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this is england sinking into the sewer of self-made poverty
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Ayaz Siddiqi
Apr 30, 2013, 9:30:11 AM4/30/13
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LONDON (AP) - Recession may just be a word. But in Britain it may
become a habit - and a dangerous one at that.
It's possible that official figures on first quarter economic growth,
to be released Thursday, could show the country is back in recession,
and tension is building.
Although economists on average expect growth of 0.1 percent on the
quarter, they warn it would take the smallest statistical variation to
put the figure in negative territory. That would place the country in
recession, typically defined as two consecutive quarters of economic
contraction.
Another recession - the third since the 2008 financial crisis - is
already being referred to with foreboding in the media as a "Triple
Dip." Experts warn that its confirmation would create a wave of
negative media attention that would scare consumers away from
spending, feeding into a vicious cycle that has the economy flat-
lining.
"It's psychological - this is all psychological," said Cary Cooper, a
professor at Lancaster University Management School. "It's about the
message that those figures send to consumers and small businesses."
The government desperately wants a strong number to justify its
increasingly criticized policy of painful spending cuts. But recent
indicators on Britain's economy, the third-largest in the 27-country
EU after Germany and France, have been disappointing.
Inflation is rising faster than wages, cutting into people's standard
of living. Unemployment is up at 7.9 percent. Two international
ratings agencies have downgraded the country's credit grade from the
top level AAA, warning about the government's fiscal policies.
The government, which has long played on its AAA rating as a sign of
its economic might, has been pursuing a harsh program of spending cuts
and tax increases to reduce the budget deficit, which at 7.4 percent
of annual economic output is more than twice the EU's 3 percent limit.
Like many governments across Europe that have been scarred by the bond
market turmoil that forced Greece and four other countries to need
rescue loans, Britain is focusing on reducing debt quickly, even at
the cost of short-term economic pain.
What some governments and economists are slowly realizing, however, is
that they may have underestimated the damage such austerity would do.
There's long been pressure domestically in Britain to ease off the
budget cuts, but in the past few days the International Monetary Fund
also chimed in. The fund, whose views carry weight as it is involved
in all of Europe's sovereign bailout programs, has pressured Treasury
chief George Osborne to slow down the austerity measures in hopes of
reviving the economy, whose output was worth 1.4 trillion pounds ($2.1
trillion) in 2012.
As the austerity debate rages on, no other person than the national
spiritual leader - the Archbishop of Canterbury, Justin Welby - has
waded in and used a word no want wants to hear: Depression.
Welby has unusual standing in the world of money because in a previous
life he served as an oil industry executive and now sits on the
parliamentary banking standards committee. He told an audience at the
heart of government in Westminster on Monday that there was an issue
of confidence and trust - and there is need to rebuild both.
"I would argue that what we are in at the moment is not a recession,
but essentially some kind of depression and it therefore takes
something very, very major to get out of it in the same way as it took
something major for us to get into it," he said.
The Bank of England has cut its interest rate to a record low 0.5
percent and pumped money into the financial system in the hope that
will encourage banks to lend money more cheaply. But the results have
been mixed and experts say there is only so much a central bank can do
to create jobs.
On Wednesday, the Bank of England and the Treasury extended until
January 2015 a program to boost lending and help the economy. The
program offers funding at low interest rates to banks on condition
that those rates are passed on to small businesses and households. Its
results so far have been mixed, however.
Even if the economy dodges recession, the daily reality for many
Britons remains tough.
The Trussell Trust, a food bank network, said it fed more than 350,000
people in the year ending in March - more than double the 128,000
served in the previous 12-month period. Tim Boyce, a retired
investment banker who runs a south London branch, said he's seeing the
people behind those numbers. Inside a frosty church that's opened its
doors to the desperate, he watches as they come for emergency handouts
of rice, pasta and beans.
"Most people don't realize the extent of poverty," he said as he
sipped coffee to keep the edge off the chill. "It's hiding in plain
view."
Take the cases of Kevin Bishenden, 50, and his wife, Nicola, 40. He's
an upholsterer who says that no one wants to hire someone his age. She
says she just can't find work. The only reason they aren't homeless is
that Britain's welfare state manages to keep a roof over their heads.
But they've slowly been shedding all their possessions, together with
memories of a past life. First a bike, then stuff from the kitchen.
All the DVDs are going, though even Star Trek only gets you a few
pennies. They've already sold their wedding rings.
He lamented a new council tax payment of 15 pounds ($22.80) that came
into effect as part of government austerity plans. His exhaustion was
plain as he tried to imagine paying for it.
"Where's that supposed to come from?"
Copyright 2013 The Associated Press. All rights reserved. This
material may not be published, broadcast, rewritten or redistributed.
become a habit - and a dangerous one at that.
It's possible that official figures on first quarter economic growth,
to be released Thursday, could show the country is back in recession,
and tension is building.
Although economists on average expect growth of 0.1 percent on the
quarter, they warn it would take the smallest statistical variation to
put the figure in negative territory. That would place the country in
recession, typically defined as two consecutive quarters of economic
contraction.
