Tuesday, 6 January 2015

Annus mirabilis

It's shaping up to be a wonderful year for the government. Suddenly a whole sheaf of economic numbers have turned good. Oil has dropped from roughly $100 per barrel a few months ago to $50 today as the Saudis try to bankrupt American shale oil producers; the Euro has tumbled on fears that Greece may elect the commies and leave the Euro, and the FTSE seems to have defied the rest of the world and not crashed because the UK is seen as a safe place for your wealth, be your wealth houses or stocks and shares.

Falling oil prices will permeate our economy and make us all feel, and actually be, richer. It's not just  filling up the car at the petrol station that is so much easier - the oil price affects the price of just about everything. Food will be cheaper; electricity will be cheaper; clothes will be cheaper, and when the staples get cheaper - everything else also gets cheaper.

Meanwhile, since we import far more from the EU than we export to them, the falling Euro will further reduce the price of stuff.

This will all feed through into more jobs and bigger pay rises for the Great British public.

And there is a general election coming. The government just has to hope that everything stays rosy for at least four months. There is no guarantee of this though. Four months is plenty of time for the Greeks to pull back from the edge; the Saudis to complete their decapitation maneuver and the whole glorious future to unraffle.

So, fingers crossed, eh, George?

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