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Archive for the ‘UK economy’ Category

Egan-Jones downgrades UK to A+ from AA-

Posted by seumasach on March 29, 2013

Nasdaq

27th March, 2013

FXstreet.com (San Francisco) – Egan-Jones, the independent agency, has decided to cut down its United Kingdom sovereign debt rating from AA- to A+.

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UK: a balance of payments crisis looms

Posted by seumasach on March 28, 2013

Britain resembles Cyprus in many ways. It is also dependent on its financial sector and its financial sector is also bankrupt and as what’s left of the real economy implodes the accumulation of bad debt accelerates. The solution is also similar: write down most of the debt and renegotiate Britain’s international status with a view to rebuilding the real economy through incoming investment.

Fasten your seat belts – a balance of payments crisis looms

Jeremy Warner

Telegraph

27th March, 2013

Whatever happened to the holy grail of a more balanced UK economy? Britain has been living substantially beyond its means for more than thirty years now. Spending more than we earn long pre-dated the Labour years. And it’s getting worse, not better.

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Euroland breaks definitively with QE

Posted by seumasach on March 26, 2013

It’s either the banks or the real economy and Europe has just outlined a new approach completely divergent from that of the Anglosphere. In US/UK the survival of the banks is a categorical imperative and the means to achieve this is bailout without end via QE or money-printing. This statement from Europe signals that the banks are to allowed to go under or rather, implicitly,  a new banking system, Euroland regulated and subordinate to general economic development is to created. This is a welcome development and any Anglo-Saxon schadenfreude regarding the inevitable pain accompanying it will prove to be misplaced. The QE approach is painless only to the banks: it has already seriously depleted deposits and can only lead to falls in both the pound and the dollar with devastating consequences for economies based on importing essential goods.

Cyprus bail-out: savers will be raided to save euro in future crises, says eurozone chief

Telegraph

25th March, 2013

The new policy will alarm hundreds of thousands of British expatriates who live and have transferred their savings, proceeds from house sales and other assets to eurozone bank accounts in countries such as France, Spain and Italy.

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Bank of England warns QE could hit sterling

Posted by seumasach on March 20, 2013

Telegraph

20th March, 2013

Bank of England policymakers have warned that more quantitative easing could lead to “an unwarranted depreciation of sterling” if markets interpreted the move as evidence that the central bank was abandoning its commitment to low inflation.

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Ignore their howls of protest

Posted by seumasach on March 6, 2013

If bankers leave the country, it would be no loss

Simon Jenkins

Guardian

6th March, 2013

The peasants are revolting across Europe. They want bankers’ blood and mean to get it. Until now, public response to the credit crunch has been one of general bafflement and wrist-slapping. The banks persuaded the world it was all an act of fate. As it was, they were too big to fail and their leaders too saintly to atone for it. For four years, British banks were showered with nearly half a trillion pounds of public and printed money. They duly recovered and stayed rich, while everyone else went poor.

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Negative interest rates – a ruse to ease QE fears?

Posted by seumasach on March 4, 2013

“While American QE has so far amounted to 14pc of annual GDP, with the eurozone’s at 4pc, the Bank of England has made asset purchases (overwhelmingly gilts) out of money created ex nihilo to the tune of 26pc of our national income”.

Liam Halligan

Telegraph

2nd March, 2013

‘I’m sorry Liam, we’re losing you,” said John Humphrys on BBC Radio 4’s Today programme last week. “Oh what a shame, we can’t hear him,” the grand inquisitor continued. “It’s a very bad line.”

Explaining the implications of “negative interest rates” on the UK’s most influential news bulletin is tough at the best of times. Doing so when the communication link between you and the studio drops out, making you incommunicado 15 seconds after you’ve started speaking, makes the task more difficult still

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Is Europe tearing apart the City?

Posted by seumasach on March 3, 2013

We will fight them on the beaches, we will protect our “banking talent” and continue to bail them out, we will oppose outrageous tax impositions and FTT— we will never surrender!

Telegraph

2nd March, 2013

As the British are often first to point out, Europe is responsible for some pretty odd rules. Brussels has banned bendy bananas, said water can’t be promoted as a rehydration product and even outlawed marketing prunes for the “maintenance of normal bowel function”.

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UK defeated as EU agrees to cap bankers’ bonuses

Posted by seumasach on February 28, 2013

UK has been battling to stop the Basel III accord on capital requirements, fearing the impact on the City of London as the EU’s leading financial capital.

City of London interests- that’s what our anti-European stance is really about

Independent

28th February, 2013

European Union chiefs have agreed a package of financial laws that includes capping bankers’ bonuses at a maximum of one year’s basic salary.

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RBS losses breach £5bn

Posted by seumasach on February 28, 2013

Asked on ITV Daybreak if the taxpayer would ever get back its money, RBS chairman Sir Philip Hampton said: “I don’t know. We’ll do our best”.

I know. The answer is no.

RBS boss admits ‘chastening’ year as losses breach £5bn

Guardian 

28th February, 2013

Stephen Hester, the boss of Royal Bank of Scotland, admitted 2012 had been a “chastening” year as losses at the bailed-out bank widened to more than £5bn – and still paid out more than £600m in bonuses.

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Global banks shun UK Gilts on ‘stagflation’ risk

Posted by seumasach on February 24, 2013

Ambrose Evans-Pritchard

Telegraph

“Systematically forecasting a disinflation that never materialises has exposed the bank to ridicule,” said Nomura, Japan’s biggest lender and a conduit for Asian investors.

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RBS plans cuts to investment bank in push to stem losses

Posted by seumasach on February 24, 2013

The bankrupt banks continue to be a drain on the UK economy- bailout time is approaching. Any further bailout, overt or covert, must be resisted and the only other alternative, bankruptcy proceedings effected

Telegraph

24th February, 2013

The Royal Bank of Scotland is to reduce the size of its investment bank by as much as £30bn and cut hundreds more jobs as the taxpayer-backed lender attempts to head off growing government pressure to close down the controversial division.

The lender will announce that it will reduce the size of the investment bank’s balance sheet, as well as scaling back the amount of capital allocated to the business and continuing its redundancy programme.

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