UK Debt - Coalition Government

Guardian: Reports that UK Government borrowing hit its highest for August at 15.9 Billion pounds. Folks only yesterday the IMF forecasted that the UK would economy would only grow at 1.1% down from 1.5%. The Eurozone crisis could lead to the Banks needing another bailout, if France and German Banks need bailouts this will place the debt on the taxpayers of France and Germany. Thus it can be argued that economic growth will be mild to zero within the EU, due to the need for tough austerity packages, the good days are over folks, get used to being cold.

IMF and Bank Bailouts for 2011

Telegraph Live: Reports that the IMF has estimated that the Eurozone Crisis could lead to another bank bailout in the range of three hundred billion Euros. Folks in £ terms that is around one hundred and fifty billion, the UK Governments deficit. If Zombie Greece does go to the wall the French and German Banks will need to be bailed out by the their Governments. Thus more debt lifted from the banks to the State, thus more taxes folks and austerity down the line, even for Germany. Also folks its an estimate, it could be a lot worse folks, what are the banks not telling us about their Greek debt, and if these banks are hit what effect will this have on banks in the UK and US.

More Cuts - Greece

BBC News: Reports that the Greek Government will extend its public spending cuts as to gain the next stage of the bailout form the EU/IMF/ECB. Folks the EU/IMF/ ECB have not been impressed with the cuts by the Greek Government over the past two years, what is going to change, will the announced cuts even actually happen, can the Greeks pay the new taxes, will they refuse to pay even if they have the money. The expected pay cuts in the public sector, immediate sacking of fifty thousand public sector workers, and another one hundred thousand sacking over five years will hit the Greek economy hard, people will be pushed on welfare, thus more Government spending, thus higher Greek Debt, it’s a nasty loop folks, one can postulate that Greece will crash and burn, it depends who they take with them when they crash.

Afghanistan Front News

MOD: Has announced the name of the UK Soldier that was killed on Monday in the Afghanistan, the Soldier was “ Marine David Fairbrother, Kilo Company, 42 Commando Royal Marines ”. Our thoughts are with the family of Marine Fairbrother.
　

1.1% GROWTH in the UK - Forecast

Guardian Live: Reports that the IMF has cut its growth forecast for the UK, from 1.5% down to 1.1%. The Coalition Government in the UK folks has to carry on with Plan A, of deep cuts in public spending, otherwise the UK is heading to join Greece and Italy. Also lets be clear these are forecasts, they can go up and down, it would be a disaster to change policy on a forecast, there will be pain folks, people will lose their jobs, the welfare state will reduce in size, but at the end of the day the UK will keep its triple A credit rating, unlike the US under President Obama. Its going to be tough folks, higher prizes and lower wages, but that’s the price the UK has to pay for the follow of New Labour.

1st Greece, 2nd Italy , 3rd Spain - Eurozone Crisis

Telegraph Live: Reports that the costs of Spain borrowing on bond markets have hit a three year high. Thus last week the Spanish Government went with a tax hike for the rich, now the costs of borrowing on the markets have hit a three year high, lets be honest here folks, the PIIGS are a basket case, it will need trillions to bail them out, the question is who will pay, the German voter is sending a clear message to the Coalition German Government, they are voting for the left wing Opposition Party, thus a clear message to Berlin. Either all EU Counties and that includes the UK put some money in to a giant money pot to bail out the PIIGS or the Euro will fall apart under its own pressure. God knows what the Markets are smoking, they are up, what does it take a Great Depression 2.

Italy DOWNGRADE = Eurozone

BBC News: Reports on the cut in the credit rating of Italy by the credit agency S & P. This was a surprise development folks, it had been rumoured that another credit agency Moody’s would downgrade the Italian worthiness, it can be postulated that Moody’s will follow the S&P line when it comes to Italy, the agencies on the whole tend to sing from the same page. The Markets have not taken a fall with this news, that is quite a surprise, either they know something we don’t or they have blind faith that something will turn up to save Greece and Italy. The latest news on Greece is that the EU,IMF and the European Central Bank is having further talks with the Greece, it could be that the want to trust Greece as not to would mean a major crisis for the Euro and the EU. But blind faith can only take you so far folks, if there is no substance you are in free fall.