The first real cost of BROWN's BAILOUT has become clear today.

The POUND is now $1.51 against $2.06 in the summer.

This means that our money in our pocket has been devalued by BROWN printing the extra Trillion to bail out the banks. ( Against the Euro it has gone down even more )

The effect of this is that UK shoppers will pay 25% more for any imported goods from December onwards.

Retailers however will not be able to pass much of this on to customers - so we will see loads of shops and chains of shops going under in the first three months of next year - with possibly Half a Million jobs.

The MEDIA led by New Labour will claim that this is a Global Problem.

It quite simply is one of BROWN's own making. He LED the world to print Bailout Money thus reducing the weak currencies.

Brown claims to be an economic miracle worker - but this latest disaster is typical of his lack of ability in running the economy. His claim is not backed up by the facts.

The UK is going into a terrible recession next year - much of it engineered by Brown who does not understand economic cause and effect.

As late as July Brown was saying growth for next year and that we were in a great position. How wrong he was.

For anyone who lived through the 81 and 90 recessions they will seem like great times compared to next year.

3 million unemployed plus 3 million on incapacity by next summer will bring the percentage of working age people to 2 in 10 of the population. Double the 1981 UB40 low point last century.

Luckily the bankers are all sitting nicely at home with their billions and bonuses !! At least they are still happy.

well, this may not necessarrily be a bad thing.

With the pound so high, life was becoming ever more difficult for our manufacturing and overseas trade.

It benefits exporters - but that is about it. The public will find their holidays will be 25% more expensive.....when we buy goods they will go up by 25% and if retailers cant pass that on they will go out of business.

I can see many more downsides to a devaluation than upsides. History shows us that deflation cause unemployment - the early 80s and the 30s both saw mass unemployment caused by deflation of the currency and in turn that leads to deflation in the retail sector - which basically means profits are slashed and companies go under.

The Bank of England should have cut rates in the spring but BROWN leant on them not to - by saying we would have growth next year.......anyone could see the crunch was biting even then.......

Unemployment and company and retail bankruptacies will rocket in January to April next year because of this policy. Nothing can stop it - the tax giveaway is no good if you have lost your job and dont pay tax - those in work will pay off debt with any money not spend. Silly idea by Darling and shows how stupid the New Labour economic team really are - they dont have a clue.

The only fiscal stimulus which might work is a VAT cut of 5% or more. But even then retail has already gone to a 33% ( 3 for 2 ) state of play on the High Street this week in almost every big store.....and the tills still arent jingling.......

2009 will see an immense recession which will dwarf anything ANY of us will ever have experienced before - so get financially prepared for next year now in order to survive it.

I still think - scrap VAT for December and January.

Huge boost for sales and Christmas.

It would cost a fortune but no more than other bailouts.

17.5% less? I'd go on a spending spree.

Of course, in February life would slump again, but who cares?

Scrapping VAT for two months is a great idea, at least people would spend more at Xmas and the January sales. It would bring a temporary feel-good factor and may improve the economy.

I still believe the media has to be accountable for this as well for shoving this down our throats on a nightly basis.

Because everyone can see that slashing VAT is probably the only thing that will work - then knowing our politicians they wont do it !!!

I actually agree totally with you JK - a VAT cut means people WITH money will go out and spend thus reviving the economy.

Cutting income tax will make no difference because it takes a long time to come into pay packets and workers are saving at the moment rather than spending or cutting debt.

If VAT could be cut for the whole of 2009 I would be able to expand my business by 20% and I could invest more......tax cuts would make little difference.