On the 15th March the UK recession reached its lowest point. Why, because the sun came out and everyone’s stories turned from ‘doom and gloom’ to a faint hint of optimism. Aren’t the warming rays of the sun just a fantastic tonic!
Talking of the sun, our global leaders today signed us all up to $1.1 Trillion of debt which at today’s $/£ exchange rate is just a measly £681BN! Apparently this is the equivalent of $1 bills laid from end to end all the way from here to the sun!
Put another way our leaders at the G20 have today signed us up to the gross domestic output of Spain, Australia AND China combined!
Let's put this into context with a bit of history! According to US treasury figures, from 1776 to the year 2000 the USA borrowed a trillion dollars from financial institutions and foreign governments combined. From 2000 the Bush administration then borrowed a further trillion dollars, and today after the G20 summit, as a global economy we’ve borrowed yet another trillion.
As half of this is going to the IMF where and from whom are we borrowing from? The old US debt clock is up to $11 trillion dollars tonight so it’s fair to say that the world’s greatest economy isn’t shoring up this agreement.
But cross fingers it’ll work and as long as the sun continues to shine we can breath a hopeful sigh of optimism that everything in the end will be alright again.
April’s had a glorious start and for the first time in some months more people than not are saying things are looking a little brighter, so cross fingers we’re through the worst of it. Summer’s coming and let us all hope that the negativity of the last 6 months has disappeared with the passing winter.
We can only hope that our leaders at the G20 and their advisors have got it right and let’s once again look forward to making hay whilst the sun shines!