International currency exchange rates a bankers’ conspiracy

UK economy grinds to a halt as GDP growth falls to five-year low 

0382b5f5-1970-43e3-a858-daca93ca19a9Britain’s economy ground to a halt in the first three months of the year as bad weather piled woes on top of squeezed household finances and a troubled construction industry.

GDP growth plunged to just 0.1 per cent in the first quarter of this year compared to the last quarter of 2017.

By contrast, in the previous quarter, the economy grew by 0.4 per cent, according to the Daily Telegraph.

Mark Carney, Governor of the Bank of England, is now expected to keep interest rates on hold at the Bank’s meeting next month, cancelling a long-anticipated hike.

getty_174893467_157911“Our initial estimate shows the UK economy growing at its slowest pace in more than five years with weaker manufacturing growth, subdued consumer-facing industries and construction output falling significantly,” said Rob Kent-Smith at the Office for National Statistics.

 

Philip Hammond, the Chancellor, blamed the weather.

” However the ONS said the snow is a small part of the picture.

“While the snow had some impact on the economy, particularly in construction and some areas of retail, its overall effect was limited with the bad weather actually boosting energy supply and online sales,” said Mr Kent-Smith.

4834224E00000578-5274955-image-a-8_1516178024629GDP per head fell by 0.1 per cent quarter on quarter, the first drop in two years.

The construction sector’s output plunged by 3.3 per cent, dropping in every month – not just those with the worst weather.

Manufacturing slowed to grow by just 0.2 per cent.

Production industries rose by a more impressive 0.7 per cent, as the oil and gas sector rebounded from pipeline closures late last year, and families turned up the heating.

Economists hope for an improvement in growth in the coming months.

But now Mr Carney and his colleagues have to judge whether or not this more severe crunch will have a longer-term effect on the economy.

One factor harming growth has been the fall in household spending power, as inflation outstripped wage rises for much of the past year, largely because the weak pound pushed up import costs.

fuel-poverty-familiesBlame the weather! Dear God! It seems what little growth there was, was caused by Brits turning up their home heating! Is that the best UK economists can come up with?

By contrast, according to Trading Economics, “Turkey . . . is one of the world’s biggest producers of agricultural products; textiles; motor vehicles, ships and other transportation equipment; construction materials; consumer electronics and home appliances”. The Turkish economy grew 7.3% in the fourth quarter of 2017. The construction industry is booming!

The Economist noted that “In the third quarter of 2017 GDP surged by 11.1% year-on-year, outperforming all major countries”.

“The Organization for Economic Cooperation and Development (OECD) has revised up its estimate for Turkey’s economic growth in its global economic outlook.

In the interim OECD Economic Outlook, which was released on March 13, Turkey is estimated to have grown at 6.9 percent in 2017. In the organization’s previous report in November 2017, Turkey’s economic growth was estimated to exceed 6 percent in 2017, driven by strong fiscal stimulus and an export market recovery.

why-london-bankers-should-consider-moving-to-frankfurt-in-the-event-of-a-brexitTurkey’s GDP is expected to rise by 5.3 percent for 2018 and 5.1 percent for 2019, from 4.9 percent and 4.7 percent respectively.”

In spite of that, the Turkish Lira has plunged to 5.59 to the pound sterling. If you didn’t believe international “money markets” are a monumental racket – I’m telling you now!

Advertisements

8 thoughts on “International currency exchange rates a bankers’ conspiracy

  1. In my view, the emphasis on growth needs to end and society needs to aim at a steady state economy. Economic growth always means more extraction and depletion of natural resources and more pollution of our air, water and food chain. The only reason growth is needed currently is to satisfy the endless debt pyramid that results from private banksters creation of money as debt. We need to end it ASAP.

    • You’re absolutely right, doc! – but who’s going to lead the way? The USA has been showing the world the path to riches and power for a century, and most of the world is keen to follow. And the subtext is, if you don’t have power, you’ll be bullied into submission. I wish I could be optimistic about the future – but I fear asap isn’t going to happen.

      • I don’t know if you have followed the banking scandal in Australia (they own all but 2 of our banks of course). There’s a growing demand for a Royal Banking Commission investigation in NZ – and dozens of us sovereign money advocates all ready to make submissions – so they won’t be able to ignore it.

      • I did read something about it – strong denials from NZ bankers that there was any connection with what was going on across the Tasman. I haven’t been following it closely, but I will definitely start now. Thanks for drawing it to my attention. And good luck with stirring up trouble for the banks! 😉

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s