Wednesday, July 08, 2009

The fragile "recovery"

Over the last few weeks there have been a number of reports suggesting that the worst of the recession is over and we are on the road to recovery. As I am sure you are aware, this is not my view and represents - in my opinion - an almost desperate clutching at straws.

Our own Prime Minister is set to confirm my views today as he addresses world leaders.

Gordon Brown will today warn international leaders that sharp and unpredictable rises in oil prices risk "choking off" the global economy and pushing the world into a second recession.

A second recession? We haven't got over the first "recession" yet! But here is the clincher ...

At the Group of Eight summit in Italy, the Prime Minister will sound a pessimistic note about the economic outlook and suggest the limited recovery now under way is weaker than had been hoped.

Weaker than hoped - things are so bad even Gordo is pessimistic about the future. I'm afraid that says it all. Despite the billions spent - trillions worldwide - the "recovery" is, at best and if it exists at all, weak. Our economy is in a dire state and unlikely to be able to cope with a second wave of recessionary pressure. The cupboard is bare, the tank is empty and the reserves all gone. There isn't anything left except more and more debt.

Depression looms large, people - and with that will come a spectacular fall in the living standards and wages we have gotten used to. This is not going to be pretty.

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