Home > Banking Euro Crisis, Common Sense, Greece, It's all about money, It's just wrong, Madness, Technology, The economy, The effect of low interest rates, Why it's all gone horribly wrong? > IMF backs tax and interest rate cuts to dig UK out of recession | Business | guardian.co.uk

IMF backs tax and interest rate cuts to dig UK out of recession | Business | guardian.co.uk


Christine Lagarde, Managing Director, Internat...

Christine Lagarde, Managing Director, International Monetary Fund (Photo credit: Wikipedia)

IMF backs tax and interest rate cuts to dig UK out of recession | Business | guardian.co.uk.

It may have escaped Christine Lagarde’s notice that the UK has had interest rates of 0.5% for almost 3 years now.

This hasn’t made a jot of difference to the UK recovery scenario because domestic bank lending (which fuels growth) just hasn’t been taking place.

The banks have been so wrapped up in Basel III to increase their capital bases to guard against the next disaster, a failing sovereign state, take your pick from Greece, Spain, Italy or Portugal.

Unemployment is high because public sector jobs have been destroyed and corporates are too busy growing inorganically by sacking staff. E-commerce has also played it’s part in job destruction.

There is no chance of any recovery or repaying any debts until Governments start re-employing and corporates start giving jobs back into the economy.

What about job sharing? A three/four day working week would get youth off the street and make them feel worthwhile again.

Just a thought.

No doubt things will get worse before they get better when S&P and their sheep like friends decide to downgrade the UK.

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