Vince cable warns of economic woe

21 May 2011, last updated at 01: 02 GMT  the financial crisis had made "extensive damage", said Vince cable business Secretary Vin...

21 May 2011, last updated at 01: 02 GMT  the financial crisis had made "extensive damage", said Vince cable business Secretary Vince cable says it is a challenge for the Government publicly declared a State of the economy, how badly in is.

He told the guardian, the country due to the banking collapse and the recession - and was poorer by a "squeeze" out of the changing global economy.


Is part of the United Kingdom no longer the "price-setters" on world markets, he said.


He warned "We a very, very profound crisis had, which take a long time of digging,".


Speaking about the State of the economy, Mr cable said: "it is a challenge for us, it is better to communicate." I don't think that you will understand that the British economy 6 or 7% rejected...


"We are actually a poorer country, mainly because of the recession, banking the crash that followed it, and we are partly due to the squeeze now see from the changing balance of the world economy."


He added: "Britain is no longer one of the worldwide price setter." We take our prices of international commodities markets driven by China and India.


"This is something we have to life and to adjust." It is painful. It is a challenge for us in the Government. "The political class as a whole is not preparing the public for how massive is the problem."

'Model failed'

"Ultimately it back to this defensive and not accept, that United Kingdom is a model that worked... makes failed for us, the public of the extent of the problem to get through difficult." "This is to everyone's loss."


He said Britain's deficit was "only one of the Symptoms" of the financial crisis.


"We had the complete collapse of a model based on consumer spending, a housing bubble, a preponderance of banking system - three banks, each of them with a balance greater than the British economy."


"It was a disaster waiting to happen and it could happen." "It has done significant damage and there is damage, which is a long time to the last."


source:www.bbc.co.uk

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