Monthly Archives: January 2011

                  A number of bloggers have in recent months referred to the Bank of England’s interesting decision to switch most of its pension fund into Index linked securities at a time when  it was in public worrying about deflation and possible falling prices. By the Annual Pension fund report in February 2010 the reorganisation [...]

                I have always thought the oil companies miss an important presentational trick. They should put on the pump and on the receipt for fuel how much is UK tax. When almost two thirds of the fuel price is tax, people might like to know that so much of their very large bill is [...]

             By yesterday afternoon the price of borrowing ten year money for Portugal had risen to 7.24%, up from 6.75% at the end of last year.  The Spanish borrowing rate rose too, to 5.53%. The Irish one is still at 9.28%, post the “rescue”.            Given the large sums these countries need to borrow [...]

      Last n ight on Newsnight the French Finance Minister gave an accomplished interview. She understood poorly worded questions and spoke well in a foreign language. Her message was perfect spin. She told us all current members of the Euro would remain members. She said there will be no more bail outs. She was [...]

  Great batting, great bowling, brilliant fielding. This team has it all. More importantly, they had the grit and determination to win, saving the first test when it seemed lost, and bouncing back after  defeat in another. Their story shows you can live your dream if you work hard, take nothing for granted, and never give [...]

                Worldwide inflation is quite rapid. Food prices have been especially lively in recent months. China has hoisted interest rates to 5.81%, Brazil to  10.75% and India 6.25%. Australia and Canada too have started to increase theirs. In the UK mortgage rates and lending rates to small business are nothing like the official 0.56% [...]

            It was good to see the Prime Minister talking the economy up, and some evidence of briefing in the press to point out that UK manufacturing is growing again. There is a recovery underway, and that is most welcome.           Worldwide the news is considerably better than it is in the West. In [...]

              What passes for political debate about the deficit and how to reduce it struggles to inform, because it is based on  the strange proposition that most of the reduction is occurring through spending cuts. The numbers show otherwise. Whilst there are cuts in planned spending, total  spending carries on rising in cash terms, [...]

                 The UK’s economic policies carry a strong family resemblance to EU policy generally. That does not make them  wrong, but it is worth examining similarities, both where they might help and where they will hinder.                 The EU correctly thinks high government deficits are unsustainable and need to be brought down. It recommends [...]