The International Monetary Fund (IMF) have warned Osbourne, Cameron & Clegg must do more and act ASAP to create economic growth, as the Eurozone crisis continues to grow.
IMF managing director, Christine Lagarde, said the UK economy had underperformed, unemployment remained “much too high” and that the situation would become “entrenched” unless ministers sought to inject life into our wilting economy.
In their annual review of the UK they urged that a further round of Quantitative Easing (AKA printing money) – and a fresh cut in the 0.5 per cent rate of interest should be considered immediately.
Ms Lagarde also urged ministers to prepare a further plan for a worse economic environment; such as a Eurozone fallout that could include a cut in VAT or payroll taxes, including National Insurance, plus a fresh injection of money on capital projects across the country.
New figures from the Office for National Statistics, published yesterday, also show that UK inflation is now 3 per cent, compared with 3.5 per cent in March; its lowest level since February 2010.
We all know no one likes a know it all, but anyone who has followed Landlord Referencing Services from the start will know that since the beginning, and even when Labour were still in power and started to throw swathes of cash at defunct banks, Paul Routledge ( CEO of Landlord Referencing ) wrote to both Gordon Brown, and then later David Cameron, warning that they must be very careful not to use public money to support bank debt and forget about making sure that the cash was put back into the economy; to grow our GDP…
- February 2011:
From Paul aged 7 to Mr Cameron.
- October 2011:
Start the National UK Bank & give money out to those industrialists & entrepreneurs.
At Landlord Referencing Services we understand that austerity is needed and that money shouldn’t be borrowed in order to grow an economy, but that’s not the point. The banks have been gifted with low interest rates and that money has effectively been there for the last two years, but has not been lent back in.
If a garden is out of control we all understand that it needs to be cut back, in order for it to be able to flourish again – NOT to stop watering it entirely; as it will inevitably stop growing and die...
It definitely says something about the state of our economy when the banks of this country cannot afford to advertise on TV, to offer small loans and incentives, and the only ones that can are the likes of Wonga.com.