{"id":6589,"date":"2013-01-27T07:46:24","date_gmt":"2013-01-27T12:46:24","guid":{"rendered":"http:\/\/goldstocksforex.com\/?p=6589"},"modified":"2013-01-27T07:46:24","modified_gmt":"2013-01-27T12:46:24","slug":"financial-hangover-is-britains-biggest-growth-headache","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2013\/01\/27\/financial-hangover-is-britains-biggest-growth-headache\/","title":{"rendered":"Financial hangover is Britain&#039;s biggest growth headache"},"content":{"rendered":"<p>David smith writes:<\/p>\n<blockquote style=\"background-color:#ddddff;\">\n<p>Sir Mervyn King, in Tuesday\u2019s final regional speech as Bank governor, in Belfast, barely mentioned fiscal policy as a factor in the slow recovery. Instead, as well as the high-inflation squeeze on real take-home pay and the eurozone, he focused on another financial factor.<\/p>\n<p>The problem, he said, was \u201cthe extent to which the balance sheets of the major UK banks had grown before the crisis hit, and had been financed primarily by borrowing.<\/p>\n<p>\u201cSo the subsequent reduction in bank lending \u2013 the deleveraging \u2013 was greater here than in many other countries. That deleveraging has as its counterpart a reduction in the amount of (broad) money in the economy and a reduced willingness on the part of banks to expand lending.\u201d<\/p>\n<\/blockquote>\n<p>Read more at <a href='http:\/\/www.economicsuk.com\/blog\/001820.html'>David Smith&#039;s EconomicsUK.com: Financial hangover is Britain&#039;s biggest growth headache<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>David smith writes: Sir Mervyn King, in Tuesday\u2019s final regional speech as Bank governor, in Belfast, barely mentioned fiscal policy as a factor in the slow recovery. Instead, as well as the high-inflation squeeze on real take-home pay and the eurozone, he focused on another financial factor. The problem, he said, was \u201cthe extent to &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/thepatientinvestor.com\/index.php\/2013\/01\/27\/financial-hangover-is-britains-biggest-growth-headache\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Financial hangover is Britain&#039;s biggest growth headache&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[31,33],"tags":[993,2117],"class_list":["post-6589","post","type-post","status-publish","format-standard","hentry","category-the-fed-banks-interest-rates","category-uk-europe-countries-regions","tag-deleveraging","tag-liquidity"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Financial hangover is Britain&#039;s biggest growth headache - the patient investor<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Financial hangover is Britain&#039;s biggest growth headache - the patient investor\" \/>\n<meta property=\"og:description\" content=\"David smith writes: Sir Mervyn King, in Tuesday\u2019s final regional speech as Bank governor, in Belfast, barely mentioned fiscal policy as a factor in the slow recovery. Instead, as well as the high-inflation squeeze on real take-home pay and the eurozone, he focused on another financial factor. 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He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters. Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis. Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008\/2009 and 2020 bear markets well ahead of actual events. He founded PVT Capital (AFSL No. 546090) in May 2023, which offers investment strategy and advice to wholesale clients.\",\"sameAs\":[\"https:\/\/facebook.com\/people\/The-Patient-Investor\/61572934660810\/\",\"https:\/\/www.instagram.com\/colin_thepatientinvestor\",\"https:\/\/au.linkedin.com\/in\/colintwiggs\"],\"url\":\"https:\/\/thepatientinvestor.com\/index.php\/author\/investor\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Financial hangover is Britain&#039;s biggest growth headache - the patient investor","robots":{"index":"noindex","follow":"follow"},"og_locale":"en_US","og_type":"article","og_title":"Financial hangover is Britain&#039;s biggest growth headache - the patient investor","og_description":"David smith writes: Sir Mervyn King, in Tuesday\u2019s final regional speech as Bank governor, in Belfast, barely mentioned fiscal policy as a factor in the slow recovery. 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He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters. Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis. Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008\/2009 and 2020 bear markets well ahead of actual events. 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At San Francisco-based Wells, commercial and industrial loans rose 11% from a year earlier to $167 billion at Dec. 31, amid what Chief Financial Officer\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6377,"url":"https:\/\/thepatientinvestor.com\/index.php\/2012\/12\/05\/how-cancelling-central-banks-holdings-of-government-debt-could-be-a-useful-thing-ft-alphaville\/","url_meta":{"origin":6589,"position":1},"title":"How cancelling central banks\u2019 holdings of government debt could be a useful thing &#124; FT Alphaville","author":"Colin Twiggs","date":"December 5, 2012","format":false,"excerpt":"FT's Kate Mackenzie writes: Morgan Stanley cross-asset strategist Gerard Minack says the remarkable thing about developed economy deleveraging is how little of it has happened: The credit super-cycle ended four years ago, but leverage has hardly fallen in major economies: debt-to-GDP ratios remain historically high. Minack says the problem is\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2664,"url":"https:\/\/thepatientinvestor.com\/index.php\/2011\/12\/16\/mark-carney-growth-in-the-age-of-deleveraging\/","url_meta":{"origin":6589,"position":2},"title":"Mark Carney: Growth in the age of deleveraging","author":"ColinTwiggs","date":"December 16, 2011","format":false,"excerpt":"Today, American aggregate non-financial debt is at levels similar to those last seen in the midst of the Great Depression. At 250 per cent of GDP, that debt burden is equivalent to almost US$120,000 for every American (Chart 1). .....backsliding on financial reform is not a solution to current problems.\u2026","rel":"","context":"In &quot;China &amp; HK&quot;","block_context":{"text":"China &amp; HK","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/china-hk\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":27803,"url":"https:\/\/thepatientinvestor.com\/index.php\/2021\/09\/09\/low-interest-rates-and-the-debt-trap\/","url_meta":{"origin":6589,"position":3},"title":"Low interest rates and the debt trap","author":"Colin Twiggs","date":"September 9, 2021","format":false,"excerpt":"Since 1980, debt levels have more than doubled, from 1.4 times GDP to more than 2.8 in Q1 this year. The rise has been facilitated (and encouraged) by a sharp fall in long-term interest rates, with 10-year Treasury yields falling from a peak of close to 16% in September 1981\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6135,"url":"https:\/\/thepatientinvestor.com\/index.php\/2012\/11\/12\/resolving-the-crisis-and-restoring-healthy-growth-why-deleveraging-matters-david-lipton-imf\/","url_meta":{"origin":6589,"position":4},"title":"Resolving The Crisis And Restoring Healthy Growth: Why Deleveraging Matters? &#124; David Lipton &#124; IMF","author":"Colin Twiggs","date":"November 12, 2012","format":false,"excerpt":"David Lipton, IMF First Deputy Managing Director writes that when G20 leaders met at the height of the GFC they had two simple objectives: i) to resolve the crisis; and ii) to make sure it did not happen again........ Progress has been hard in part because the measures called for\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6445,"url":"https:\/\/thepatientinvestor.com\/index.php\/2012\/12\/11\/the-feds-interest-rate-policies-are-damaging-rather-than-restoring-confidence-and-should-be-reversed\/","url_meta":{"origin":6589,"position":5},"title":"The Fed&#039;s interest rate policies are damaging rather than restoring confidence and should be reversed","author":"Colin Twiggs","date":"December 11, 2012","format":false,"excerpt":"Vince Foster at The Fiscal Times writes about this Wednesday's FOMC meeting: With Operation Twist due to expire at the end of the year and because the Fed is essentially out of short-term bonds with which to finance purchases, it is virtually assured that they will opt for outright purchases\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/6589","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/comments?post=6589"}],"version-history":[{"count":0,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/6589\/revisions"}],"wp:attachment":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/media?parent=6589"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/categories?post=6589"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/tags?post=6589"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}