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..There's a little Samuel Pepys in all of us..

Monday, October 08, 2007

A fair attempt by Gordon when he spoke with the Parliamentary Labour members to minimise the damage incurred over this past weekend..
Even managed an uncharacteristic quip.. telling his sitting members that at least he had forced the Conservatives to reveal their strategies, which he could now tear apart..
Or adopt..
He'll have his time in office to demonstrate his abilities, or reveal his shortcomings..
And David will hone his political tactical leadership skills while leading the Opposition..
Facing us is Alistair the Chancellor's pre-budget report tomorrow.. which will announce that Britain's growth is greater than any other the G7 nations this year.. but which also must contain the forecast that 2008's going to be a bad year.. GDP forecasts suggest growth will slow, as the ripple effects of the US housing collapse filters through to the wider economy.. add to that this years interest hikes will begin to hit both the companies who've financed themselves through their immediate problem by taking loans at exorbitant rates.. and the consumers who've put themselves into record levels of individual debt..
To wit.. Northern Rock is paying 6.75% to the Bank of England for the cash it took to keep afloat.. Mind you, Northern Rock may well weather what appeared to be a catastrophe.. it's stock's rising again..
The Treasury expects the economy to notch up growth of between 2.75% and 3.25% for 2007.
That's in line with City forecasters..
But its 2008 forecast of between 2.5% and 3.0% is looking increasingly optimistic.
Consumer spending is expected to slow considerably.. credit's tightening..
And regardless of what might be said in Alistairs speech tomorrow, taxes will rise..
Another thought.. Lower official growth forecasts may have been one of the factors that persuaded the prime minister not to call a snap election.
They would have put government borrowing targets under more pressure and tied ministers' hands over vote-winning give-aways.

Meanwhile, back at the ranch..
The mail's not being delivered.. the NHS is screaming for more funding.. Local Councils will be demanding more from Westminster than the recent £50 million which is to be earmarked for 'local integration programs'.. a sop to give the impression the Ministers and elected representatives in Parliament are truely making an effort to ease racial integration.. And, the recent forcasts are that some 65 hundred jobs in the City's financial sector are to be cut because of this recent uproar in the markets..
Now this may seem somewhat insignificant in the big picture.. but it is a significant trend. Jobs, in the financial sector, have been on the increase.. 11 thousand over the last year.. It indicated a growth economy..
This reduction in staff, signifies the opposite in the eyes of the man on the street..
Now.. back to the revision in growth estimates for 2008..
Global Insight predicts a growth rate of less than 2%..slower economic growth means reduced tax revenues, and the spending targets set by Gordon when he was still chancellor will be hard to meet..
So.. Alistair has inevitably had to tread very carefully when preparing the Pre-Budget Report and the longer-term Comprehensive Spending Review, which sets out the government's expenditure over the next three years.
Should be interesting speech..

And, the $Am continues to slip.. oil prices continue to increase.. the price of gold is on the rise..
It's an interesting time..

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