CHASING THE DEBT Mk. II.

The world economy, now includes a downturn in the growth of the Asian countries, China in particular. China needs a growth rate of at least 8% annually to stay on course, but is now falling short of this target. This has thrown the International Monetary Fund into a big panic. The IMF has been concentrating on bailing out the Euro, that being the fairytale currency which is dragging the Eurozone into a major disaster area. In so doing, it has been operating beyond its remit, by helping to prop up the currency; acting illegally.

In response to these dire situations, the IMF appears to be on some kind of 'road show', in an attempt to draw fire from these calamities; Christine Lagarde, Managing Director, playing the lead, along with its top economist, Olivier Blanchard, have decided to humble the United Kingdom Government, suggesting that the austerity measures are not working, which gives the impression that Britain must return to higher borrowing. Bearing in mind that the UK has a National Debt of a nominal £5trillion, thanks to the last Labour regime.

So who are these characters making up this charade? Both French. France as a nation has been borrowing heavily since the mid-seventies. The Euro is bound to collapse, if not totally, certainly, in the case of the Mediterranean countries. The result either way, will turn out to be a 'tsunami' for the French economy, not that it will do the rest of the European nations any good; German goods, in particular, will be too expensive for many of the casualties in southern Europe.

The 'smoke screen' having been set in place, requires a strong response from the UK Treasury, with some real austerity introduced.

UP TO NOW, THE GOVERNOR ELECT OF THE BANK OF ENGLAND DOESN'T INSTILL MUCH CONFIDENCE.