Double Dip Recession

Yes the Yellow Peril might get upset. I think the chinese are beginning to realise though that repayment of the debt is supping demand in the economy they are also in decline. Manufacturing is effected.

Did you honestly think that the austerity measures would mean a straight recovery?

The road to recovery will be bumpy and things were obviously going to get worse before they get better.

Mini. Writing off debt theoretically would work but in practice sends out the wrong signals and would in itself have a huge impact on the economy. Plus I doubt our lenders would agree. It would have to happen globally. And since the Chinese seem to be the largest owners of government debt, I doubt they'd agree.

Julia, do you think they'll start to build a wall north of Watford?

This Governments response seems to create an even greater divide, now they want to make it geographical as well as economic.

The banks created debt out of mickey mouse money, through leverage, rather than lending to a ratio of 4:1 it became 30:1, no wonder we were awash with liquidity. The answer is not to bail out the banks but right off national debt, otherwise the lenders are mopping up profit from the mess they created.

The whole World is slipping into recession again. The financial crisis is far from over. Printing of huge amounts of money by central banks has created inflation but not solved the underlying problems of too much private and public debt.

It is not the Coalition's fault. We have an open economy and we cannot make ourselves immune from what is happening in the rest of the world.

That said, there are plenty of things the Coalition has done that are the wrong response and have imposed austerity on the poorest people and bailed out the very richest. We cannot avoid a recesison in the rest of the world but we can make sure the burden is distributed more fairly.... as we are all in this together.

Continue social cleansing. Derby will get a bit crowded. Cut benefits for disabled children a bit more.