Treble Dip Anyone?

Interesting times ahead……

The UK’s biggest buyers of our goods / services are the Eurozone and US. Like it or not, they are a big deal to our economy. We are heavily reliant on them and this is the key reason that our Government spends far too much time schmoozing with them…..

Big news this week then……

Eurozone

The Eurozone has returned to recession. There is no other way to dress this up other than to say that there will be less money to buy our goods / services.   

US

The figures on which parties will make up the US Government have been finalised this week. We already know that the US will reduce total spending next year by 4% and this will cause shockwaves around the world and lead many economies into recession that are reliant on the US buying their goods / services. That’s us……bugger. The reduction will happen unless the Senate passes a bill to reduce this reduction (I think that works stick with me!) in spending by a lower amount……i.e. 2 - 3%.  The problem though is that Obama’s party occupy 53 seats in the Senate, leaving them unable to pass their own ideas due to the 45 Republican seats. Unless a cross party agreement takes place, a Mexican stand-off will see the 4% reduction become live on 1 January 2013.

 

Not looking good for our two biggest customers then.

So, despite all the spin and chest thumping from Westminster that our economy was in great shape when we limped out of recession a few weeks ago, there is a pretty realistic chance we will head back into recession quicker than you can say treble dip.

Not really the sort of hat trick anyone wants on their CV.