Economic Meltdown?

Last week during an unusual visit to a different supermarket, my first trip in about a year, I was shocked at the prices of some of the goods. Things that had once been around £1 were £1.40 or £1.50. Some prices, no doubt, differ between the different supermarkets, but when you see up to a 50% increase it can’t help by shock somewhat.

Meanwhile my local corner shop that has always charged £8.99 for two bottles of wine, increased it to £4.99 each and now £5.49. That’s a 20% increase this year alone. Now a 2.5% increase in VAT should not lead to a 20% increase in products, but its not just the wine that’s increased. Petrol, Gas & Electricity and real inflation rates at around 5% tied in with low interest rates and stagnant wages one can’t but begin to worry that the bad times are far from over and the economy could be about to take a further turn for the worst.

Moodys and Standard and Poor ratings agencies all lowering the credit ratings for sovereign states and a worsening Euro crisis in the Eurozone at a time when all the Indicies around the globe are seeing a return to Bear Markets and the FTSE 100 has dropped below the 5000 mark for the first time since the Credit Crunch began.

Meanwhile are Governments beginning to stockpile food in anticipation of something around the corner? http://hawaiinewsdaily.com/2011/09/is-the-u-s-government-stockpiling-food-in-anticipation-of-a-major-economic-crisis/

With the UK National Deficit at around the Trillion Pound Mark and the Governments of the world having implemented their austerity measures, is it all enough to starve off a double dip recession and will growth return once more?

I have never understood how this constant growth model was to become sustainable? Surely if you increase turnover by 10% every year it is impossible to sustain indefinitely. Surely as the sun sets every evening and rises every morning, economies will go through times of prosperity and times of hardship. Perhaps the hardship cycle has been long overdue.

Meanwhile, as the western economies find themselves buried neck deep in debt, merging markets are ready with their growing economies to take over what was once the western powerbase. Is the West ready to give it up? What will this mean for the future? Can our coalition Government actually return our land, Great Britian, to a place of prosperity once more? Or, instead, will the austerity measures lead to economic woes?

They tell us that One in Seven shops in some parts of the land are about to close as the public hold on to their pennies and avoid any unnecessary expenditures. Can the current cuts and austerity and tax increases be enough to save our bacon? It would appear that far from the deficit shrinking it seems that they borrowed even more money last month as benefit payments to the growing number of unemployed rises. My friend Neil and I often have to say think P.O.O. Positiive, Optomistic, Outlook. Think positive and have positive vibes in all you do. I will confess, it has does feel like we have been squeezed and that things have been gloomy for so long now that the pre credit crunch days of growth and having money feel so far long gone.

Lets hope that we have a mild winter which will keep energy costs down and that as fast as the Christmas season will be here and then gone, a new spring will dawn and a new year will bring with it prosperity and finally the economy will turn around. Will Greece get the next cash injection? Will the Euro stay instact? Will we ever pay of the Soverign debts? Time will tell, but as we pass each day, lets remain positive and in words of the pre war posters “Keep Calm and Carry On”.