Wednesday, January 21, 2009

All Used Up

Several weeks ago one source I know, suggested that the falling pound might hit $1.25 but this now appears a trifle optimistic with predictions now surrounding £1 = $1 =1EU - what's now being described as 'Triple parity.'

In today's papers, Jim Rogers, former partner of George Soros and something of an investment guru in his own right, has again been sounding off about sterling and the UK economy, which he believes essentially finished. "Sell sterling", he says. "Sell all UK assets. The country is bankrupt. North Sea oil is all used up, and the financial services industry is now gone too. The country has nothing left to sell."

This is a pretty gloomy assessment by anyone's standards and a worrying one too. If he's even partly correct, then the impact will be felt by the great majority of people in this country and by the poorest most of all.

We are a society that has become dependent on a generous public sector which in areas such as Thanet which employs a substantial proportion of the population, both directly and indirectly. Left to a policy of 'Quantitative easing' printing money to you and me, we are faced with a stark reminder of post-war Britain in the late 1940s.

As the political opposition points out to Government, we've spent all that we should have saved and a great deal of this has been wasted on multi billion pound IT failures, wild new projects such as 'eco-towns' and many thousands of Guardian newspaper-advertised highly paid and unproductive public sector jobs. Today, Government worries that it will soon no longer be able to meet its public sector pension commitments either!

So when people start telling me that local councils should start spending more money, I ask them where they think the money will be coming from in a future and an economy where perhaps only Standard Chartered and HSBC remain as the sole survivors of Britain's great  banking collapse of 2009.?

1 comment:

Michael Child said...

The £ now is at 1.06415 EUR and 1.37665 USD here in Thanet our local council needs to looking at adopting strategies to take advantage of the recession and the exchange rate.

The two most obvious areas to concentrate on here is that the weak pound means our prices are going to very attractive to foreigners and the two large development sites Dreamland and Pleasurama.

In the case of Dreamland it appears that any development here will be delayed by the recession, it is imperative that the developer is mad to realise that leaving this site empty is the main contributor to the death of Margate.

Temporary leisure use needs to be organised now ready for the summer otherwise when the recession ends there will be no leisure and commercial framework to develop in.

In Ramsgate with the Pleasurama site if the development is to be phased it is important that the part of the site not being used for this summer is made available for leisure.