This morning we hear that a Eurozone collapse would lead to living standards dropping to that of Latin America. Ex-chancellors Brown and Darling predict that France will be next to take a battering from the markets…
So how long will it be before we are urged to splurge on Christmas to save the UK economy? From preaching a message of austerity and belt tightening will our government change it’s Christmas message to – “spend spend spend?”
I for one have been running austerity measures in our household for too long to allow a huge Christmas splurge – we don’t do credit anymore so all our Christmas purchases will be paid for in cash – BUT my news savvy 13 year old has already commented that the Christmas budget should be doubled this year – because spending more on her presents is in the national interest !!
Scrooge or Greek style spending – what will it be in your household?
The crisis in Italy and the Eurozone debt nightmare is becoming like navigating spaghetti junction in rush hour.The complexities of the crisis and the ramifications for the world economy if country by country finds themselves insolvent make the mind boggle. We have built our societies on debt and some might see current events as divine retribution for greed – a natural reordering of an unsustainable world in which wealth has been created by manipulation,expoitation and massaging of the figures and not by plain old fashioned productivity and hard work.
We are being warned that the Eurozone crisis is worse than the banking crisis of 2008. Italy’s debt interest rate stands a 7% this morning described as unsustainable – I allowed myself a wry smile when I read that Barclays has a £27.5 bn holding in Italian debt – hard to feel sorry for their potential losses when they levy an interest rate of 30% on debt ridden Barclaycard customers – yet this punitive interest is in their eyes perfectly sustainable !