Us and the Rest Of The World
“Drifting to Disaster” by Angus Hanton is a must-read article. Within it explains very clearly the risks that face this country due to the mass sell-off of assets that has been occuring over the past few years. A bleak outlook is portrayed, and quantified with facts and figures. The article explains how Britain’s balance of trade with the rest of the world is way out of kilter, and that the present British lifestyle financed by more and more borrowing is doomed to end in tears before long. The men at the top, Brown and Blair, the architects of the demise of the British economy in recent years, get the following treatment:
It seems that most politicians simply don’t realise what is happening and have little concern for the UK’s balance of payments position. They will only react either in the event of a crisis or when they are put under pressure. If a crisis is indeed inevitable, it will be better for the problems to be generally recognised sooner rather than later – as has been said, “the better the party the worse the hangover�?. Perhaps it is time to stop the party.
The following stark conclusions are drawn:
If the arguments presented above are correct then the UK economy is drifting towards a sterling devaluation and a recession at some point. Such a recession would be characterised by increased prices of goods, falling wages and probably higher interest rates. The government might still be able to avoid this by acting to make UK companies less attractive to foreign buyers and by adopting policies to make foreign goods less attractive to UK consumers.