Another recession - the third since the 2008 financial crisis - is
already being referred to with foreboding in the media as a "Triple
Dip." Experts warn that its confirmation would create a wave of
negative media attention that would scare consumers away from
spending, feeding into a vicious cycle that has the economy flat-
lining.
"It's psychological - this is all psychological," said Cary Cooper, a
professor at Lancaster University Management School. "It's about the
message that those figures send to consumers and small businesses."
The government desperately wants a strong number to justify its
increasingly criticized policy of painful spending cuts. But recent
indicators on Britain's economy, the third-largest in the 27-country
EU after Germany and France, have been disappointing.
Inflation is rising faster than wages, cutting into people's standard
of living. Unemployment is up at 7.9 percent. Two international
ratings agencies have downgraded the country's credit grade from the
top level AAA, warning about the government's fiscal policies.
The government, which has long played on its AAA rating as a sign of
its economic might, has been pursuing a harsh program of spending cuts
and tax increases to reduce the budget deficit, which at 7.4 percent
of annual economic output is more than twice the EU's 3 percent limit.
Like many governments across Europe that have been scarred by the bond
market turmoil that forced Greece and four other countries to need
rescue loans, Britain is focusing on reducing debt quickly, even at
the cost of short-term economic pain.
What some governments and economists are slowly realizing, however, is
that they may have underestimated the damage such austerity would do.
There's long been pressure domestically in Britain to ease off the
budget cuts, but in the past few days the International Monetary Fund
also chimed in. The fund, whose views carry weight as it is involved
in all of Europe's sovereign bailout programs, has pressured Treasury
chief George Osborne to slow down the austerity measures in hopes of
reviving the economy, whose output was worth 1.4 trillion pounds ($2.1
trillion) in 2012.
As the austerity debate rages on, no other person than the national
spiritual leader - the Archbishop of Canterbury, Justin Welby - has
waded in and used a word no want wants to hear: Depression.
Welby has unusual standing in the world of money because in a previous
life he served as an oil industry executive and now sits on the
parliamentary banking standards committee. He told an audience at the
heart of government in Westminster on Monday that there was an issue
of confidence and trust - and there is need to rebuild both.
"I would argue that what we are in at the moment is not a recession,
but essentially some kind of depression and it therefore takes
something very, very major to get out of it in the same way as it took
something major for us to get into it," he said.
The Bank of England has cut its interest rate to a record low 0.5
percent and pumped money into the financial system in the hope that
will encourage banks to lend money more cheaply. But the results have
been mixed and experts say there is only so much a central bank can do
to create jobs.
On Wednesday, the Bank of England and the Treasury extended until
January 2015 a program to boost lending and help the economy. The
program offers funding at low interest rates to banks on condition
that those rates are passed on to small businesses and households. Its
results so far have been mixed, however.
Even if the economy dodges recession, the daily reality for many
Britons remains tough.
The Trussell Trust, a food bank network, said it fed more than 350,000
people in the year ending in March - more than double the 128,000
served in the previous 12-month period. Tim Boyce, a retired
investment banker who runs a south London branch, said he's seeing the
people behind those numbers. Inside a frosty church that's opened its
doors to the desperate, he watches as they come for emergency handouts
of rice, pasta and beans.
"Most people don't realize the extent of poverty," he said as he
sipped coffee to keep the edge off the chill. "It's hiding in plain
view."
Take the cases of Kevin Bishenden, 50, and his wife, Nicola, 40. He's
an upholsterer who says that no one wants to hire someone his age. She
says she just can't find work. The only reason they aren't homeless is
that Britain's welfare state manages to keep a roof over their heads.
But they've slowly been shedding all their possessions, together with
memories of a past life. First a bike, then stuff from the kitchen.
All the DVDs are going, though even Star Trek only gets you a few
pennies. They've already sold their wedding rings.
He lamented a new council tax payment of 15 pounds ($22.80) that came
into effect as part of government austerity plans. His exhaustion was
plain as he tried to imagine paying for it.
"Where's that supposed to come from?"
Copyright 2013 The Associated Press. All rights reserved. This
material may not be published, broadcast, rewritten or redistributed.
rst0
Apr 30, 2013, 10:55:04 AM4/30/13
to
On Apr 30, 6:30 am, Ayaz Siddiqi <ayaz.s.sidd...@gmail.com> wrote:
> LONDON (AP) - Recession may just be a word. But in Britain it may
> become a habit - and a dangerous one at that.
>
> It's possible that official figures on first quarter economic growth,
> to be released Thursday, could show the country is back in recession,
> and tension is building.
Hoo-ray!!!! and they don't have any colonies to loot to pump up its
> LONDON (AP) - Recession may just be a word. But in Britain it may
> become a habit - and a dangerous one at that.
>
> It's possible that official figures on first quarter economic growth,
> to be released Thursday, could show the country is back in recession,
> and tension is building.
economy!!!!
Zang Fang Zhou , PLA centre for CYBER - WARFARE unit 61398 , Shang Hai , CHINA
Apr 30, 2013, 11:57:08 AM4/30/13
to
UK has been in RECESSION since Maggie Thatcher took POWER
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