I am scheduled to be on Radio Jamaica later this morning (11:30am UK), you can listen live here. One point I hope to make is that - like Vince Cable - I am concerned about regime uncertainty:
"The open warfare breaking out between No 10, the Treasury and the Bank
of England over the need for a further fiscal stimulus is clearly
spooking the markets. If there is one lesson the government should have
learned by now, it is that creating uncertainty is economic masochism"
On my first appearance on the show in October 2008 I feared that regime uncertainty was the biggest potential problem. Every time the government threatens to change the rules of the game (for example making empty slogans like "doing nothing is not an option") the climate of investment becomes foggier. Here's some key indicators:
- CPI - 3.2% (3% in Jan)
- UK budget deficit - 11% og NI by 2010
- Public sector borrowing (monthly) = £9bn Feb 2009 (£1.1bn Feb '08)
- Public sector borrowing (annual) - £75.2bn over last 11 months, estimates of £1tn this year
- Net debt - 50% of GDP
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