Shaw Capital Management Boiler Room Tips: The Uk And The Budget: Shaw Capital Management Korea

buzz.yahoo.com — In the UK it is obvious that there is no possibility of continuing with budget deficits of some 13% of GDP, the present prospect if no action is taken. Unfortunately however the recent UK Budget produced no credible plan for dealing with this problem. It swept it into the lap of the new government after the May election, whatever that government is. The UK and the Budget: Shaw Capital Management Korea. The UK cannot delude themselves that rapid resumed growth will lead to a rapid return of the previous revenue streams. UK growth in most forecasts, ours included, is projected as slow. In our view there is a good reason: the continuing shortage of oil and raw materials worldwide prevents rapid growth for the world as a whole and since emerging market economies are continuing to grow rapidly that restricts the growth possibilities in countries like the UK and other developed countries. We are already seeing inflation spread into China and otheremerging countries, forcing a tightening of policy. It seems likely that this tightening will be enough to restrain world growth to rates that will not push commodity prices much higher. Related Coverage Shaw Capital Management: South Korea's Economy China's Economy: By Shaw Capital Management Korea Taiwan's Economy: By Shaw Capital Management Korea Shaw Capital Management And Financing So even the fast-growing world economies are being forced to limit their growth ambitions; as for the UK they are achieving recovery, but hardly enthusiastic growth. All this will only change when innovation in raw material use has freed up net world supplies. Fortunately the flexibility of the UK labour market has restricted the jobs fallout. Unemployment has peaked below 8% (just over 5% on the benefit-claimant measure) as people have opted for wage freezes or cuts and shorter hours so there is underemployment but not the disaster of double-digit unemployment rates. But this environment is one in which tax revenues will not recover mu Apr 8, 2011