Recession From The Art Of Business War

In her infinite wisdom Kate Barker, a member of the Bank's Monetary Policy Committee (MPC), gave a stark warning at a speech to businesses in south London. She intimated the UK's current recession is "very likely" to be worse than that of the early 1990s.

Hi de hi, so Kate is finally informing the nation what hundreds of thousands of unemployed workers have known for some time.

She then informed anyone who would listen, that it would "not be easy" to boost confidence but said the Bank was working to "limit the social and economic costs" of the recession. Given that economists world-wide have blamed much of the recession on the banks, its mighty white of them to be trying to find a solution.

Between mid 1990 and 1991 the UK economy shrank by 2.5% and given the loss of output during this recession is now predicted to exceed that of the early 1990’s the future looks far from rosy.

Adding that comparisons with the previous recession were not terribly helpful, the bank launched plans to pour £75 billion in newly created money into the economy under what’s known as quantitative easing (QE) – known to us lesser mortals as printing money. This rides on the back of cutting rates to 0.5% which has affected both banks and savers.

I guess it brings new meaning to the phrase, ‘a licence to print money.’

Business Consultancy Advice
Business Consultancy Advice