Wednesday, April 25, 2012

Double dip recession hits Britain as economy falters, GDP figures fall for second quarter in a row, austerity is killing UK, new financial model?

Dear All

For sometime, I have been saying that despite all the hoo ha of everything is going well; Britain will slip into a double-dip recession.

George Laird was right again.

And ahead of the curve!

This is the first double-dip recession since the 1970s after a surprise contraction in the first three months of the year.

Instead of starting massive overhaul and restructure Britain has tried to prop up the existing problem of debt.

The problem is that we need to see an EU wide solution to problems within the Eurozone.

Greece shows us that the fight must be fought by all with unity and one purpose.

The 99% cannot be used to the betterment of the 1%.

Solution is short term pain, and it is going to hurt, but better now than a lifetime.

Government needs to stop being in the pocket of bankers, we need to take back our economy, we need to end asset stripping of sovereign countries and new financial sector with different priorities.

Official figures today showed the economy shrank by 0.2 per cent in the first quarter of 2012 having declined by 0.3 per cent in the final quarter of 2011.

Tories have been quick to trumpet that their austerity is working but the cuurent situation shows otherwise as the first double-dip since 1975 hits us.

Debt is a black hole with its own gravity no matter how much is flung at it, the hole can never be filled.

The news is a bitter blow to Chancellor George Osborne in the wake of last month’s 'omnishambles' Budget.

We need to recreate a manufacturing base, to get people back into work so they will spend and save, we have to return fix so many things that Europe needs its own Marshall plan.

At Prime Minister's Questions, David Cameron said:

“They are very very disappointing figures and I do not seek to explain them away.”

Banks will not lend to business, so Government needs to create a new state banking sector to address this problem.

The model of this concept should be localised to City banks that channel money in conjunction with state enterprise groups who help people develop small and medium businesses.

Local jobs for local people!

We are face a the longest economic slump for 100 years worse even than the Great Depression of the 1930s.

Europe must address these problems immediately when problems reach the public level as they have, its time to get serious.

Andrew Smith, chief economist at KPMG, said:

“It's official, we're in a double-dip”.

He added:

“But worse, output remains broadly unchanged from its level in the third quarter of 2010 and, four years on from its pre-recession peak is still some 4 per cent down – making this slump longer than the 1930s Depression”.

We can’t grow our way out of debt with more debt.

Sooner or later, expect the problems of Greece, Holland, Spain, Portugal and France to hit these shores, the political class need to rebalance the economy or the biggest seller in the UK will be riot gear.

Yours sincerely

George Laird
The Campaign for Human Rights at Glasgow University

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