Saturday, February 20, 2010

The Gorgon trap

UK retail sales volumes fell 1.8% in January. The fall was more than three times worse than analysts had predicted. Cornflake economists got it wrong? No way…

This at the same time as the number of people claiming unemployment benefit has hit its highest level since 1997 and there are now a total of 8 million economically inactive people of working age – the highest number on record.

Add to this the news that for the first time ever a UK government needed to borrow money in January with an overdrawn by £4.339 billion last, compared with a surplus of £5.3 billion in January last year, and way short of the £2.8 billion surplus that cornflake economists had expected. Wrong again? Oh no, how can that be..?

About a month ago I said that the signs were pointing to an all-out collapse within a year (although I've argued for Mars/April 2010 for many years), these numbers seem to point to an earlier date, at least for UK.

If we also check private debt numbers, which are at an all time high, and take a look at the housing market UK cannot be more than a couple of bad company reports away from crashing and burning.

As mentioned before the flickering madman and his gorgonites have utterly destroyed Britain and will go down in human history as one of the worst governments ever seen.

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