The main results of this fiscal year note is the revival of activity from the first quarter, although it is true that with very weak levels that do not yet appear overly optimistic about the future immediately. Both the ISIN as the actual GDP data show a similar pattern, signaling the end of the recession but do not show the enthusiasm that could be expected.
The reasons for this weakness are related to the depth of the crisis, but also with the uncertainty of the English economic agents and financial nature of the conflict. In a debt deflation scenario adjustment becomes more complicated and lengthy, since the common circumstances of any crisis, we add financial rigidities. Japan has already experienced something similar during the last decade of last century, but aggravated by a deflationary process in the final price of the bins and services Nipponese.
other hand, the adjustment in the English economy is primed to employment, causing an unprecedented rise in the unemployment rate and the entry at risk of economic exclusion of a significant number of citizens. This reaction could say that traditional, was intensified when the construction sector (which has been hardest hit) very intensive job. The situation of bubble in which he was the housing market and the large number of sectors and related activities has amplified the effects and has served as a feedback system for their own financial crisis.
All of these factors mean that the future scenario is not very clear and, despite the green shoots that have been observed throughout 2010, both analysts and international capital markets themselves, maintain serious doubts about the ability of the English economy recover.
a clear exercise in search of the sympathy of those financial markets, the English government has announced and implemented a series of reforms aimed, firstly, to balance public finances in the short to medium term and, second, to relax some of the bottlenecks in the national economy. Many of these measures will have some impact on the sacrifices added that citizens must suffer during this process, others could be an opportunity to reorder the public services and expertise of each of the administrations, avoiding as far as possible the ongoing conflicts and overlaps.
This period we are living is, from the standpoint of the curious observer, a test for Western governments. The game is redesigning balances, leading to the growing power of so-called emerging countries, now essential to elucidate the resolution of this Gordian knot that is the global crisis. China, India and Brazil have become major international creditors. Are the countries that financed the deficit U.S. Foreign and Spain and now they should sacrifice some of its surplus position to leave room for improvement in Western economies. The problem comes when China is not willing to sacrifice keeps tight control over its currency artificially undervalued.
The cards are on the table, and 2011 should be the year that begin to glimpse some solutions, which do not yet know what the election is to be taken by governments and markets, even if there will be a loss of power one in the hands of others, so if we are sure of is that the future is starting to write now.
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