Welcome to the recession

Is it any surprise that GDP dropped more than expected? Gross domestic product fell by 1.5% in the last three months of 2008 after a 0.6% drop in the previous quarter. This means the UK is finally in recession – although we have known this for far longer than it seems the government has known it.

GBP/USD touched 1.35 today! The FTSE is Below 4000 & the Dow is Below 8000 – the worlds economy seems to be going down the financial toilet. But more importantly the UK thanks to Prime Minister Gordon Brown’s actions as Chancellor & PM since 1997 has well and truly strangled this country and it’s in a worse state than many would of thought possible.



The chances of coming out of recession at a quicker pace than any of the other economies on this globe are pretty slim (hence the reason Sterling is now 1.35 against the Dollar – Traders are betting against Brown). Sterling at these levels may indeed help our exports but when an economy has no manufacturing of any importance to talk of there isn’t much to export to the rest of the world. The UK has survived these last 10years+ on high street spending by the masses – but the UK high street is now dominated by the generic institutions that you find on every generic high street up and down the country, there isn’t much an incentive to save it – the British consumer has no reason to feel loyal other than the fact they may work there or they have friends that work at x y and z.

There are very few new businesses these days in the UK that aren’t service based – yeah sure – everyone is setting up a consultancy business these days but how many people do you know have set up a business in the last 10years that are actually making something that they could export overseas? I bet you can count those people on your facebook friend list on one hand – the rest of us are dependent on working for the big financial, corporate and global institutions.

So where have all the entrepreneurs gone?

Are we surprised – we’re all pushed into going to University these days. That’s great isn’t it? Well it would be if we could take what we learnt at University and put it into practice and work for ourselves – but unfortunately the average student now comes out of University with a debt of over £20,000 (if their lucky – as it’s likely to be a lot more than this) – hard to start a new business when you are already up to your neck in debt from day 1. How can anyone possibly rent out commercial premises and start their own business with ease? The British Labour Government likes to strangle anyone’s chances in doing this – they will charge you a fortune in business rates for the priviledge of being in this country – is it any wonder the landscape is only dominated by big firms that made it years ago.



Gordon Brown will continue to preach that he is doing all he can for the economy – but the reality is this disaster of a man has borrowed up to the tilt and is now probably sending us into Depression rather than recovery. What a cock!