Saving by Spending more - not only in Britain

There is talk that the UK government may subsidise first-time home buyers. Apart from problems of policing the eligibility one has to ask how this proposal fits in with the urgent - not to say existential - need to bring public spending under control. Like Germany the UK benefits from the fact that the flight out of countries that are perceived as unstable makes it a 'safe haven' as capital has to be invested somewhere. This effect is similar to the one in the foreign exchange markets where the sale of one currency necessitates the purchase of another one - even if that one has blemishes as well. It is all a relative game, but the situation may one day change, perceptions or facts, and suddenly the UK will be exposed with all its weaknesses. Spending is still rising, despite all pronouncements to the contrary, and no one seems to have the will to impose fair, balanced and effective spending discipline. So all those putting their faith - and money - into the UK markets have been warned!