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Britain could be in worst economic crisis ever

Says Mervyn King.
Britain could be in the grip of the "most serious financial crisis ever", the governor of the Bank of England has exclusively told Sky News.

Sir Mervyn King said the global and UK economies had been turned on their heads in the past three months alone and said: "The world has changed."
He said: "We're creating money because there's not enough money in the economy.

"That may seem unfamiliar to people... but that's because this is the most serious financial crisis at least since the 1930s if not ever.

"We're having to deal with very unusual circumstances but react calmly to this and do the right thing."

He said that for many decades there had been "too much" money printed, which had led to inflation being pushed up.

"That has been the major challenge for most of the post-war period. Since the world financial crisis we are now facing the opposite crisis - there's not enough.

"It happened in the 1930s and it's happening now. The amount of money in our economy fell in the last year. That's why we're creating money... to ensure the economy can keep growing."
He's also consided inflation is likely to rise above 5% in the coming months.

Stark words though, suggesting we could be in a worse position than the 1930's.

http://news.sky.com/home/business/article/16084156
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Comments

  • Dan:_4
    Dan:_4 Posts: 3,795 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    dam it. I was hoping for an increase in interest rates.
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Dan: wrote: »
    dam it. I was hoping for an increase in interest rates.

    Is that it?

    Worst economic crisis ever stated by Mervyn King, and that response is the most you can make of the discussion?
  • ess0two
    ess0two Posts: 3,606 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 6 October 2011 at 6:22PM
    Is that it?

    Worst economic crisis ever stated by Mervyn King, and that response is the most you can make of the discussion?


    Lighten up,what can you do or the average bloke in the street do about it,f++k all.

    Just let it ride out.
    Official MR B fan club,dont go............................
  • Dan:_4
    Dan:_4 Posts: 3,795 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Is that it?

    Worst economic crisis ever stated by Mervyn King, and that response is the most you can make of the discussion?

    well what the f**k do you want me to say? 'oh no we're all doomed'?
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic

    Worst economic crisis ever stated by Mervyn King, and that response is the most you can make of the discussion?

    That's the downside of the Nanny state. Someone else's problem to resolve.
  • JonnyBravo
    JonnyBravo Posts: 4,103 Forumite
    Mortgage-free Glee!
    Like I suggested GD, it's just possible the vast majority of us will all just sort of muddle through. No doubt with varying amounts of discomfort but overall it might just be ok.
    Not going to worry about it.
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Dan: wrote: »
    well what the f**k do you want me to say? 'oh no we're all doomed'?

    This is my fault, I obviously set my expectations far too highly!
  • pqrdef
    pqrdef Posts: 4,552 Forumite
    "It'll all be over in 6 months" - G Brown
    "It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis
  • MacMickster
    MacMickster Posts: 3,648 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Well I agree with Merv that the world has changed, but I can't see that printing a bit more paper money is likely to change it back.

    In the west we have been living lifestyles above our collective means, based on both personal and national debt. Now is the time to get used to a new reality where we have to not only live within our means but repay those debts. In other words a reality check, rather than the worst crisis ever.
    "When the people fear the government there is tyranny, when the government fears the people there is liberty." - Thomas Jefferson
  • ruggedtoast
    ruggedtoast Posts: 9,819 Forumite
    What do you want Devon. What's your manifesto?
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