Sussex G20 summit points to Spain

The world finance ministers summit in Sussex called by the UK’s McBroon Government wasn’t much of a confidence builder as many of the G20 delegates paid lip service only to a “new deal” communal approach to solving threats to our fiscal wellbeing.

There was loads of jaw-jaw, but little likelihood of changes in the international law-law, to end the current crisis and prevent another with the setting up of a world-wide regulator to watch over the ongoing antics of the bankers and failed regulators, the SFA in the UK and SEC in the US.

So at street level it’s every man for himself then, as the current McBroon efforts don’t seem to be working terribly well with few people feeling any degree of confidence in their own financial futures. If interest-free mortgages and printing billions of extra pounds doesn’t get the system going we may have the twin evils of “Inflation” or “Deflation” to deal with as jobs, pensions and savings flush down the pan.

Some experts say the former sends the price of goods soaring, buying power crashing and deters investment and saving.

With deflation, shops prices come down, spending power goes up, but jobs, shares and house prices goes down. Think Great Depression in the Thirties and Japan in the Nineties.

The pundits, like our political masters know not which way the dice will fall in the great gamble at the troubled McBroon Casino.

Whichever way it goes, the worst hit are likely to be people in their Fifties thinking about retirement as annuity rates crash and share holdings weaken because the FT Index is way down and showing little sign of early recovery.

Pensioners may benefit from lower mortgage debt, but lower interest rates does not help them make ends meet. In fact the Institute of Fiscal Studies (IFS) reckons they spend more of their budget on food and heating, items that continue to increase in price.

So what to do and where to go for the over-50s?

Think about moving to Spain for British winters or even fulltime, as the cost of living is a third less than the UK and the sun shines 300 days of the year. Medicare is as good as the UK and the healthier lifestyle may mean you need less of it? The Spanish Government have managed their economy better and have billions put away for the rainy season that is upon us.

Property prices have crashed and 1,000 people a day buy a home in Spain, more than in the UK, even in the good times. There are some excellent Spanish bank repossessions in stable residential areas close to the beach and a good road and rail system means the wonderful Spanish culture can be explored if sitting on the terrace becomes too boring.

You can keep up with the latest economic news back home in Blighty as you read the day’s Telegraph or Daily Mail on the train or under a shady poolside palm tree.