A 7-year state of emergency….

Monday, 8th August 2016

In this issue of Money Truths….

  • Captain Carney fires the bazooka….
  • So what does it all mean?
  • A 7-year state of emergency….
  • The direction of travel….

Captain Carney fires the bazooka….

Three weeks ago the Bank of England’s Monetary Policy Committee considered it unnecessary to fiddle with the British economy. It wanted to wait-and-see before making a move.

Twenty-one days later that same committee felt it had waited and seen enough….

The bank’s forecasters had peered into the future and they didn’t like what they saw. They saw growth slowing to a standstill and the UK in recession. They saw 250,000 British workers about to lose their jobs. They saw house prices falling. They saw living standards falling. In short they saw the good ship Great Britain heading for the rocks.

Up on the bridge Captain Mark Carney and his crew made-ready to make the necessary adjustments….

On Thursday they pressed the buttons and pulled the levers that will guide the ship into calmer waters – at least that’s the hope….

Interest rates were cut for the first time in 7 years. The committee lopped off a quarter point. The new rate of 0.25% is the lowest ever.… Click here to read more

Confusion, conflict and contradictions….

Monday 1st August 2016

In this issue of Money Truths….

  • An unanticipated spurt of growth….
  • The unfathomable jigsaw puzzle….
  • The gloomy and the glum….
  • Reasons to be cheerful….
  • Sometimes we expect too much of information….

An unanticipated spurt of growth….

The really big news last week came on Wednesday when the Office for National Statistics reported that Britain’s Gross Domestic Product (GDP) had grown 0.6% during the second quarter of 2016 – the three month period up to June.

GDP is a measure of economic activity and represents the total value of goods and services produced and consumed during the period in question.

Analysts expressed surprise that the economy had grown as much as it had. Prior to last week’s announcement they’d been talking down expectations.

City of London economists – the real top-drawer & top-dollar prognosticators – had predicted Q2 growth of no more than 0.4%, in line with growth in the first quarter of the year.

The fact that these well-funded, well-resourced and well-paid seers into the future fell short with their clairvoyance is neither here nor there. Getting it wrong is what they do at least half of the time.

The important thing is that unanticipated spurt of growth.… Click here to read more

Italy – epicentre of the next financial earthquake….

Monday 25th July 2016

Good morning, friends,

In this issue of Money Truths….

  • No financial Armageddon – at least not yet….
  • The rebalancing act….
  • The dangerously sick man of Europe….
  • The bail-out is coming….
  • The natives are restless….

No financial Armageddon – at least not yet….

Prior to the Referendum on EU membership, we were subjected to ‘Project Fear’.

The incumbent Prime Minister, his Chancellor, senior politicians, business leaders and other ‘Influencers’ all promised the British people misery, mayhem and catastrophe if we were foolish enough to vote Leave….

‘Britain would be poorer by £4,300 per household….’ (George Osborne, 27th February 2016)

‘The value of people’s homes will be affected and people trying to get on the housing market will be hit….’ (George Osborne, 8th May 2016)

‘Across Britain as many as 820,000 jobs could be lost….’ (George Osborne, 23rd May 2016)

Health Secretary, Jeremy Hunt, said the NHS would be ‘starved’ of cash. Energy Secretary, Amber Rudd, said energy bills would ‘soar’. Education Secretary, Nicky Morgan, said a Brexit vote would ‘devastate’ the life chances of children and young adults….

We were told businesses would vacate the country overnight. President Obama told us we’d be at the back of any trade-deal queue….… Click here to read more