How socialism has destroyed Venezuela February 25, 2014 MILTON Friedman once said that, if you put the government in charge of the Sahara desert, there’ll eventually be a shortage of sand. No wonder that, after 14 years of socialist government, Venezuela – the country with the world’s largest oil reserves – is currently importing gasoline. This fact highlights Venezuela’s painful descent into chaos, [...]
How socialism has destroyed Venezuela February 25, 2014 MILTON Friedman once said that, if you put the government in charge of the Sahara desert, there’ll eventually be a shortage of sand. No wonder that, after 14 years of socialist government, Venezuela – the country with the world’s largest oil reserves – is currently importing gasoline. This fact highlights Venezuela’s painful descent into chaos, [...]
The Federal Reserve has finally released minutes from its 2008 meeting February 21, 2014 The minutes from the 16 September 2008 meeting of the Federal Open Market Committee have finally been made public. That meeting took place the day after Lehman Brothers went bust. Then Federal Reserve chairman Ben Bernanke sums up the mood pretty well: Obviously, we started late. We have a lot to talk about. Bernanke didn't [...]
Lower inflation could carry on falling this year February 18, 2014 INFLATION fell below the Bank of England’s target in January, according to figures released yesterday, as the consumer price index grew by only 1.9 per cent in January. Though inflation has not been below two per cent since November 2009, some analysts are now projecting that it will continue to fall through the year. Capital [...]
Grocery sales grow at slowest pace since 2005 February 11, 2014 BRITAIN’S grocery market is growing at its slowest pace since 2005, with only discounters as well as Waitrose and Sainsbury’s defying the downturn and growing market share. Figures out yesterday from Kantar Worldpanel showed that grocery sales rose by 2.4 per cent in the 12 weeks to 2 February compared with the same time last [...]
The ECB’s toolkit looks worryingly limited for tackling euro malaise February 6, 2014 THE CLAMOUR for further monetary easing from the European Central Bank (ECB) has become almost deafening. Despite this, the ECB yesterday decided to hold its interest rate at 0.25 per cent. As one journalist at ECB president Mario Draghi’s press conference griped, “Why won’t you simply cut rates!?” There are two fundamental reasons why the [...]
Shop prices still dropping with fastest fall on record reported February 4, 2014 JANUARY was the ninth straight month of shop price deflation in the UK, with prices falling at the fastest rate ever recorded by the British Retail Consortium (BRC) and Nielsen. Shop prices dipped by one per cent in the year to January, driven by a 2.7 per cent fall in non-food prices. The drop in [...]
We’re seeing respectable growth for a New Normal but real risks still remain February 1, 2014 UK ECONOMIC growth is looking up. The 0.7 per cent GDP increase in the fourth quarter of 2013 might not have been as strong as some commentators were expecting, but it means economic activity is up a full 2.8 per cent on a year ago. It’s not as strong as the 3.3 per cent growth [...]
Inflation since 2008 crash has hit low-paid hardest January 30, 2014 THE SQUEEZE on UK pay has meant much bigger wage cuts for high earners, but new figures now reveal that above-target inflation has hit households on low incomes most severely of all. On average, the highest incomes tracked by the Institute for Fiscal Studies (IFS) have dropped by over eight per cent in real terms since 2007-8. [...]
Growth is back – but here are five challenges still facing the UK January 30, 2014 THERE can be no doubt that the UK’s economic picture has improved dramatically. Growth is back, employment is buoyant and optimism is returning. But the economy remains horribly scarred by the downturn, with many issues still needing to be tackled. Here are five especially pressing challenges. 1) Median incomes remain six per cent lower in [...]