FTSE 100
Dow Jones

Friday, 9 October 2009

The Drugs Don't Work

More egregious spin from the left-wing press to make us think things are improving when the economy is really in meltdown. This time it is from the Guardian who start an article that starts:

"Britain's trade deficit with the rest of the world narrowed modestly in August to £6.2bn as
exporters sought to capitalise on the sliding pound, and the recovery in overseas markets."

Now you would think that meant that a lower cost of sterling made Britsh goods more attractive to foreign buyers and that our exports were picking up as a result. Indeed the article goes on:

"The trade deficit in goods has been narrowing since the crisis began, and official figures released this morning showed that it was £6.2bn in August, down from £6.4bn in July, and more than £8bn in August 2008."

By this time the average public sector employee has switched off content in the knowledge that Alastair and Gordon are doing a fine job even though those private sector profiteers are wrecking the British way of life, which is why they don't take in the next sentence:

"The ONS said exports actually fell, by £100m over the month, but imports fell faster, by £300m, as consumers tightened their belts. "

And that is after taking into account the fact that the cost of imported goods rose by 1%, so British purchasers acquired even less than the headline drop in imports would imply. So what happened to the much vaunted stimulus? Seems it is not having any effect.

No comments: