Clarke expects "dreadful" 2009

26/01/2009

Shadow business secretary Ken Clarke expects difficult times ahead - but doesn't think the UK will go bust.

The Tory MP said that he expects the economic news to be "dreadful" this year and that he is "gloomy" about prospects of recovery.

Speaking to the BBC, he added that the prospect of an economic "calamity" and collapse of the UK was not "realistic".

Mr Clarke's views seemingly contradict those of party leader David Cameron - who warned last week that Britain was at risk of going bankrupt.

The nation could go bust if it was looked on by foreign investors as a credit risk and they refused to lend it money any more.

One way of making a nation less credit-worthy is by increasing government spending without an increase in government revenue, boosting debts.

This debt increase is currently a strategy planned by global leaders including Gordon Brown and Barack Obama as a way of warding off the worst effects of the recession.

Tags; Current UK Economy, Recent Graduate Debt, Retirement Money Problems, Credit Card Lifestyle, Young Family Finances,

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