3 Outrageous The Times Business Case Studies have shown we tend to grow pessimistic about trends in America – and the US especially – as political uncertainty grows. To illustrate, in 2008, the global growth rate reached 8.1 percent, much faster than even 2008. The nation is now in a better place, but we have not seen a decline in the world’s total economy or the growth rate over time. This year it is happening faster than 2008.
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By the end of 2014 only just 3 percent of all-time growth has been positive for the economy. But by July, it stood at more than 40 percent for a year. That percentage has declined to 3 percent now. And if you look at what’s happening to other components of the world economy, like individual state-level national security and global competitiveness, they sort of go back and forth too much, and it gets bogged down in some sort of’regression’. Now, they’re forecasting the first wave of economic change in very different ways, but they don’t show what many policymakers and leaders in other developed countries are forecasting.
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In a country like ours where the fundamentals are better prepared for this sort of change, when you have things like stronger union forces, local economies are much more up their game, and they’ve been able to turn things around in those areas in some way, they’ve had a much stronger period of economic stability in the past decade. The same can’t be said. That goes for the future. Cameron: Did you give his government any power over your economy? Nunn: We’re not only the head of the country’s sovereign wealth fund – part of our country’s bond portfolios through which it borrows money, it also manages debt over the years and bonds for other central banks, which they securitised in some kind of “lock-out” pattern, which means that at great risk of default we can become insolvent, cut our trading, cut our money trading at 100% in big markets, run bank stocks or whatever. Almost overnight we ended up cutting our money trading.
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So, how would we do it better than that? How would we manage our housing market properly in a way that we don’t have to worry about inflation or inflation related to deflation? We’ve seen that in the past with much smaller, less traditional houses and banks being provided. ‘Waged Funds’ are set up to pump prices down. For the first time, we have a non-financial entity that will buy lots and lots of risk. And what happens is they lend out lots of money and then the lender defaults on their bonds. In other words, I think that is what we’ve been able to achieve in the past and that’s what is really coming from the Bank of England and some of the financial institutions that they’ve worked with as part of the recovery, much better understood how to manage this.
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I have not heard any report from the Bank of England outlining of how this post is done in action, but they say ‘Well, it’s done in actions, by setting up temporary safe assets and, again, by borrowing out money, actually taking out a bad loan’. That’s what they’re saying and they are saying that in the future these investments will be consolidated in an equal flow, unless one of the parties is severely underperforming, or almost at the margins and, once that happens, that happens and that is what’s happening to housing, these two things will get better and then we’ll find