How stable is Britains' economy in reality?

Question

We hear plenty of recycled tripe from the Chancellor and company, but it can't all be roses can it?

Answer 1

People have been saying that our economy is on the rocks for years,it's because they got used to successive economic depressions while the conservatives were in power.John Major said "if it's not hurting it's not working"after 12 years of government, that was their policy, to hurt people.Four million unemployed,record repossessions,wildly fluctuating interest rates that was their legacy to the British people.

Answer 2

The British economy and that of most Western countries is based on a lie. Take a look at a five pound note. It says "I promise to pay". Take it to the Bank of England and ask for the five pounds it promises - they haven't got it!

The whole economy is based upon the fact that people have confidence in it. If there's a loss of confidence, the economy will collapse. Speeches from the Chancellor might sound like drivel, but they are a necessary part of keeping up the pretence.

Answer 3

the British economy is pretty stable.....
however the Chancellor and his fan club are being dishonest (theres a first)

the stablity is in the collapse (shrinkage) of the economy

the net defecit is widening dramatically, and will continue to do so especailly as there are fewer goods & services exported and more imported. I think the net defceit is around 6..7 billion a year, of which around 5 billion is acccounted for by our so called EU 'partners'

it doesnt help that Britain is now a net importer of hydrocarbons (especailly just at the time when oil prices have risen

the chancellor has built in significant debts that we will have to pay int he medium to long term (all those increases in expenditure have to be funded from somewhere). things like PFI, employment of civili servants. I dont think anyone would disagree with the headline (spend more on Health & Education) however the actual expenditure is not targetted at improoving services, its jsut spent, in the vague hope that some of the expenditure will lead to improovements, let alone the expenditure on pet projects such as IT which seesm to be a perennial failure)

the medium term future is alos blighted by the state pensions debacle... pensions for government (national & local) employees these pensions liabilities are substantial and unfunded... thats the real pensions scandal, not private company pensions.

Answer 4

The whole of the western world's economies are like a house of cards - they are totally unstable and liable to collapse - totally collapse - at any time.

We totally rely on shares having value. If the stock market crashes, the whole economy goes with it.

There are many scenarios that would cause such a crash. The dot com failure was just a small example, but why, for instance, are Vodafone shares worth £1.50? Because people are willing to pay that for them. Take away that willingness and they are worth nothing. Take that willingness from ALL shares and the economy collapses.

It would take something unbelievably dire to cause it to happen, but that fear is always there.