Sorry, been busy. This is taken from last weeks “The Economist”. Not my words, but those who probably have more time and insight to comment. Thanks.

Economic woes
Fighting on two fronts

The central bank now thinks that the slowdown will be deeper and more protracted than it anticipated in November. The pace of economic growth, which was over 3% last year, will decelerate to 1.6% by late 2008. Worryingly, the risks to this central projection, which is based on the further interest-rate cuts assumed by the markets, “lie to the downside”. The wrenching slowdown could well encompass a technical recession, defined as two consecutive quarters in which GDP falls.

If even half of the greatly exaggerated doom and gloom predictions don’t materialise by the end of the year (including Osbourn’s absurd over-the-top reaction to Northern Rock), it might – just might – look like You-know-who’s “dithering” turns out to be careful, thoughtful management of the British economy in difficult world-wide conditions.

There is little sign of substantial alternative policies being offered by the opposition – but mainly abuse and scare stories. Admittedly any opposition would do their best to capitalise on a government problems. But they need to be careful that, in the longer term, they are seen to have something to back up their claim to greater competence… Just in case the British economy should turn out to have performed well, compared with our friends and neighbours in the US and Euro-zone.

In it one contributor (no guesses who) said that a recession was currently unlikely, but beware forecasts of a growth-rate of 1.6% for 2008. It appears that the Bank of England is now forecasting such!

Will the economy follow America into recession? With excessive public-spending, the government has failed to save for the possibility of such a rainy day.

2008 should be a bad year for nEU-Labour. Their only hope: an election system that does not meet European standards…!