Autumn Statement: A political chancellor’s delusional plan – Martin Wolf – FT.com

This is a good article from Martin Wolf, the FT‘s chief economic commentator. Check it out!

via Autumn Statement: A political chancellor’s delusional plan – FT.com.

This is a very hard-hitting article which reminds us that George Osborne has always been light on economics and long in his political agendas.

Wolf has surgically dissected Osborne’s record and takes a dim view of his proposals for the future. Most critically, he also recognizes that the Labour Party does not have credible plans for effective economic management.

Personally, I expect political shock treatment in the UK whichever party returns to power.

The critical question for me is:

What’s the risk of the UK facing a major economic slump in the next five years, following a geo-political crisis?

Thoughts?

One response

  1. Dr Alf’s prognosis of economic shock treatment may well be correct but the UK has to be judged not just on the official figures but what must be its other set of books.
    Since 1981 the UK has had a balance of payments deficit yet for almost 30 years it managed to keep its AAA credit rating which it then lost in 2012 when it was downgraded.
    The gap used to be made up with “invisible exports” from the City of London but in 2012 we were overtaken by New York with Hong Kong and Singapore set to overtake New York by 2016,barely a year away.
    No politician seems worried so I wonder whether somewhere offshore there isn’t a secret hoard of gold bullion or cash which the Government has access to representing perhaps monies made from arms deals and the like invested into overseas economies and then returned to build the secret cash pile?
    The on the books figures look dire but do not on reflection tell the whole story.

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