ECONOMICS ON THE DRIP.

We do hope that the UK as a whole understands that our existence is totally reliant upon borrowing, be it as a nation or individuals. This is a practice that has been encouraged for years by the current Labour regime and as inferred in previous articles is considered by them, to generate productivity. A perfect example of this has been the housing market, which is now falling flat on it's face. There has to be an adjustment in the market from the ridiculous to the logical, which hopefully we are now witnessing. This will hurt many people, but not as many as would be affected if the government avoids tinkering.



Early signs appeared a few years ago as personal borrowing started to spiral out of hand. The goverment loved this of course, being in receipt of the VAT from any credit card transaction (much more in the case of petrol purchase). The big 'plus' however was the ludicrous leap in the price of property, enabling the exchequer's tills to be ringing up stamp duty by many a shed load.

The early danger signs were begining to show over a year ago in the share price of Northern Rock. The market will always indicate where there is a weakness, a reasonable presumption would be to realise that the large financial institutions new that the bank was over stretched.

The Financial Services Authority however completely disregarded the situation, this being an organisation instituted by, you,ve guessed, our current PM., who had removed the Bank of England from the responsibility of overseeing such an occurence. We need to consider here the number of personnel employed' at the FAS, presumably doing very little, retiring at sixty on a good pension at our expense. Avoid being hoodwinked by Gordon Brown who continues to blame world market condititions for our woes, never our disgraceful incompetent money markets.



We can't ignore the lack of business acumen of our high street banks. they have acted, like the government, as a bunch of amateurs. Over recent years, having discussed the economy with bank employees, some at managment level, all considered Brown to be a good Chancellor. They couldn't understand how a former timber salesman new better. They of course were probably making good bonuses from this flooding of the market with non existent money. They certainly haven't been making it attractive to save. This could well be the nub of our problem. It's high time to get rid of the notion that we'll all live happily ever after on the back of cheap money which created the false housing boom. The nation won't acquire wealth by selling houses, it will only generate more debt. We have to work to create real wealth. Incidentally, the worker who produces this wealth is the true 'key worker', and foster to a saving environment, protected from a Chancellor who sees such things as a cash mountain to be raided. Brown's grabbing of pension funds was of course the initial move to our present problems. If we are to return to and make progress as a democracy, we have to consider reviewing political decisions and holding these perpetrators to account. Genuinely to make them fearful of such decisions. In addition let's also consider the duration any MP can serve along with a vast reduction in numbers and their 'hangers on'. Let's not just talk about this in the pub, let's take back control of our lives. (KEEP PAYING YOUR TAXES, IMMIGRATION DOESN'T COME CHEAPLY)