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Closer to the edge

Closer to the edge

There may well be worse to come.  With the end of the various government support schemes, redundancies have shot up once more.  According to the BBC:Earlier this year when the establishment media was running fear stories about excess savings, the opening up of the economy was predicted to result in a massive consumer boom.  It didn’t happen.  Rather, as happened in the summer of 2020, people emerged from house arrest in need of a haircut, some new – mostly larger – clothing, and a thirst for a pint of beer down the pub.  Once these desires had been sated, most returned to their homes and continued with lockdown spending habits that have now become ingrained.  Not least because, while a small minority at the top may have accumulated £125bn in savings since the first lockdown, the majority of us had been running up even more debt.  The people with savings were hanging onto them while the crisis continued.  Everyone else was unable to consume anyway.  And so, after a brief rally in July, growth fell in August.  Today the UK economy is officially still 0.8 percent smaller than at the start of the pandemic.

“The number of businesses that failed in England and Wales last month was the largest since the Covid pandemic began.  Company insolvencies in September totalled 1,446, increasing from 1,349 in August and 56% higher than the same month last year, data from the Insolvency Service shows…

“The Bank of England earlier this month said one third of small businesses in the UK are classed as ‘highly indebted’, where their debt levels are more than 10 times their cash balances.”

…click on the above link to read the rest of the article…

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