The government has announced a bold move to buy upto £50bn worth of shares in major UK banks. The cost will be borne by the UK taxpayer and averages at around £2,000 per UK taxpayer. £50bn is a huge sum for the treasury when you consider the annual NHS budget for 07/08 was £89bn. The …
The House of Representatives voted against the initial $700bn bailout. Though some bailout is likely to go through in a different form. The Problem with the bailout was: Buying worthless assets, won’t solve the causes of the credit crunch. It won’t solve the problem of home repossessions, falling house prices and the fact banks have …
In response to an essay on – Is a Dollar collapse likely? These are some readers questions “US debt is high, but so is European debt”. Could you perhaps elaborate on that or point me to articles that discuss European debt? National debt in EU countries is a real problem. Countries like Italy already have …
After several years of rapid growth, 2009, will prove a testing year for India. Inflation Inflation continues to pose a threat. Inflation peaked at 12% in early August ’08. Inflation, is being caused by rapid growth (demand pull factors) but, also the cost push inflation factors (rising oil prices). Hopefully, the fall in oil prices …
Readers Question: Do you have any predictions for the AUS$ against the GBP in 2009? Thanks Both, the Australian and UK economy faces a year of uncertainty and sluggish growth. It is really a question of which will be weakest. However, I think the Australian economy and currency will be hit harder than many in …
Readers Question: Why are future debt commitments, pensions, PFI repayments, Northern Rock, et al, not part of the National Debt? The treasury must do cash flow projections (?) to calculate how much income it needs. Don’t these factor into the calculations? It is a good question. A while back, The Institute of Fiscal studies produced …
USA’s trade deficit with China was $201.6 billion in 2005, an all-time high for a trade deficit with any country. Explain some possible causes of a balance of trade deficit and consider if the USA should be concerned over its trade deficit with China. Reasons for Balance of Trade Deficit Between US and China 1.Undervalued …
Readers Question: Discuss the Impact on Czech Economy of a decline in the Car Industry. The car industry plays an important role in GDP of Czech (16% of economy is Car industry) (19% of export revenue) and jobs. BTW: Skoda is the main car. A decline in the car industry would lead to lower exports …