Now Insurance Blogger always keeps a sceptic eye on things while the other one is open to all sorts of suggestion. Combine them both and you’ve got a third eye that can come to some sort of rational analysis of whatever the problem or situation is.
So what is really going on in the Economy?
And in particular in the UK Economy?
Are the cracks in the recession that are staring to appear around the globe genuine?
If so and to what amount of the recent Obama and Brown pump priming can we really attribute to the effect?
Moreover is it a tangible upswing in the Global Economy and genuine growth or are the latest figures just smoking mirrors, conveniently released PR for a week either side of the G (how many are there now) Lockdown London Economic crisis Summit.
OK so whats been happening?
The Zeitgeist seems prety upbeat with some recent strategically announced PR from some of the major UK Government owned Banking and Insurance institutions suggesting, that the downward spiral of deflationary pressures has finally bottomed out. Hmmm!
We need to examine some of these releases chronologically to see behind the mirrors!
Two weeks ago – late at night our time, CBS News New York post stories and report that the Obama insistence that the US financial institutions release bale-out capital for mortgages and housing is beginning to have some effect with construction projects starting up and the demand for houses and prices starting to rise.
Halifax – A week ago announcing UK housing prices are moving upward.
Today – Council of Mortgage lenders announce that there are more mortgage schemes available now and the number of live mortgage schemes has increased for the first time in eight months.
Insurance blogger is pleased but cautiously concerned!
Is this just cheesy Blair style PR that we are all supposed to buy into to go around saying how good life is at the moment and dip into our overdrawn accounts and start spending some more?
Well, until the restricted flow of the money supply starts to drip down to the masses and to those holding the system up with debt, one cannot possibly start to argue that the recent so callled ‘fiscal measures’ are having any effect at all other than to allow the banks to continue operating.
Until the lower level debt is released or absorbed into the reinflation that will eventually occur, there will be no stimulus to demand and pump priming will become just pumping – lets hope its enough to keep us all afloat!
On a global front there have been casualties everywhere – The Ukranian Government has had to go crawling back to its old masters in the Kremlin after its Banking system and Economy collapsed and the IMF and the West refused to bail it out!
Russia itself is beginning to melt. The frosty cold war like demands of recent years and the noises coming out of the renegade capitalist government there, have softened to the broad smile of the Obama machine. Where is Georgia anyway?
Has the Bear finally realised that all its efforts to undermine the Anglo-Saxon banking system has backfired and shot them in the foot. If you can’t beat them – join them!
Likewise China, it may well have the largest bank in the world in the HSBC, but if it continues to squeeze and mess with our markets ( The Chinese Government is actively engaged in Cyberwars!), it is the Chinese people that will suffer in the long term, as we will not buy their products, not through protectionism, but through the inability to afford them.
Everybody is running scared of protectionism as it is well known that it was this mentality that depepened the 1930′s global shutdown.
Everybody must come to the table!