Monday 29 October 2012

British economy continues to slump

Shortly after the desperate clutching at straws ("1% Q3 GDP increase compared with the same time last year!") comes the bank lending figure: down another 0.9% annualised on the previous (also very disappointing) quarter.

QE is just buying time. The real economy is withering on the vine. Until debt is forgiven or defaulted, no real growth will happen. Demand is frozen because of debt and the overvaluation of unproductive assets.

INVESTMENT DISCLOSURE: Mostly in cash (and index-linked National Savings Certificates), but now planning to build up some reserves of physical gold via regular saving.

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