Peston: UK living too high on the hog (again)

3rdRock · Post by **3rdRock** » 23 Dec 2014, 19:31

http://www.bbc.co.uk/news/business-30585540

It is on days like today that I am grumpy with the Office for National Statistics and with myself. Because I would love to usher in Christmas with some positive economic news (or perhaps none at all).

But, as you know, I have been slightly obsessed with the UK's very big current account deficit - the gap between the income paid to, and received from, the rest of the world.

And so I can't bring myself to ignore (curses) today's disclosure that the deficit widened again, to 6% of national income or gross domestic product (GDP), in the three months to the end of October.

That means the current account deficit has been well above 5% of GDP for 15 months, which is the worst it's been since records were first properly collected in the early 1950s.

Tarrel · Post by **Tarrel** » 23 Dec 2014, 20:58

(rant on) Well, I'm not f**king surprised! Whichever government-sponsored economist came up with the idea that buying ever increasing quantities of disposable, Chinese-made* tat, paid for on credit, is the route to national wealth and prosperity needs his/her head examining.

* - Other sources of off-shored pollution, water-squandering and slave labour are available.

There is absolutely no encouragement, incentive or recognition when someone makes the effort to buy locally or from a domestic manufacturer. We received a Christmas card from an old friend the other day. I turned it over and on the back was... "Made in China"! A Christmas card for goodness sake!

The balance of payments figure has two sides; exports, which everyone wrings their hands over, and IMPORTS, which are conveniently ignored. Yes, it would be great if we could develop our exports as a nation. But a good start to fixing the balance of payments problem would be to stem the tide of sh*t arriving at Felixstowe every day, all in the name of "World Trade" and "Free Markets".

We need to make do with less stuff, of better quality, replaced less often and built / sourced locally. Unfortunately this is not in human nature when a ready source of cheap, easily replaceable stuff is constantly pushed at us.

I'd start by introducing a differential rate of VAT for imported goods and, to those in Brussels or the WTO who cry "Foul", I'd say; "f*ck off!" (rant off)

(Sorry. Bit of a hobby-horse of mine.)

Snail · Post by **Snail** » 23 Dec 2014, 21:16

Some posts are so good, they diserve to be read thrice.

I treated myself to a little early Christmas present. It's proudly stamped "hand-made in Germany".

Tarrel · Post by **Tarrel** » 23 Dec 2014, 21:17

For inspiration on the above, try here:

http://britishfamily.co.uk/

Since we took the unusual challenge of trying to survive on only British made goods back in January 2013 we have seen a wealth of food & drink, clothing & consumables and gadgets & gizmos all made in Britain. We have found that manufacturing in the UK isn’t dead – in fact quite the opposite. We are still a creative, talented and entrepreneurial nation… and that fact needs recognising.

Tarrel · Post by **Tarrel** » 23 Dec 2014, 22:21

Snail wrote:Some posts are so good, they diserve to be read thrice.

I treated myself to a little early Christmas present. It's proudly stamped "hand-made in Germany".

Not a Porsche by any chance?

Snail · Post by **Snail** » 24 Dec 2014, 00:50

I had to check the interweb. Holy smoke. Porsche IS a German company and Porsches are and always were built there. Its not italian. It never was.

Learn something new everyday

The thing I bought is comparable: a Seydel harmonica with stainless steel reeds. Yet another beautiful example of German precision engineering.

Post by **kenneal - lagger** » 24 Dec 2014, 02:47

Ferdinand Porsche designed the VW Beetle if I'm not mistaken!

3rdRock · Post by **3rdRock** » 24 Dec 2014, 04:41

kenneal - lagger wrote:Ferdinand Porsche designed the VW Beetle if I'm not mistaken!

Correct. He also designed the beautiful Mercedes-Benz SSK.

3rdRock · Post by **3rdRock** » 24 Dec 2014, 04:52

http://www.theguardian.com/business/eco ... ne-no-plan

UK’s current account deficit is worrying – and Osborne has no strategy to fix it

The chancellor has pledged to cut the budget deficit, but lacks a plan for dealing with Britain’s other deficit now at 6% of GDP