Monday, June 07, 2010

The storm is brewing

David Cameron is expected to announce that the scale of Britain's economic crisis is worse than expected and that Britain faces cuts, austerity measures and tax rises which will effect the country for decades.

OK, maybe he won't mention the tax rises, but they're coming. My point is, though, that my claim that this "recession" - far from being nearly over - was merely the precursor to the deep depression that is going to effect our nation for the next ten years or so.

While all this is going on we will be expected to stump up more and more to assist the other EU nations who are going through the same problems - including those eurozone members - and this will probably mean the end of what is left of the rebate.

This deep depression is going to effect most of the developed world, but the nations that will fare best will be those who retained their manufacturing and production capability and who have the sense to protect it - Germany and Japan for example. The nations that will struggle most will be those who rely on imports the most and make the least effort to protect their industries - and that, I'm afraid, means Britain.

Further still, until we wise up to the basic fact that a service industry needs a strong manufacturing base to service then we will continue to struggle - and as we can not compete on level terms with developing nations that means using protectionism.

There is no alternative - we have a choice now between protectionism or a completely failed economy for decades. It's not a hard choice is it?


Richard Matthews said...

Both the Mail and the Telegraph claim that there now exists a school of thought, which says that the Euro currency will have broken up within the next five years. Fingers crossed...

I have a friend who refers to the service industry as the 'bullshit economy' because it doesn't actually create any wealth for the country.

bernard said...

Undoubtedly true.

What the past government was pinning its hopes on was the UK's pre-eminence in being the worlds leading centre for finance, even if the manufacturing sector declined.
Now that has been shot to pieces as well. And there even serious moves to usurp what vestigial influence it has left, to somewhere else.

RM -

Just a thought:
Surely, "school of thought" would 'think' something, not say it?....