Five types of Drachmail is ‘tearing the eurozone apart’
May 17, 2012 9:47 am 11 Comments
An unexpectedly fiery assessment of the UK economy by the governor of the Bank of England. First the good news.. almost all unemployment data heading in the right direction, bar long term unemployment. Claimant count, the unemployment rate and youth unemployment all down.
However the Bank of England’s quarterly health check of the economy saw forecast growth this year downgraded to 0.8 per cent as the Jubilee “special factors” look set to prolong the recession (King blames the Queen?). As bad, inflation was predicted to stay higher for longer, continuing to eat into Britain’s living standards into next year. Sir Mervyn blamed this on budget measures and hikes in gas prices.
The real problem? That even that mixed assessment depends on a benign outcome to euro-turmoil. As described by Sir Mervyn King: “our nearest trading partner, the eurozone, is tearing itself apart, with no obvious solution”.
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