Kerching! But This Spending Boom Won't Last Forever

Daily MailOctober 20, 2006

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Summary


YOU and I may not have much, but the world is awash with money. Great quantities of it are sloshing around the international financial system - at the fastest rate for 16 years - encouraged by low interest rates, booming company profits and lavish government spending.

Indeed, if there's one thing to remember about the way the economy works in 2006, it's the volume of money gushing about with such vigour that it is a bit like staying in an old house when everybody fills their bath at the same time. Funny clanking and slurping noises echo about the place and wise observers fear it could all go wrong.

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Kerching! But This Spending Boom Won't Last Forever

The abundant supply of money - growing here at nearly 14 per cent a year - helps explain many things. It is the reason that the economy continues to defy gravity, growing for 56 quarters in a row. This week, official figures showed that the ...

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