Bank of England admits UK showing signs of depression
For the first time the Bank of England is now openly discussing the fact that the UK economy is showing worrying signs of moving towards a depression by highlighting the issue in one of it's regular reports. There is also the fact that a deflationary situation is developing which would see prices fall month by month while household debt in the UK continues to rise month by month. Commonly known as the debt deflation trap this is a stark reminder of the 1930s depression which annihilated the worldwide economy.
While Gordon Brown still refuses to apologise for any part he may have played in the ongoing economic slowdown in UK it appears that the Bank of England is more than willing to give a more balanced view of the current economic environment and the direction of the economy in the future. This is yet again in stark contrast to the official line being maintained that the UK government with Gordon Brown and Alistair Darling adamant that their array of rescue plans and financial stimulus packages will work in due course.
Quite how the Bank of England will respond to its own suggestion that a depression could be round the corner remains to be seen but there is no doubt we are now at the "business end" of the task of saving the UK economy.
Share this..
Related stories
Pawnbrokers benefit from increased price of gold
While the price of gold continues to move higher and higher, as many investors look for alternative arrangements to protect their funds, pawnbrokers have benefited enormously over the last two years. A quick glimpse at TV in the UK will show a mass of new gold exchange adverts offering cash for your jewellery at a moment's notice. So how long can this continue?
Even though there had...
Bank Of England Faces A 3 Way Tug Of War
News that the Monetary Policy Committee (MPC) is likely to see a 3 way split at the next meeting to set interest rates brings the current economic environment into focus.
On one side we have those who feel that inflation needs to be controlled and rates increased to stem spending in the UK. This is by far the least preferred option in the City but one which still demands consider...
Gordon Brown says sorry, well almost!
While Gordon Brown has been under intense pressure to admit to his part in the ongoing economic downturn in UK he has so far refused to apologise. However, today he took one step closer towards a full apology by suggesting that he takes full responsibility for his failure to spot the potential for a banking crisis over a decade ago. So what exactly is Gordon Brown talking about?
Yet...
What has gone wrong between the Bank of England and the UK government?
As the Bank of England and the UK government continue to sing from very different hymn sheets there are serious concerns in the UK financial markets that all is not well. Cracks started to appear just a few days ago at the Mansion House speech when the UK government took the opportunity to announce a number of significant changes to the UK regulatory system. These changes appear to have been cryst...
Read MorePost Office beefs up mortgage operation
The Post Office has introduced a total revamp of its mortgage operation which has seen the introduction of a base rate tracker, two and three-year fixed-rate deals and a five-year mortgage agreement which has topped the best buy league. The five-year deal is fixed at 5.09% although it only offers 60% loan to value and comes with a rather hefty £599 arrangement fee.
At a time when t...