Friday, January 28, 2011

Cuts, Tax and Red Tape: Will the UK turn into Egypt?


Bread and Water © fintag

News comments:
Egypt is in a mess (cnn). It has very poor people and very rich people and nobody in the middle. Result? Riots and anarchy.

The UK is in a mess. It has a middle class that is turning into a poor class and the very rich non-doms are buying up the UK for peanuts. Result? Soon it will have riots and anarchy.

David Blanchflower (bloomberg) points out that the UK austerity cuts are pushing the UK into a Double Dip. He is right. However he is wrong to think its just the cuts. The real reason is the squeeze on disposable income. What the UK coalition should be doing is slashing taxes at the same time of making real cuts for most of the austerity cuts are nothing but tweaks (john redwood)

Today's shorts:
Holidays to Egypt (thomas cook)

Today's longs:
Only Old Etonians can rock and roll (bbc)

America sends troops into Egypt.


Anonymous said...

Where is the water?

Corp Tax said...

Your comment abt US troops into Egypt not so far fetched. News is emerging that fighting is taking place near Suez. If that canal closes western troops will intervene otherwise watch the price of Crude Oil rocket to 100 in weeks