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"UK facing risk of 'systemic economic crisis', official paper says"

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gork

Nov 25, 2020, 15:43

When you're in a hole, you should stop digging.

Not only has Brexit been deemed a "monumental act of self-harm" but these clowns are now stripping out Huawei equipment. It will cost billions and set back poodle infrastructure by years.

The poodle state has spent five centuries pludnering the World before the pothead war criminal announced they had to "live within our means". So it's unprecedented.

The poodle state hasn't had a trade surplus since 1982 and that was on the back of N. Sea oil which has now dried up and the poodle-state is a net importer of oil.

All three components of the current account, goods, services and income, have turned negative. This is being funded by a HUGE doggie death-spiral firesale.

Even Hugh Grant realises the poodle state is doomed.

What's the plan going forward? Presumably to carry on digging!

6 304
gork

It Doesn't Rain But It Pours

He was always against, continues to lament it, and going forward he holds the ultimate leverage of a trade deal over the UK.
- Joe Biden wastes no time wading into Brexit debate as Irish roots colour his view

The Office for Budget Responsibility (OBR) was forecasting the economy to contract by more than 11 per cent this year – the largest fall in output for more than 300 years – but here was Mr Sunak not only hiking departmental spending by £15 billion but also upping capital spending by £27 billion to deliver a "once in a lifetime investment" on infrastructure.
- Rishi Sunak laid bare the looming economic calamity – then pledged to spend even more

You're supposed to make hay whilst the Sun shines. Instead, the poodle state has waited until it's so bankrupt, insolvent and desperate that it's robbing its own sheeple on the highways, is dependent on China for funding HS2 and Hinckley Point C (which is being bought by hire/purchase, aka the "never-never"). And as part of this flamboyant largesse is ripping out existing Huawei equipment at the cost of billions which will also delay its 5G rollout.

You're also supposed to pay off debt when you have a surplus. But in Poodleville, they don't even understand the concept.

“So all of the projections we have produced in the past would show the deficit - on unchanged policy - on a rising path, an unsustainable position.”
- £30bn of tax rises or cuts needed to balance the books, watchdog warns

All three components of the poodle current account, goods, services and income are in negative territory. In fact, there doesn't seem to be any facet of Poodleville which isn't in trouble: When the English are worse at English than the Chinese, you know you’re in trouble.
- SATs aren't damaging kids — low expectations are

Clearly, the poodle-state is headed to hell in a handcart. But when it gets there, it'll probably be refused entry too.

Unemployment is set to hit 7.5pc by the middle of next year, falling only slowly so it is still at 4.4pc in 2026, compared to 3.8pc at the end of 2019.
- Pandemic set to permanently scar the economy

Perhaps they should take the Piers Morgan approach, simply pretend it's not happening and hope it goes away.

Also: "October redundancies double last year's rate"

gork

Britain is permanently poorer, and the British state weaker, as a result of Covid, the collapse in GDP and the gargantuan debt binge that has kept us going. Our economy is the most socialised it has ever been outside of war, and we have resorted to the printing presses to finance spending in a shockingly unprecedented way, pushing the great fiat money experiment close to breaking point. We will spend a lot more every year even after the virus is gone, which will necessitate tens of billions worth of tax hikes or spending cuts merely to stabilise the debt.
. . .
We are, to paraphrase Bill Gross, writing at the time of the financial crisis, lying on a bed of nitroglycerine.
- Britain is facing ruin, but deluded Tories are still refusing to accept it

In other words, the poodle state has no room for error. Just one unforseen jolt and the poodle quackonomy will be firmly jammed up poo creek without a paddle: In a higher interest rate environment, the Government and the public finances would be up the proverbial creek without a paddle.
- The Achilles heel in Sunak's plan

Hence why, incredibly, it is sticking with its promise of years of French-style, debt-fuelled public binging on grands projets – some useless (HS2), others worthwhile (roads, hospitals and broadband) – and lots more cash on day to day spending, not least the levelling-up fund, despite the radically changed economic backdrop.

Even more incredibly, with Huawei having attained the VERY HIGHEST security ranking according to international standards that both the Great Satan and poodle ascribe to, they've chosen to strip out Huawei equipment that they've already installed and choose a more expensive option, all of which will cost billions and delay 5G for years.

This is flamboyant hubris similar to Poodle bonds which used to be "gilt-edged" as a show of wealth but really reflected how desperate the poodle-state was to maintain confidence in the stability of its empire of plundering.

Now it's more like Monty Python's Black Knight after all his limbs and torso were severed.

I don’t blame Sunak. His speech almost deliberately emphasised the extremity of the internal contradictions, the cognitive dissonance, the inconsistency between economic reality and the politics. He identified the economic emergency, but did little to tackle it.

That sounds very much like Norman Lamont's exit speech when he complained of "short-termism". It beggars belief that even someone with a 1st in Quackonomics from Oxford, which isn't worth the paper it's printed on, was as oblivious as Captain Haddock to the dangers.

gork

The "first time the mail-boat was a day late", these hapless clowns LITERALLY started eating one another.

Is it any wonder, then, that:

'Anglos caused most of the world's problems.'

                                                                    - David Cameron, British Prime Minister, 2010-2016

//blog.chinadaily.com.cn/forum.php?mod=viewthread&tid=1795128&extra=&page=114

gork

Poodleville's perfect storms are legion and converging simultaneously.

Chancellor of the Exchequer Rishi Sunak sought to balance more jobs support with controversial spending cuts to help pay back the U.K.’s huge pandemic debts, as he warned the country is facing an “economic emergency.”
- U.K. Faces Worst Slump in 300 Years as Sunak Set to Cut Spending

Already, the poodle state is undergoing a HUGE doggie death-spiral firesales of assets. Already, it's so bankrupt, insolvent and desperate that, like the Great Satan, it's robbing its own sheeple on the highways in the most ridiculous farce in history. You've never seen a collapse as bad as this. It's not only the quackonomy, the currency and the empire that's imploding. It's also their species.

gork

The biggest investment of all is needed in full fibre broadband. We are still basing connectivity decisions on the notion that rail and road traffic will increase when the pandemic suggests otherwise.
- The colossal cost of infrastructure is a British disease nobody can cure

LOL! 5G is fifty times faster than fibre. Yet they plan to block Huawei by 2027 and remove all Huawei equipment at the cost of billions.

gork


It comes after analysis by the London School of Economics and UK in a Changing Europe concluded in September that the long-term economic impact of a no-deal Brexit could be two or three times worse than that of the pandemic.
- No-deal Brexit to cost more than Covid, Bank of England governor says

The only sensible option would be for the poodle-state to:
defy the power of the money-changers, 
swallow humble pie, 
beg to rejoin the EU, 
massively devalue the poodle,
adopt the euro, and
balance the budget.