isgraham

Depends which way you are migrating. I've just gone back to the UK and I'm not complaining about the exchange rates.

littda01

Not good to do nothing, but when you're in a hole why dig? The UK was not at risk of being downgraded like a Greece or Ireland. They could have made some targeted cuts, and added a stimulative measure such as tax cuts or investment incentives. Something which would have a chance of creating the jobs so desparately needed.

Remember its not just the public sector jobs and spending that departs the economy, never to return, its the private sector jobs and spending that depends on those as well.

So my bet is the UK will not come out of this in better shape at all. It will be in significantly worse shape.

Kapri

The news today is saying that U.K recovery is better than expected.

BBC

freebo

There was massive waste in the UK public sector, I worked on a number of large govt. IT projects and regularly commented at the time that the suppliers where taking them to the cleaners, it was amazing to see the naivety of the govt departments and the pathetic way they wasted taxpayers money on pie in the sky projects (e.g. NpfIT* - billions gone and 8 years ago we knew it would never work). I also saw evidence of public sector workers who where lazy complacent (not my job to do that etc.).

There seem to be two ways out for over indebted western economies, either try to borrow more & print your way out (which the USA is going for) or cut back & try to repay your debts, I think the latter is the least bad choice Whether the UK is cutting too much too fast only time will tell. Going the USA route would be disastrous for the UK, and may be for them too.

No doubting it will be painful in the short term, hopefully it leads to a better conclusion. Spending cuts where needed - new Labour went berserk with the taxpayers money.

*8 years ago I worked as a contractor on NpfIT and was so appalled at the disastrous way that the project was being run and the attitiude of the suppliers (lets do it as slowly as possible, as we're being paid by the day) that I left after 3 weeks, I could have had many years of highly paid consulting on the project but it would have driven me insane. At the time I said it would be a colossal waste of money - http://www.theregister.co.uk/2010/09..._tech_stopped/

littda01

I am exposed regularly to govt and local govt IT projects here in Aus and let me assure you the picture is not better. Similarly the case in the US.

The truth is that govts have different time horizons and drivers than business, and tend to 'waste' a lot more money. However, companies benefit big time and hence the money is not lost to the economy - its perhaps not as efficient as it would be if invested by the private sector. But if the choice is spend inefficiently or dont spend at all, then its not usually a good idea to take the latter course in the midst of the biggest recession since WW2.

I hear the other point you're making BTW. The US is choosing that path because in some sense it has the luxury to do so. But there's also a third choice in the middle.

freebo

Not forever and maybe not for very long at all.

As to the rest, using NpfIT as an example billions have been spent for little result, some of the money has gone into the UK economy in the form of wages (mostly in the form of fat bonuses to directors) but much has gone overseas to the big offshore consulting firms.

Government is not an efficient allocator of capital, government can only spend the peoples money and big inefficient government is a drain on the economy.

The GFC was only delayed by governments taking out bigger loans to bail out the banks I believe a bigger crisis is coming, it won't be resolved by more inefficient govt spending.

Gotta go for now!

littda01

Except that the growth, not exactly stellar anyway, came from things which are all about to stop...

http://www.guardian.co.uk/business/2...ction-industry

jimbo_d

Well if you chose to believe very blinkered opinions from a rather dodgy newspaper... Go UK, good to see things are getting better

littda01

Provide the other side of the analysis then from the dodgy right-wing papers, or at least point out what he's saying which is wrong?

Here's part of the Telegraphs opinion on it. Not exactly popping the champagne corks.

Even so, we hope the Chancellor was not being premature in breaking out the bunting. Given the depth of the recession, one would expect a growth spurt. And much of the upward tick in GDP is attributable to the last government's stimulus package. The severe winter also helped, creating a backlog of work for the construction industry, which as a consequence performed particularly well. Most important of all, the Coalition's austerity package has barely started to bite. VAT goes up to 20 per cent on January 1 and it will be the middle of next year before the real impact of cuts in government spending are felt. The United States also posted surprisingly strong growth figures early in its recovery, only to see the momentum fall away. Will that happen here? That is anybody's guess. A number of important indicators – consumer confidence, housing activity, hiring intentions – have all been heading in the wrong direction recently

edmontron

Going the right way at the moment...why?

lancastrian48

probable blip.

DownUnderPaddy

Give it a week

Wendy

Because I need to buy some pounds tomorrow, that's why!

Alfresco

Let us know what rate your get.

Wendy

Will do

I booked $1000 worth of currency from the ANZ last week at 60.05p - the XE.com rate was just under 62p.

I am buying a prepaid Visa card tomorrow, also from the ANZ as that's where my cash is. I also have a Commonwealth account, but their rate is a bit less.