We’re all living in Never Never Land

By tomtom

  Use pensions to buy homes says the CBI from its parallel universe.

Massage growth they say, as we lurch from one crazy scheme to another. Growth relies on demand fuelled by borrowing in today’s world, it has to be said. But with debt being written off credit is destroyed. So there is no money for the banks to lend on easy terms.

Then, with these same bankers hoovering up all the spare cash in the economy to shore up their balance sheets and the demand curve lagging the supply curve. There’s little hope of growth beyond what we see, 0.2 – 0.5% and it will stay this way till government and people learn to live within their means.

   With circa £650bn flowing into the Treasury and we can’t balance the books. There’s something rotten in the state of government. to paraphrase the Bard.

  The real problem here, is the vociferous client state created by Labour over the past decade. As and until they are made to understand, that the gravy train has hit the buffers, there’s little chance of progress and that’s it in a nutshell.

 Watch this space I’ll be back!

 Tom