2017
Charles Stanley is a respected firm of stockbrokers. Its analysts have provided several forecasts for managers of commercial businesses. These are: (1) companies whose shares are quoted on the UK’s blue-chip list (FTSE) will reach a series of all-time highs; (2) the United States’ Russell 2000 is the index to back; (3) but defensive shares (proxies for bonds) could remain weak. Interest rates are likely to rise; (4) fears of inflation in the UK are overdone; (5) the price of oil will not plunge again; (6) emergent markets will shake-off gloom.
Debt. Danger?
The Government’s and its agencies’ obsession with public finance seems to have moved emphasis from private indebtedness, which is arguably more dangerous for a country’s economic stability. The Office for National Statistics’ figures show that the total of unsecured debt reached an all-time high at £349 billion last September. The Trades Union Congress (TUC) says the rise in borrowing has been caused by stagnated wages. Unsecured financial liabilities have grown to 27.4% of household income, the highest level in eight years. This situation must be in the minds of the Monetary Policy Committee when they consider any proposal to raise interest rates. Some of them will be concerned that a new economic shock or slower growth in wages could make it more difficult for earners to meet their commitments. Additional defaults would have severe implications for the financial system.
What needs to be done?
Jeremy Hunt MP, Secretary of State for Health, has called for ‘an honest discussion with the public’ about the purpose of Accident and Emergency departments in this country’s general hospitals. The debate needs to be wider. Leading clinicians for the Royal College of Physicians have written to the Prime Minister setting out their concerns. Others have asked her to convene COBRA-style meetings to address the situation. The Chairpersons of three Select Committees from the House of Commons have urged the Prime Minister to seek cross-party consensus of health and social care. The evidence indicates a need for urgent action.
Comparison* ‘It’s obvious that women are smarter than men. Think about it – diamonds are a girl’s best friend; man’s best friend is a dog.’ Joan Rivers (1933-2014); American writer, actor and producer. Quoted in The Wall Street Journal and The Week.
Excuses* ‘What good are laurels if you can’t rest on them?’ Tom Lehrer (1928 -); retired American singer and songwriter. Quoted in The Observer.