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Have you ever wondered what it was like for Christopher Columbus to discover America? Setting off with people telling him he would fall off the edge of the World. Having no idea what he’d find or what would happen must have been extraordinary. And surely we would have no such extreme adventures?
Well we do! The 1.5% interest rate cut is taking most of us and the financial world in to unchartered territory. What will be waiting at the end of the journey is anyone’s guess. How long this will all last is pure speculation.
The certainties that exist are that banks profits will be masked with write-offs and protectionism. Utilities are still raking in huge sums and will keep making big profits. Brown will not be able to control anything having “invested” huge amounts of money we don’t have. And the real rub comes is how on earth he will recoup enough tax to cover the ever growing debts. Growing because he has pledged to spend us out of trouble, with tax he hasn’t got!
The take from Stamp duty is way down because of the lack of property activity. If there’s even a hint of increasing taxes in the pre budget report I’m guessing there’ll be a lot of anger. If there isn’t then the problems get worse!
So where are going? When will we get there? What will the economic world look like on the other side?
No one can possibly know; but be sure it will be us paying for it and picking up the pieces!
07 Nov 2008 09:14:54