Tuesday, 9 February 2010
So much for export led recovery.
"What now Darling"
Britain's trade deficit with the rest of the world widened to its highest level in nearly a year, in December, as imports rose more than exports, according to official figures published today. Trade has been boosted by worldwide stimulus measures such as 'cash for bangers' car scrapped schemes. The figures showed a 10 per cent rise in car exports but this was surpassed by a near-16 per cent rise in foreign imports during the month.
I hate the way this government takes money away from you to give it to someone else to spend on a car. Then taxes you more for your car because there's too many on the road. If 80% of cars bought are imported it is no wonder that one headline says "car sale increase" and another one says "Britain's trade deficit widens".
We are only half way through this recession. House prices need to fall at least 30% to become affordable to first time buyers, debts levels will reduce consumption for many years, and exports will need to increase considerably to induce any export lead recovery.
Great yellow streak Brown the British tax payer in now subsidizing imports.
The reason exports are not benefiting the economy as they should is because a large part of our industry as gone.
One of the first things yellow streak Brown did when became chancellor is raid £5 billion from pension companies that got tax breaks for investing in British Industry.
Another great thing yellow streak Brown done was that any new investment a company made in new machinery, the tax relief had to be claimed over 3 years, and not in the 1st year when you would need the tax relief the most.