Saving

I read yesterday that the U.K has become a country of net savers, by the biggest margin in history. In fact most of this is going to debt reduction, but it is nevertheless the best news for the future of our economy that we have had this year. It represents real structural change of the kind needed to build a more secure future. Once the household debt is reduced, we need to go on saving more and borrowing less. More on this in the New Year.