‘Stunning’ factory output propels pace of recovery, so reads a headline in a business newspaper.
News reports and Politicians alike all grasp at every and any straw to claim that Britain’s stagnating economy is on the mend. Without doubt there will be encouraging signs from time to time, but those signs do nothing to dispel the underlying fact, that our economy has planted within it the seeds of its own destruction. A history of financial crises is there for all to see, but for the blinkered view taken by politicians, economists and the like.
Economic growth flows from increased consumer spending, which unless funded out of savings, relies principally upon an increase in the level of overall debt. Savings once spent are no-longer there to fall back on, while increased debts today, serves only to mortgage tomorrows consumer spending, a spending level which can then only be maintained through more and more debt. A pattern that has in the past and will again inevitably lead to another financial crisis and the next recession.
Until that lesson is well and truly understood and fundamental changes made to how new money is created, then grasping at straws is all there will be for many more years to come.
We are already five years into this recession and predictions are still for many more years to come.
Today the 14th May, it is reported in the Daily Telegraph that British families are deeper in debt, than any other country. Our Banking sector is also said to have levels of debts exceeding that of any other country except Greece and Japan.
How can our nation’s economy possible recover when even more debt is the price that has to be paid for economic expansion?