The Budget

Before we address the Budget, let's look at the facts...


Earnings growth = 1.5% and Inflation = 3%

UK house prices down 20% for the last two years

UK GDP = 0% for the last two years except for a spike after the Olympics which is now over

Unemployment never hit 10% as predicted, it peaked at 8.5% a and is currently at 7.7%

Mortgages at their lowest because of 0.5% base rates

UK Debt climbs from 35% to 75%

UK Household saving ratio was 4% now 8% because of fear of loss of employment, not a good time
for a retailer as households are saving and not spending

What does all this mean for us?

There is a dilemma which we expect the government of the day to address, in 2008 it was called the global economic crisis which caused a recession. The country has huge debt and needs growth to climb out of it. The old fashioned way was to spend your way out of debt, something that does not work for a single person, but does work for governments. However, we have been told that is not possible because of the size of the debt, so why has another answer not been forthcoming?

Despite all the negativities in the news today. the Chancellor seems to have produced a package of hope for many people. He does not have much to work with, however there are several initiatives that are going to be introduced to help business and people alike, one of them should introduce 600,000 new jobs during 2013, I hope I can get one of them...

Cyprus, is it part of Europe?

Firstly, Cyprus has succumbed to the same issue as Greece, Ireland, Spain, Italy, the list just gets longer.

One difference is one of the conditions to their bail out is to pull a one off levy on the countries savers. This has no precedent. Naturally it has caused an uproar and the public anger was so strong, the Cypriot parliament has voted against it.

It has become apparent that Russians have HUGE deposits in Cyprus and the Cypriot government has now approached Russia with a view to ask them to back a loan that would cover their deficit. If the rumours are true, the Russians have said yes, however, they [the Russians] now run the country!

How does that stack up with Europe?

City becomes bankrupt

A stunning headline, although nowadays, perhaps not so stunning as economically the world seems to have gone mad.

However, how does a city like Detroit become bankrupt?

At it's high point, the 2 million population had a settled way of life and it was seen as one of the driving forces of Northern America, now with a population of 700,000, it isn't making enough money to pay for basic public services.

Kevyn Orr has been chosen for emergency manager of Michigan's largest city, while the Mayor has been arrested on corruption charges.

China's new president

Xi Jinping has just started his 10 year term after an election where there was only one name in the ballet. No, I am not going to drone on about Communism, just because I do not believe in it, but I would like to point out some facts that are known.

People in China are more aware of the outside world now than ever before, partly due to communications, but perhaps more importantly, people's access to communications.

The middle class in China has increased substantially, and these people while being brought up their whole lives under Communism are now seeing how the rest of the world lives. Of course it is not all good news outside China, but they must see how other people live and how they have control over their lives. I wonder if over the next 10 years if China's middle class will start asking for more of a say in how their country is run, and more importantly will they be allowed to express their feelings openly?

Apparently another first in China last week was the military budget was increased, whereas in the rest of the world everyone else is cutting theirs. Now I doubt very much that China is thinking of invading someone, I suspect that the military build up is for internal use rather than external, which does not bode well for those affluent middle class who now think it is time they were allowed to speak out.

His message to the armed forces was that they must continue to pledge allegiance to the Communist Party. China's military is expressly political, controlled by the party not by the state. Its duty is to uphold the rule of the party. So when Xi Jinping says he is about reform for the next decade, he is not talking about Communism  or politics he is talking specifically about the party. I doubt an open forum will exist at the end of this decade.

Comic Relief

The 25th Red Nose Day has raised £75 million pounds.



What recession?

Astonishing betrayal

First the complaints, then the arrests, now the back down!

The Prime Minister has rejected Leveson absolutely.

There is not much point in writing what Leveson said, as it is in his report, which in my view is excellent, however, it is now perfectly clear instead of implementing the answer, David Cameron is just going to satisfy the press moguls.

So when Lord justice Leveson said this is the eight and hopefully the last enquiry, he could not have foreseen the betrayal that has happened.

NHS shame still...

Sir David Nicholson, who is still at the head of the NHS has just appointed his number 2, Dame Barbara Hakin.

She receives £70,000 a year as national managing director of the NHS Commissioning Board. 'Reported' to have forked out £500,000 for a gagging order to silence United Lincolnshire hospital trust, where 670 patients died needlessly. Believed to have quashed a report investigating why so many had died at the trust. Promoted to interim deputy chief executive of body in charge of the NHS, deputy to David Nicholson.

She should fit in rather well to his <elite> coven...