Whilst the sheer scale of the drop has reached a floor, the bouts of optimism infecting the media whores has been tested to destruction. Weened on the teat of confidence, they know no other currency and boost growth as the panacea to their ills. I think not, as do wiser heads:
The National Institute of Economic and Social Research (NIESR) has calculated that GDP, which is a key measure of a country’s economic strength, dropped by 0.4 per cent in the three months to June, leading to the fifth consecutive quarter of economic decline.
Some analysts had predicted that GDP would stagnate or even rise slightly in the second quarter, but this is now looking increasingly unlikely.
Both manufacturing output and industrial production fell in May, contradicting the idiot consensus that sings Springtime for Britain and Brown. The debt overhang and the large public deficit show that priming the pumps of public expenditure is the only engine in town.
An unsustainable policy consensus will lead to crisis. Cutbacks to short-term stagnation. Whoever is mapping this new territory is not in government or the Bank of England..
