Why the world envies Mr Osborne

RenovationMan

Interesting article from Stephanie Flanders, especially in light of the UK retaining its AAA rating:

http://www.bbc.co.uk/news/business-15150162

"You might have missed it: there's been a lot going on lately. But the UK is back on top.

The government's economic policies over the past year have made it the envy of the free world.

No, I'm not paraphrasing Mr Osborne's speech at the Conservative Party conference.

In fact, party conferences are not a great demonstration of my point. But you have to admit, the more you look at the way the US and the eurozone have confronted their economic problems lately, the better the UK looks."

Cont...

michaels

Its fair enough, the US did not lose its triple A over fears over its solvency but rather the fear that the institutions of gov. could not be relied on to do what is required in order to service bonds.

Thrugelmir

Makes a change from the UK as a whole must borrow and spend more reports in the media.

Thrugelmir

michaels wrote: »

could not be relied on to do what is required in order to service bonds.

There was no decision. There is no plan. No reform.

StevieJ

Thrugelmir wrote: »

Makes a change from the UK as a whole must borrow and spend more reports in the media.

I have not actually seen any of them, got any links?

ILW

StevieJ wrote: »

I have not actually seen any of them, got any links?

Just find any quote from a public sector union official.

Thrugelmir

StevieJ wrote: »

I have not actually seen any of them, got any links?

Listen to the business news in particular. Plenty of radio coverage. My comment was made on a far wider context than a political one. Seems as if debt is the only way that people know now as a way to grow a business. Rather than the old fashioned way of reinvesting profit to grow organically. Slower but far more stable.

CLAPTON

I believe dave and george are cooking up a scheme to lend money directly to SMEs; presumbly they will borrow the money themselves first

michaels

Thrugelmir wrote: »

Listen to the business news in particular. Plenty of radio coverage. My comment was made on a far wider context than a political one. Seems as if debt is the only way that people know now as a way to grow a business. Rather than the old fashioned way of reinvesting profit to grow organically. Slower but far more stable.

I thought a big part of the story is that some business are making lots of money but can not see anywhere profitable to invest going forward, similarly lending is not only low because the banks don't want to lend, it is also the case that given generally pessimistic economic forecasts business do not want to borrow.

CLAPTON wrote: »

I believe dave and george are cooking up a scheme to lend money directly to SMEs; presumbly they will borrow the money themselves first

See the debt stats thread - consumer debt is increasing by £1.80 per person day (or not at all in real terms) whereas the govt is borrowing £18 for every citizen every day.

Thrugelmir

[QUOTE=michaels;47415539 it is also the case that given generally pessimistic economic forecasts business do not want to borrow.

[/QUOTE]

I've never known an SME base a borrowing decision on an economic forecast. Far too removed from daily business life to have an impact..

pqrdef

RenovationMan wrote: »

The government's economic policies over the past year have made it the envy of the free world.

Well we seem to have managed to propagate the illusion that we've got policies.

It has to be said that a minority government and the continual threat of an election would have made a big difference. So maybe we should thank Clegg.

The fact remains that Osborne is only riding the wave of good luck handed to him on a plate by everybody else's incompetence. Our deficit reduction plan is still only a plan and our growth forecasts are mere fantasy. We aren't fundamentally in a good position to face the sort of test that would be presented by a fall in sterling or an oil price hike, and the best plan we've got is just to hope nothing happens.