Monday, 9 January 2012

Daily Telegraph: "We may pass through Hell, but the UK will rise from the flames"

Link to Daily Telegraph

"... The UK's future relative economic performance will be subject to competing forces. 

"On the negative side, we still face a stark adjustment in both the housing and labour markets. Fiscal tightening will also continue, although it is far from clear that this will be any greater here than in either the US or the eurozone. 

"On the other hand, the prospective drop of inflation will be much greater here than elsewhere. Accordingly, the bounce-back of consumption could be proportionately greater. ... Once the eurozone recovers, the growth in UK exports should be much stronger than the equivalent in the US."

The Guardian: "Angela Merkel has the whip hand in an orgy of austerity"

Link to The Guardian

"The language of S&M is also now part of the eurozone discourse. The joint letter sent last month by Sarkozy and Angela Merkel to Herman van Rompuy, president of the European Council, explaining the Franco-German plans for future governance of the single currency stressed 'fiscal discipline' and the need to 'detect and correct departures from sound economic and fiscal policies long before they become a threat to the stability of the euro area as a whole'.

"... This sort of aberrant behaviour is now commonplace across the eurozone where, unlike in Britain, it cannot be blamed on the peculiarities of the educational system. Perhaps a Freud or a Jung could explain what is happening: it certainly defies rational economic analysis."

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