Apr 7, 20090

UK in Deflation Trap

Categories: Economic Forecast/Analysis

Real Debt DGP Graph

Is the United Kingdom entering its own Great Depression? The signs say that this is a possibility. Britain is now encountering a situation where it is stuck in debt deflation. Debt deflation is a combination of falling prices and rising debt burdens similar to the Great Depression. Things look worrisome as of late and even though things do not seem as bad now as they do in the United States, there are clear signals from the reports of different departments that things ... Read More

Jan 22, 20090

Interest Rates to Go Down Further

Categories: Banks

uk

Interest rates, apparently, will again be lowered a few weeks from now following the Bank of England’s announcement that there is undisputed support to make it possible. The institution’s monetary policy committee recently slashed interest rates by 0.5 percent to 1.5 percent. It is the lowest interest rate ever for the bank since it was established.   Since October of last year, interest rates have gone down by three and a half points. A member of the committee even proposed a full percentage point ... Read More