Thread: Britain in grip of worst ever financial crisis,

Sir Mervyn King expressed fears that Britain is in the grip of the world's worst ever financial crisis after the Bank of England announced it was injecting £75bn into the ailing economy.
The Bank's governor said the UK was suffering from a 1930s-style shortage of money and needed a second dose of quantitative easing to boost demand and prevent inflation falling too low.


http://www.guardian.co.uk/business/2...itative-easing

The problem the UK has got is that even though it is acknowledged as having a viable debt reduction plan, the rest of world and their economies are struggling therefore this has an impact - sluggish global growth means countries won’t have money to buy our exports and it will naturally affect trade with those countries.

The Bank of England has introduced quantitative easing (QE) in an attempt to stave off and reduce the impact of the global economic downturn (one of the purposes of QE is to increase liquidity to enable growth, i.e. get money flowing through the economy).

Thanks

John

Originally Posted by John from Moneycorp

The problem the UK has got is that even though it is acknowledged as having a viable debt reduction plan, the rest of world and their economies are struggling therefore this has an impact - sluggish global growth means countries won’t have money to buy our exports and it will naturally affect trade with those countries.

The Bank of England has introduced quantitative easing (QE) in an attempt to stave off and reduce the impact of the global economic downturn (one of the purposes of QE is to increase liquidity to enable growth, i.e. get money flowing through the economy).

Thanks

John

Nice information there John.. it's good to have a realistic and unbiased post to read.

It does make a nice change from ridiculous Daily Mail headlines. Times are certainly tough for the world economy that's for sure and no country is immune unfortunately.

Originally Posted by sam

Nice information there John.. it's good to have a realistic and unbiased post to read.