OECD States The Bleedin' Obvious!

OECD no longer remotely favours austerity...

its chief economist tells me
- fresh austerity would provoke a popular backlash
- fiscal policy should do the stabilisation work
- governments should ditch fixed targets on debt

m/f
https://t.co/408GwX7XQk

— Chris Giles (@ChrisGiles_) January 4, 2021

It is remarkable that it took the OECD so long to realise this, all in all I am beginning to wonder if the OECD is shite!

Tax Investigation Insurance

Having a Solar Protect Tax Investigation Insurance policy at your disposal means that should you be one of the many 1000's of businesses or individuals that are selected by HMRC each year to look into your tax affairs your own accountant (your tax return agent) can get on and defend you robustly.

You have the peace of mind knowing that your accountant's (your tax return agent) fees will be paid by the insurance without any Excess for you to find.

Tax Investigation Insurance is an insurance policy that will fully reimburse your accountants (your tax return agent) fees up to £100,000 if you are subject to enquiry by or dispute with HMRC.

A Solar Protect policy will enable your Accountant (your tax return agent) to:

• Deal with any correspondence from HMRC
• Attend any meeting with HMRC
• Appeal to the First-tier Tribunal or Upper Tribunal
• Having the security of knowing that fees will be met in full will enable your Accountant (your tax return agent) to defend your position robustly

Please click here for details.

UK Growth To Outstrip Eurozone Growth - There's Irony For You!

OECD cuts Eurozone 2016 growth forecast by 0.1% to 1.5%, raises U.K. forecast to 1.8% from 1.7% #Brexit

— MineForNothing (@minefornothing) September 21, 2016

OECD Sounds Brexit Warning

The OECD has slashed its forecast for UK growth this year to 1.7%, down from an estimate of 2.1% three months ago.

The OECD also warned that a Brexit vote will have a negative impact on the global economy, likening it to a hard landing by China.

The alleged negative economic impact of a Brexit indicates that the OECD believes that Britain plays a major, and indeed vital, role in the global economy. Given Britain's economic stature, I am surprise that the OECD gives Britain such a downbeat assessment for making its own way in the world outwith the EU.

House Prices Overvalued?

According to the OECD, house prices in the UK are too high.

The Telegraph reports that a study by the OECD, which compared prices with local wages and rents, suggests that British house prices are 31% too high compared to rents and 21% over-priced against incomes.

Given that housing is the bedrock of the British economy, providing a credit hungry public with the raison d'etre to borrow ever increasingly large sums of money, people would be forgiven for thinking that this analysis is grim news for the economy.

Fear not!

The British government cannot help itself when it comes to meddling in the housing market and, via its Help To Buy Scheme announced in the March Budget, has already taken actions to underpin and further stimulate the housing market.

UK In Double Dip Recession

The Organisation for Economic Co-operation and Development (OECD) has reported that the UK economy shrank in the first three months of the year.

Between January and March economic output fell, compared to the previous quarter, at an annual rate of -0.4%.

Given that there were three months of negative growth at the end of 2011, this means that the UK is now yet again officially in recession (ie a double dipper).

The Abyss

Starting the week as it will most surely go on, the OECD has given an urgent warning that Europe, and by definition the global economy, is standing on the edge of the abyss.

The OECD stated that the failure of EU leaders to stem the crisis could "massively escalate economic disruption" and end in "highly devastating outcomes".

"The euro area crisis represents the key risk to the world economy at present."

Needless to say, the Eurozone seems determined to dig its (and the global economy's) own grave, and continues to sow the seeds of confusion and despair.

Die Welt reports that Germany is considering issuing joint 'elite bonds' with five fellow AAA nations. That of course means the creation of a two speed Eurozone. Needless to say the German government has issued a hasty denial of the plan.

Which, given that France may well lose its AAA rating, is doubtless welcome news for the French (assuming that is, the Germans are being truthful in their denial).

Meanwhile in Washington, Barack Obama will today meet European Council president Herman Van Rompuy and European Commission president José Manuel Barroso at the annual EU-US summit.

Good luck with that then!

Interest Rates

The OECD are calling for UK interest rates to be raised by the year end.

What's the betting that, if they are raised, the rates for savers are not raised?

In Denial

Alistair Darling has rejected claims from the Organisation for Economic Cooperation and Development (OECD) that the UK economy will not pull out of recession until 2010.

The OECD claim that the UK economy will record zero growth in the final quarter of this year, while the eurozone and the US will score two quarters of growth.

Darling, on Radio 4, said:

"The OECD has made predictions in the past ... Some have turned out not to be spot on

My prediction in the budget was that this country would come out of recession around the turn of the year. I hold to that view."

The trouble is that this government has been remarkably inept in "predicting" this crisis, in reacting to this crisis in a timely manner and in ensuring that there were sufficient reserves to manage this crisis.

Why should their predictions be any better than the OECD?

Why should we believe them?

Lagging Behind

It should come as no surprise to learn that the Organisation for Economic Co-operation and Development (OECD) has predicted that Britain will lag the other leading industrialised countries as they come out of recession.

The OECD expects the UK economy to contract by 4.7% this year, compared with a predicted Euronzone contraction of 3.9%.

The OECD predict that Canada will contract by 2.5%, and the US by 2.8%.

The OECD predicts that the US and eurozone will return to economic growth during the third quarter of 2009. However, the laggardly UK will not return to economic growth until 2010 next year.

This poor performance is somewhat "embarrassing" for Grodon Brown in the run up to an election.

Decision Day

In less than an hour the Bank of England Monetary Policy Committee will announce their decision about interest rates.

Most pundits expect them to remain unchanged. However, the decision comes against the backdrop of Darling's suicidal warning about the state of the economy over the weekend, the announcement by the OECD that we are facing recession, Brown's ineffectual economic revival package and figures released by the Halifax that show that house prices fell by 12.7% in the year to August.

Given the above, one wonders quite how bad things must become before the MPC is prompted to cutting rates.

If and when they do, it might be the time to really panic!