The governor of the Bank of England has admitted that the economy may grind to a halt this year. At last, a bit of honesty! Maybe he will also apologise for using every device to keep the ‘good times’ going, knowing the longer it did, the worst it will fall.
But I won’t hold my breath. Indeed, I wouldn’t be surprised if other attempts at manipulation might not stave off the fall for a time longer. But there is no doubt that a recession WILL eventually come. Economies run in cycles – they always have.
Yet, it is an irony that the ‘doom and gloom’ of the economists at present could actually increase the chance and depth of the fall. You see, they are not imbuing us all with confidence. And as such a huge credit economy is a confidence trick in itself, take that confidence away, and down and down it goes.
© Anthony North, February 2008