Economic Pointers

An Item Club report points up the fact that many British companies are cash rich. This is a very important statistic and shows how confused some politicians have become, with their demands for more, which means rash, lending by banks. Dividends are also on the rise. What this means is that outside the High Street, business has weathered the recession well and now has the power to lift the country out of the doldrums.

To make this even more attainable the world economy is expanding fast, outside the busted countries  caught in IMF/EU loans and penal cutbacks. We already know that manufacturing is expanding fast. What is now needed is a real blitz, whilst the pound is soft, on overseas markets. Home consumption must remain static as a consequence of the deficit reduction, but there is a vibrant world out there which holds the key to a firmer, more prosperous future.

What must not happen is for the weight of the state sector, once again, to grow. This will drag down the creation of real wealth, in favour of consumption through borrowing and asset inflation. We all know what happens then.