively the same as private spending as they reflexively point to the deeply flawed calculation of GDP.
Austerity? Bring it on if it means reducing GDP down to its real and sustainable size - and let the parasites find something to do that others are willing to buy in an arms-length transaction.
There has been a subtle shift in tone at the International Monetary Fund since..."
No there hasn't.
Since WW2 there has been nothing but Eurocrat Eurocentric socialists - with the possible exception of Gutt and Rooth. How many of us realize that the supposedly **International**MF has had a Euro at the helm since the war and for almost two thirds of that period it's been a cheese-eater.
If there's been any subtle shift in the IMF thanks to more of the same Eurocrat species running the show it's been to scale up the rhetoric around why Europe still (apparently) needs bailing out by the rest of the planet despite all its problems (still) being self inflicted.
...financial market concerns about the indebtedness and competitiveness of some euro-area countries remained and, if anything, had intensified on the month. Even if the worst risks did not crystallise, the process of rebalancing was likely to act as a persistent drag on the euro-area periphery as fiscal consolidation continued and real incomes were depressed. And, notwithstanding the recent decline in bank funding costs, there remained a high degree of uncertainty over how this rebalancing would unfold. Failure to tackle successfully the vulnerabilities in the euro area, and any related intensification of financial market stresses, could result in a much weaker and more challenging external environment for the United Kingdom.
09.42 The Bank of England also said it had not ruled out "GDP falling for three successive quarters," which would throw the UK back into recession. More from the minutes:
With output having already contracted in the fourth quarter of last year, the Committee could not rule out the publication of official data showing GDP falling for three successive quarters. Nevertheless, the Committee’s judgement was that, abstracting from both the puzzling weakness in measured construction output and the impact of one-off factors, the economy appeared likely to be expanding, albeit only modestly, in the first half of the year.
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