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  • horacebello horacebello Aug 10, 2009 8:30 AM Flag

    GM Board

    Mervyn King (BANK OF ENGLAND), 'll make this warning on Wednesday, coinciding with the latest official data on inflation, according to The Daily Telegraph today forward.
    Very painful recovery newspaper says that Mervin admitted > the worst of the recession has passed and that the GDP could increase by the end of the year, but require that the recovery may be even more painful that the crisis itself. The risk that the country'll fall into "the trap of deflation over-indebtedness" could be one of the reasons that last week the Bank of England approved increased funding for economic recovery program at 50,000 million pounds (58,000 euros).
    A former member of the Monetary Policy Committee, the public body responsible for deciding down or if interest rates rise, among other tasks, Sushil Wadhwani, reinforced this view by noting that next year could be even worse than 2009, as a "second wave" of the economic crisis could affect the United Kingdom . These findings are consistent with the diagnosis of the late Nobel laureate in economics Paul Krugman, who already warned that they are not taking sufficient measures to prevent a slowdown in economic growth as occurred in Japan. Japan grew dramatically during three consecutive decades, from 60, but between 1992 and 2002 GDP increased on average around 1.3%.
    It was not until 1998, after concluding that the scope of the crisis could be greater than expected when the authorities decided to develop a reorganization plan with the bank that avoided bankruptcy in the sector through public aid to those most feasible and introduced regulatory changes to strengthen the work of supervision by the Executive.

    "Growing Evidence"
    Despite signs that economic recovery has begun and that the worst of the recession has passed, Wadhwani said that "there is growing evidence" that the United Kingdom is following the same path as Japan in the 90s. "Recession is finished in the sense that now we have probably three or four quarters of rebound.
    People mistakenly believe that things will return to normal then, "said Wadhwani, who emphasized that these signs of improvement are due to temporary factors." The second half of 2010 could be more difficult for the United Kingdom to 2009. There'll be a further tightening of tax, the VAT cut 'll have disappeared and the world 'll slow down. There'll be many things coming at the same time that'll hurt the economy, "noted
    If your grandparents anticipate all , and Mr Bernanke and King made it clear last week that no recovery in sight.
    The other detail is the time: so many people predicting (TTheory) second half of 2010.

    (sooobearish minister returns at second half 2010?)