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Chancellor George Osborne and the outgoing head of the Bank of England, Sir Mervyn King, will hail the abolition of the Financial Services Authority, the watchdog set up by Gordon Brown in 1997. The Bank is once again taking sole charge of regulating lenders and protecting and enhancing financial stability. But the watchdog failed to prevent [...] from FT: Chancellors of the exchequer typically assume an air of omniscience unbecoming in mere mortals. By doing so, they can assume their fiscal problems away. It was a strategy pursued with some considerable success by Gordon Brown before things went rather horribly wrong. Mr Osborne is in danger of following the same well-trodden path. Read more Osborne warned his slow economic growth could mean another SIX years of cuts and VAT rising to 25% Institute for Fiscal Studies delivers alarming assessment of the Chancellor’s economic plan
The era of austerity could [...] Borrowing costs will rise if the Government pushes ahead with plans to give savers more protection against bank failures, the Chancellor has been told. Bankers have warned George Osborne they will be pressured by bondholders and other corporate borrowers to increase rates to compensate for losing ground in the compensation pecking order. Mr Osborne believes the banking claims are exaggerated. He is expected to release details of the better deal for savers [...] George Osborne pushed on growth as OECD says ‘loosen purse strings’ The Government should consider borrowing more to pay for vital infrastructure projects in an attempt to stimulate growth, according to the Organisation for Economic Co-operation & Development’s UK specialist. The think tank said the Chancellor could let his debt-reduction target slip a year without suffering a backlash in the bond markets. The comments, from Christophe André, acting head of the OECD’s UK [...] From FT: The most controversial announcement in Chancellor George Osborne’s budget was the cut in the top rate of income tax from 50 per cent to 45 per cent from next year. Most of the opposition party’s response was directed toward this single measure, although it accounted for a mere £50m of estimated lost revenue in its first year. Mr Osborne must have calculated that the economic gain would outweigh the [...] The Government ‘has run out of money’ and cannot afford debt-fuelled tax cuts or extra spending, George Osborne has admitted. From Telegraph: In a stark warning ahead of next month’s Budget, the Chancellor said there was little the Coalition could do to stimulate the economy. Mr Osborne made it clear that due to the parlous state of the public finances the best hope for economic growth was to encourage businesses to flourish and [...] The UK Treasury has announced plans to make London the leading international centre for trading China’s currency, the yuan, also known as the renminbi. “London is perfectly placed to act as a gateway for Asian banking and investment in Europe,” said UK Chancellor George Osborne. Bankers say the plans could bring billions of pounds into the City. China has been gradually relaxing strict controls on the value of its currency and on flows [...] Andreas Whittam Smith When Poland’s Foreign Minister refers to German tanks and Russian missiles, as Radoslaw Sikorski did on Monday, one sits up. Poland suffered repeated invasions by Germany and Russia from the late 18th century until the last Soviet troops withdrew in 1993. Poland was truly independent only between 1918 and 1939. However, in a remarkable speech, by turns passionate and frank, Mr Sikorski was not breathing [...] 710,000 UK public service workers to lose their jobs: Households will experience effective pay cuts until 2014, with higher-rate taxpayers losing five per cent of their income due to the Government’s austerity measures, official forecasts showed. This year will have seen the worst squeeze on living standards since the Second World War and the turmoil caused by the eurozone crisis means that conditions could get even worse, the Chancellor said. In his annual [...] BBC Business Editor says the bailout of Greece has just failed: UK Chancellor George Osborne has said the eurozone debt crisis is a “real danger” to all of Europe as a summit in Brussels continued. All of Europe’s finance ministers are meeting to try to find a solution to the bloc’s ongoing economic problems. The eurozone has already approved the next tranche of Greek bailout loans, potentially saving the country from a [...] The IMF yesterday gave broad support for the Chancellor’s plans to reduce the government deficit by cutting public spending and insisted that there was no need to change course at the moment. The global economic watchdog said the economy remained on track for a “moderate” recovery where interest rates remain low and inflation finally starts to ease next year. But after its experts [...] In the U.S. the debate over how to cut the long-term budget deficit is just getting under way. But in Britain, one year into its own controversial austerity program to plug a gaping fiscal hole, the future is now. And for the moment, the early returns are less than promising. Retail sales plunged 3.5 percent in March, the sharpest monthly downturn in Britain in 15 years. And [...] Mr Osborne will unveil on Tuesday what is expected to be the harshest set of economic measures seen in decades in a bid to tackle the UK’s record deficit. Labour said the Government’s determination to go ”further and faster” with austerity measures was ”profoundly misguided” and would ”crush” the fragile recovery. http://www.telegraph.co.uk/finance/financetopics/budget/7841626/George-Osborne-Britain-will-be-on-road-to-ruin-without-spending-cuts.html European country after country,(already in Greece, Spain, Portugal, Ireland, France, UK, Romania and many more including Italy and Germany, lined up ready for austerity) as their sovereign debts hit their debt limits and many way beyond with real risk of sovereign defaults, even multiple defaults, now abandon in desperation the warped version of Keynes philosophy, the Bailout culture and country after country introduce the new age of austerity: http://www.telegraph.co.uk/finance/comment/jeremy-warner/7760876/Austerity-is-the-new-cool-as-Europe-turns-its-back-on-Keynes.html Au revoir [...] |
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