Tuesday 1 February 2011

And now for the good news...

After all the doom and gloom in recent weeks, most of which was concocted by Labour and their chums in much of the media, the confidence that some of us showed in riding out the storm (well, snow) has been shown to be justified.

Instead of "talking Britain down", as John Major used to say when he was Prime Minister, some commentators (generally those who understand something of how economies operate) were content to let short-term difficulties, outside human control, work their way out of the equation.

Thus it comes as no surprise today, the first day after the end of January 2011, to learn this:

"UK manufacturing PMI rose to record high in Jan. Expansion in UK manufacturing & employment highest for 19 years"

Here is the News Release (PDF file) from the Chartered Institute of Marketing and Supply. Note that we are cautioned that inflationary pressures 'continue to surge', but that is what those in the know expected for the time being.

A large cause of that surge has been the huge Quantitative Easing (i.e. printing money, which is then devalued in the world market from where we buy so much) during Gordon Brown's premiership, some of which has had to be continued for a while after he resigned as PM (one of Brown's many nasty legacies).

As always, the key point is that the rot has been slowed in some areas, halted in others, and the British economy continues on track to a slow, hard but eventual recovery. We've seen it before, during the Thatcher years, and Labour tried all the tricks then that they are attempting now.

This is why we should take no notice of them and continue to repair the damage, just as was done during the '80s. Now, as then, this is the only realistic way to recover, ever.

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