Friday, 21 August 2009

No light at the end of the tunnel!


By no starch of the imagination would I consider myself to be an expert on economics’, I find it hard to get my head around most of it, but try to understand what I can. Last week then, the media were making much to do, about signs that both the French and German economies were improving; and that this somehow meant that we were coming out of recession; it did no mean a great deal to me even though some of my friends fell for the hype peddled by the popular press. That’s the problem with today’s press they will print anything that generates sales rather than provided useful information whilst feeding off and hanging onto peoples real anxieties.

Who wouldn’t buy a newspaper that promoted a wee glimmer of hope, many are praying for light at the end of the tunnel. But the sad fact is this is nothing more than a flash in the pan. Considering other reports I’ve seen suggests otherwise for instance an example to illustrate my point would be the fact that the German and U.K. governments on Thursday became the latest to reveal growing fiscal strains as they struggled to limit damages of the economic downturn.
Rising social outlays and plunging tax receipts have widened budget gaps and driving up borrowing requirements, according to reports issued by both governments. The reports, in line with budget updates coming from elsewhere in Europe this summer, underscores the pressure on governments as most forecasts see a long and shallow recovery, dogged by high unemployment.

So there we have it then no light at the end of the tunnel.

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