Yesterday Mervyn King said the Bank of England’s predictions for growth in yesterday’s inflation report were “not inconsistent” with two quarters of zero or negative growth – the economist’s technical definition of a recession. For a central banker, that is strong language.

Meanwhile on planet Brown the Chancellor, Alistair Darling, claimed yesterday that “the fundamentals of the British economy are strong because of what we have done over the last 10 years. They will remain strong…. because of the robustness of our economy, I am confident that we can return to growth and we can keep inflation down to target.”
In reality inflation is now higher than in 1997 when Gordon took over, the ballooning budget deficit is 2.8% – the largest in Western Europe and nearly triple the pan-EU deficit average of 1.1%. Real incomes are now falling…

The Citizens Advice Bureau has just released a report which says “The number of county court actions for mortgage and secured loans has also risen steeply over the last few years. Between 2004 and 2006, the number of mortgage possession claims has increased by nearly 70% and the number of possession orders actually made by 94%. The number of possession actions in 2006 is now similar to that seen at the beginning of the mortgage repossession crisis in 1990.” Somebody should dig out that old Labour Party general election poster which blamed house repossessions on Hague and Portillo, changing the pictures to Brown and Darling. So much for an end to boom and bust…