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Economy

IMF calls for government action for growth

Deflation

The world economy is slipping into a deflationary trap.  That’s the stark warning of the International Monetary Fund in its forthcoming World Economic Outlook: “Eventually, the economy may end up in a deflation trap—a state of persistent deflation that prevents the real interest rate from decreasing to the level consistent …

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Is the ‘gig economy’ about to crash?

Gig economy

A few years ago it was being touted as the future of work.  In part a response to the threat of globilisation to traditional forms of employment, in part an entrepreneurial use of new technologies; the ‘gig economy’ was meant to herald a new round of prosperity across the developed world.  As …

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Italy on the verge of destroying the Euro

beppe grillo

On the back of the slow collapse of the Italian banking industry, Italy is just three all too plausible steps away from destroying the Eurozone according to John Hulsman at City Am: Step one is that Prime Minister Matteo Renzi loses the autumn referendum on reform of the political system …

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Forget GDP – it is per capita GDP that indicates our demise

Recession

Across the Western World there is a growing sense that something is wrong.  The economic ‘recovery’ that we have experienced since 2008 feels for all the world like a depression.  Despite official GDP figures showing (at least some) growth, more people have been forced to turn to foodbanks (UK) and …

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Doing the same thing in the hope of a different outcome

Bank of England

It is doubtful that Britain’s economic woes are entirely the result of Brexit.  In the ordinary course of the business cycle, we were overdue for a recession anyway.  Add to that the spectacular current account deficit and vast public borrowing that resulted from Osborne’s ill-conceived and ideologically-driven attempt to run …

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Forget Brexit – banking looks set to kill the EU dream

EU banks

While public attention has focussed on the British vote to leave the European Union, an even deeper crisis has been brewing in the EU banking sector.  Italian banks are desperate for a new round of bailouts, while similar crises are worsening for Spanish and Portuguese banks. All three countries pose …

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The global economy has stopped passing go!

Monopoly

Economists and central bankers often chastise us for likening the global capitalist system to a game of Monopoly.  But according to US investment advisor Bill Gross from Janus Capital that is exactly how we should see it: “If only Fed Governors and Presidents understood a little bit more about Monopoly, …

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Economists’ blind spot to Britain’s biggest danger

Household debt

Following the referendum vote to leave the European Union, the Bank of England Financial Policy Committee has highlighted the biggest dangers to the UK economy.  These include the potential for a crash in commercial property, the growing current account (balance of payments) deficit, fragile markets and problems in the wider …

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Italy next in the slow motion Eurozone train crash

Italian Government

The impossibility of running a single monetary union without a central government to operate fiscal policy is becoming increasingly clear to those at the heart of the Eurozone.  Having witnessed the collapse of economies on the periphery of Europe – Greece, Ireland, Portugal and Spain – with the inevitable imposition …

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UK economy was collapsing prior to Brexit referendum

Construction

When it comes to political legacies, David Cameron’s is already in tatters… and things about to get a lot worse.  Although most of the Remain Campaign’s warnings about the imminent appearance of Conquest, War, Famine, and Death following the June 23 vote did not materialise, the UK economy is clearly …

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