Last night we were treated to a long piece from the UK, Shanghai and New York to tell us the recession was global and originated in the USA – which just happens to be the government’s line. We were shown the example of a waste paper business in the UK that could no longer sell at good prices to China, because China no longer needed to make so many cardboard boxes to send toys and other products to the USA.
There was no attempt to find out how much of the UK paper price decline was the result of Chinese as opposed to domestic reduction in demand, and no attempt to quantify the volume of cardboard boxes used for the US as opposed to all other markets in the world for Chinese manufacturers. A sensible analyst would discover that demand elsewhere has also dropped.
Worse still, viewers were left with the impression that all other industries must be similar . Why didn’t the BBC look, for example, at the collapse of housebuilding in the UK? That has nothing to do with US demand or with China.
UK regulators and the Bank of England presided over a huge surge in mortgage lending and house price inflation. They then decided to deflate that, leading to a property crash. As a result very few houses are now being built. Many builders are laid off and building companies are struggling. That is not the global Credit Crunch at work,. That is the Credit Crunch made in Britain.
Pity there is no balance in BBC reporting.