Trouble In Paradise ?

New data released this week suggests that the 'untouchable' economies of the Far East may be showing signs of faltering.

The Purchasing Managers’ Index in China dipped to a two-year low in June, while manufacturing in India grew at its lowest rate in nine months.

With manufacturing staggering and persistent inflation, China's 'recession proof' status may soon have to be revoked. Pit this against the backdrop of an impending European debt crisis and uncertainty across the Atlantic and the global recovery appears as shaky as ever.

This is far from good news for the rest of the world and should not be viewed as a chance for catch up. Besides the obvious trade disadvantages, while still an inconceivable outcome, a Chinese downturn would surely be considered the first horseman of the apocalypse.

The High Price of Low Prices - Britain's Not Paying It

The MPC held firm this week, maintaining interest rates at 0.5% for the 27^th consecutive month. However with inflation more than double its target rate, one does begin to wonder just what Mervyn King has in mind for the economy.

Throughout 2011, The Bank of England appears to have prioritised the stability of the financial sector above its obligation to maintain CPI at 2%.

Mervyn King and his fellow MPC members appear to have sat down one evening last December and said “You know what? Screw inflation targeting, if this country’s going to have any hope of a recovering, growth and employment must take priority over prices for the next 18 months”

Theoretically, with inflation at 4.5% in April, interest rates should have gone up this month. If all the MPC had on its mind were prices, monetary tightening would have come months ago, as it did in Europe.

The Albus Dumbledore of banking is coaxing an economy in the adolescence of its recovery towards its prosperous destiny, that is, to return to stable, sustainable growth as soon as possible. Whether this be at the expense of 7% inflation by the end of the year, is another matter.

Welcome

After much deliberation I decided that the lexical artilery at my disposal could not provide a suitable name for this page. A new word was in order!

Econcentrate / ɛ-kɒn-sən-treɪt/ - Verb

To focus financially, globally and economically

Etymological craftsmanship aside, on this page you may expect to find a modern take on all the latest financial and economic issues, bar a lapse in my personal Econcentration. 

Enjoy!