Trade Deficit Widens. Export led recovery postponed

[I1L2T3]

Seems the Euro crisis is starting to bite.

 

Deficit widens

 

The government seriously needs to find some way of encouraging growth

[chem1st]

The graph of 'Making stuff vs consuming stuff that others have been making'.

 

How do we change it?

 

Make more? Consume less?

 

Nobody knows. But the CEOs have a 49% pay rise, inflation is up - supposedly 5.2% at the minute - but they are massaged!, wages for the common man are falling vs inflation.

Trouble is brewing. Tick tock, tick tock, pretty soon it'll go pop, if there's no relief valve in the system, to let off the excess pressure, an explosion is highly likely.

[Rupert_Baehr]

Seems the Euro crisis is starting to bite.

 

Deficit widens

 

The government seriously needs to find some way of encouraging growth

 

If some Europeans are importing less from the UK, is that because:

(a) They are producing more of what they need themselves?

(b) They can get a better deal elsewhere?

or

© Times are hard and they are getting by with less?

 

I thought times were hard in the UK, too?

 

If the trade gap is increasing, why does the UK not cut back on imports?

 

That will narrow the trade gap.

[Mecky]

If some Europeans are importing less from the UK, is that because:

(a) They are producing more of what they need themselves?

(b) They can get a better deal elsewhere?

or

© Times are hard and they are getting by with less?

 

I thought times were hard in the UK, too?

 

If the trade gap is increasing, why does the UK not cut back on imports?

 

That will narrow the trade gap.

 

1) Because we no longer that the ability or capacity to make out own stuff

 

2) Lots of businesses in the UK are foreign owned

 

3) We are told that imported stuff is cheaper therefore profit margins are higher

 

These are just a few reasons off the top of my head. There will be more but I have to travel now, but you get the picture