An economic crash in the UK is inevitable

[Fungus]

I was just looking at an article on Motley Fool, and it doesn't make happy reading. It shows how the chancellor's "economic miracle" has been nothing more than one long borrowing binge. People are increasing their debt just to stand still, which is clearly unsustainable. What about this:

• Our non-mortgage debt is increasing by 11% per year (from £80 billion in 1997 to 190 billion today).
• Our mortgage debt is increasing by 12.7% a year (from £827 billion in 2004 to £932 billion today).
• Non-mortgage housing expenses (particularly council tax) are increasing by 6% a year.
• Our wages haven't increased by anything like these amounts - we are spending 10% more than we earn.
• UK growth is going down, so the Chancellor must raise taxes somehow.
• Unemployment has now risen for the seventh month in a row.
• We are not saving nearly enough for a rainy day or for retirement. We are miles short and can never make it up. 55% of working age adults have no pension.

On top of this, the UK is increasing its debt due to an increasing balance of trade deficit. Thank you New Labour.

I cannot see how this lot can be put right in a controlled way. I think a painful crash is inevitable.

Fortunately the Blair gov. has not reversed the reforms of the Thatcher gov. So our economy is still in some respects relatively sound. BUT the number of jobs in manufacturing has gone down by 0.5 million whereas the number of jobs in the public sector (parking wardens, tax collectors etc) has gone up by 1 million.

And then there is Brown's tinkering.

We have so many regulations that it costs companies a fortune to keep up. I heard on R4 - so it must be true - that the Blair government has created as much tax regulation as in the preceeding 1000 years. Brown's latest wheez - of reducing the number of civil servants - is proceeding 'well': thus far the number has increased.

I was in Luton today looking for a flat to rent to avoid commuting to my current client. Anyway several estate agents told me that there is a shortage of 1 bed flats. It turns out that it is due to huge numbers of Polish workers flooding in from, errm, oddly enough, Poland. Curiously, after leaving the estate agent, I heard Polish being spoken in the street several times. So I don't see that a crash is likely. On the contrary, the market is kept afloat by a shortage of property. Also next year it will be possible to put property into a SIPP. I reckon that might cause a small rise in property value.

It's no coincidence that new house building dropped markedly under this gov. Same for road building. But of course building new roads does not combat congestion. What we must do is tax people to use roads, preventing them from travelling to work, and thus destroying the economy. Obvious innit?

In my view the economy will slowly wind down as the Thatcher 'revolution' is stifled by Brown's tinkering and over-taxation.

As an aside, I thought Slough was the ugliest place I'd ever visited but Luton is far worse.

Fungus

[Fungus]

I have complete faith in Tony Blurrrrr.

It will never happen to us !!

After all we are British !! Stiff upper lip.

As far as I know the Labour government have never lied to us

WC2 in - Complete fecking liar mode

By the time Jo Public realises what a bunch of dishonest incompetent spin obsessed control freak bureacrats this lot are the UK will be tits up.

Fungus

[sappatz]

brown

gordon brown is taking care of everything.. which belongs to him and his cronies.
be assured that should the uk house of cards collapse, evrything will be safe for them.