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Friday 9 October 2009

A true measure of Britain's problem

The World Economic Forum [best known for running the annual Davos shindig] has announced that Britain is the world's 'leading financial centre'; but this apparent accolade is balanced by the fact that the same survey lists Britain in 37th place for 'financial stability', after Nigeria and Bangladesh in a table of 55 countries.
The UK was 44th for currency stability, 45th for the stability of the banking system, 39th for managing the public sector debt and 40th for managing private deabt.
This is because there is precious little evidence that the government and the Bank of England really have control of the system
By keeping the economy open to global financial trade the government gets taxes from the City trading firms and on the salaries and bonuses of the traders. The cost of doing this is to expose the 'real economy' and the economic existence of citizens to unpredictable and potentially violent fluctuations.
Gordon Brown thinks that he has 'saved the world': he may have benefitted other countries by his vastly expensive intervention in the meltdown of the financial system in 2008, but he has pushed Britain further out on the limb that hangs over an abyss.

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