Sunday, December 29, 2013

Recovery or Reinflate a Bubble?

In the world of central bankers, it's hard to tell the difference --

How UK wonder substance graphene can't and won't benefit UK | Science | The Guardian: "... this recovery – built on house prices and mountainous personal debt and all the old vices – isn't the one Osborne and David Cameron wanted. When the pair moved into Downing Street, they swore that austerity would 'rebalance'' the economy towards manufacturing and business investment and exports. In other words, this was meant to be a recovery made of graphene. And the way to get it was to stop a bloated state "crowding out'' businesses. "Ministers thought the problem was the government spending too much," says Duncan Weldon, senior economist with the TUC. "And that if they simply lowered corporation tax and cut the cost of capital, companies would invest more." On that score, Osbornomics has been an undeniable failure. According to official forecasts from June 2010, business investment should have risen 35% by now; it's only increased 1%. Nor has the promised export boom turned up, despite the pound's plunge making our goods much cheaper abroad...."





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