Bank of England expresses concern

Bank of England Governor Mervyn King states that the UK economy is 'more uncertain then ever'
describing the level of Government debt as 'extraordinary'. According to leading economists the UK will sink into more debt than any other developed country in the world next year.
If this were coupled with an upturn in the economy in general then you could offset the cost against tangible results, however although some industries are reporting stability, there are likely to be significant job losses yet to come in many sectors.
Any hopes that the government had of significant progress before the next election were never really realistic, but look even less likely as each day passes. Right now, Gordon Brown's personal political capital is vastly diminished even the most unbiased political observer must concede that the current administration are in considerable trouble. I would not make so bold as to say that ANYONE could have steered us around the obstacle of global recession, but I maintain that the massive commitment that we have made in order to try and stave off the worst effects of the crisis has always been likely to lead to throwing good money after bad - a precise definition of 'gambling' if ever I heard of one. The trouble is that gambling very often ends up in financial ruin - one thing to subject yourself to that type of fate, entirely another when you do it with a national economy.
Nobody knows what the worst possible scenario might be, but I have a sneaking feeling that we might yet find out. Even a change of government at this stage guarantees NOTHING, much of the damage has surely already been done. It is likely that even the Governor of the Bank of England is not above trying to make some political capital out of the situation, and his comments may well be timed to tip the balance of doubt over New Labour and Gordon Brown specifically. The fact remains however that whatever happens, this administration will be leaving a heck of a legacy in terms of unprecedented national debt which no pretender to the throne should disregard. It is not enough for opposition leaders to shout about recent failings, we need to hear something positive about where a new leadership (from ANY party) will take us which will help us out of this mess.

Related posts:
Is this the new Great Depression?
How to survive recession
Government Intervention
The unsinkable Gordon Brown

Sir Fred gives in...

Under threat of legal action from his former employers Royal Bank of Scotland, Sir Fred Goodwin has handed back over half of his £703,000 pension 'entitlement' leaving him just £342,000 a year to survive on (living abroad in retirement since living in the UK apparently doesn't agree with his health or well-being...).

The bank's chairman Sir Philip Hampton said: "I am very pleased that we have resolved a situation that has been a difficult and unhappy one for all the parties involved, and it is to Fred's credit that he has done this on a voluntary basis."

I am not clear on what constitutes a voluntary basis, folding under threat of legal action is voluntary enough apparently. As far as the British public are concerned, Sir Fred has emerged from this mess as disreputable and intransigent, a magnanimous gesture hardly fits the display of arrogance that we have seen so far in this sad affair. The pressure should more or less dissipate now, although for many, little short of cutting him off without a penny, or better still a spell 'inside' would have been sufficient punishment.

Sir Fred has been in many ways a shining example of how we cannot afford to run businesses in the future, we should be grateful at least that his apparent greed and arrogance will serve as a warning to company bosses who will be taking over the reins as the UK economy struggles to it's feet once more.

Related posts:
Sir Fred's full pension revealed
RBS investigation
Sir Fred Goodwin and his pension

Need a new line of credit?

Whilst it is true that credit cards have been one factor in bringing about the Credit Crunch that has wrought havoc on economies over the globe, selecting the right credit card for you can help bring you out of personal financial difficulties.
I will say right at the start, that this advice is not aimed at those who are seriously in debt and struggling to meet repayments - this is for those who are slipping into a 'manageable' debt but would like to be debt free. If you find yourself relying on a credit card for every day purchases like food and consumables, then you may need to seek professional financial assistance.
If you have a small debt that you are determined to pay off then a 0% interest on transfers credit card would be perfect for your needs. I have had three 0% credit cards over the last few years and have managed to shrink a $13000 credit card debt down to around $300 in that time without paying a cent in interest.
In order to do this too, you must be determined to cut out excess spending and certainly to stop using your credit card for purchases - if you do this, then every cent you pay each month will come directly off your debt. If you can't manage to pay off your debt within the 0% interest on transfers period, then you can just switch the remaining balance to another 0% card at the end of the offer.
If on the other hand, you manage to pay your card off every month and have no debt, then you could actually save money by using one of the many cash-back credit cards available. Also worth considering are other incentive and reward schemes such as air miles cards.
The fact is that you can make credit cards work for you if you control your card rather than allowing your card to control you. If your card is not working for you, then ditch it right now and get one that does.

The 'unsinkable' Gordon Brown

Gordon has defied the critics by keeping his job this week despite the current intense heat of British Politics, but what exactly has he done wrong, and what are the consequences of his weakened position?
Gordon Brown has apparently ridden the waves of a rumbling storm over the way he has been freely berating his colleagues who have been caught short by the MP's expenses row. He was not however first the one to 'strike a blow for justice' over this issue as David Cameron beat him to the draw mercilessly applying high standards and demanding retribution from errant Conservatives giving him the moral high ground. Gordon is guilty of not only agreeing with Mr Cameron after the fact, but also appearing to go about the task with some relish and gusto. Somewhat piqued at having been caught with hands in the till, some prominent MP's set about starting a rebellion to bring down their illustrious leader - setting a fire which would smolder until the recent electoral results were announced.
Of course, everyone knew the results were going to be bad for labour, so the surfacing of this rebellion at this juncture was always a dead cert. The results were bad for labour and bad for Gordon Brown's support of the policy of spending our way out of the recession. Across European and local elections hard-line right-wingers were gathering votes left right and centre. Gordon will go down in history as the man that gifted the BNP two seats in the European Parliament, yet he retains his position and shows that he has learned something from 'Teflon Tony'.
Nationalists and Conservatives have potentially been handed a mandate by the voters to scupper any further plans for 'Stimulus' packages. The unfortunate thing about these expanding spending plans is that if they are not maintained, then the money is basically wasted. We are caught between continuing to pursue a policy that will cost untold billions or scrapping it and declaring the money we have already spent 'wasted' - even a slowing down of the policy of stimulation could set us right back to square zero!
I feel that the Stimulus packages were at least doing a PR job to show people that something was being done, however I seriously doubt that the taxpayer is getting value for money. My fear now is that getting off the 'stimulus train' without having reached any destination will still cost the same, yet give the momentum back to the dark forces that make up 'recession'.