As the Telegraph has its moment in the Sun this week and exposes the pure egregiousity (very American, like it?)of our Serving Members, a darker, longer story has temporarily faded into the background.The moats and non-existent mortgages are enough to get ones blood boiling. In fact the list of extra MP benefits; subsidised drinks, extra weeks paternity leave, platinum plated pensions, the list is endless. No doubt the rest of this week will be taken up with the first resignations like that of Andrew Mackay.
However, I think more sanguinely, this week has seen the end of the green shoots recovery:
- Property companies likes Land Securities see no upturn in business
- Manufacturing is still suffering an unprecedented downturn (see graph above)
- Unemployment is still increasing rapidly
- The Bank of England doesn't know what it is doing and has admitted as much by saying it has no idea whether inflation will rise or fall in the coming months.
- Bank shares have fallen back as the reality of the recession to come sinks in.
- The FTSE as a whole, very buoyant this past month, is on a big rest as the 'Sell in May and Go Away" tendency takes hold of the City.
- Food inflation continues unabated.
- The £ is falling again thanks to Quantitative Easing and Government debt requirements.
It is not a pretty picture. I would be surprised if we are half way through this recession. maybe the worst of the falls are over, but the downward trend is still well established. Anyone who thinks house prices, jobs etc are going to recover this year is living in a New Labour dreamworld.
Ans whilst the worst economic crisis of our lifetimes is going on? Our glorious leaders drink their subsidised beer and moan about getting caught stealing.
