Christmas An New Year Wishes

We have had a gloomy couple of years with the financial crisis that is continuing to cause global concern and downturn in GDP.  It is now even affecting China, India and Brazil.  They may still be growing but the rate of growth is slowing down all the same.

This goes to show that the economic policies and strategies that are being used are not really working.  Let's not be too cheered up with the minimal growth that appears as bumps in the road because we are nowhere on the way to recovery.  However, with the appropriate policies we can be.  Let's not continue to only feed the banks that caused the problems but let us support consumers to achieve growth.

It can be done and the sooner we support consumers the sooner growth will return.  WE can spend our way out of this recession regardless of the current belief that we cannot.  Strong consumer effect can get industry working again; without it industry will continue to struggle.  We, therefore need to increase consumers spending power.  This can be done in several ways; a reduction in purchase or value added tax, an increase in wages and job creation in the service industry and public sectors as well as promoting growth in private industry.  This can be easily achieved by quantitatively easing consumers instead of the banks and financial institutions.  Consumers in their turn can and will quantitatively ease industry, the banks and the financial institutions.

A farming analogy is apt at this point.  Your land is not going to give you a good harvest if you just throw tons of seeds on arid land. By clearing weeds, and giving your plants, sufficient room to grow in with adequate amounts of water and fertiliser, they will give you a more abundant harvest.  Unfortunately our modern  politicians no longer come from a solid industry or work related background.  Their life experience consists of nothing but a protected upbringing having only experienced theories about life and economics during their academic years and their friendship with financial institutions or their financial supporters.  Alas poor us and we have voted them in.

There is only one solution out of this economic downturn and that is

                                SPENDING OUR WAY OUT OF IT and IT WILL WORK.


Best Wishes.

Good luck and Good Bye until the next time.

Knight Owl.