The Monday morning news started the week in the same mood many of us feel about Mondays in general, miserable. It was due to the article David Cameron had written in the Guardian newspaper, warning that the global economy was facing another financial and economic crisis. And just when we thought we were doing so well!

Eurozone, Ukraine and IS

David Cameron warned that the world was facing another crisis because of instability in any parts of the world, namely the stagnant Eurozone economy, the growing crisis in Ukraine and the destabilising of the Middle East due to Islamic State. What was worse, and something Cameron didn’t expect, was when the paper was published, Japan, the world’s third biggest economy, announced an unexpected dip back into recession.

Look further afield and things don’t look much better. The rate of China and India’s growth is slowing and looks like it will continue to slow for a while. The other BRICS nations like Brazil and Russia are also slowing. Russia especially after a slew of economic sanctions following their meddling in Ukraine. The global outlook doesn’t look all that healthy. It is these foreign problems which is causing David Cameron a few economic headaches. Perhaps he sees difficulties coming and he’s preparing us for some bad news. Some are already accusing him of getting his excuses in early. But putting politics to one side, it is worth taking these worries into consideration.

Protective measures

In an economy that is now very much globalised, it is difficult to try and stay completely insulated from the troubles of the outside world. Indeed it can be quite frustrating when you consider how well the UK is doing. Why is it fair that the rest of the world’s problems could derail our own prosperity? It’s a fair question, but something we can’t do much about.

Still, David Cameron has said that we must do what we can here to protect ourselves from any outside shocks that could cause us damage. From my point of view, the only credible risk to our own economy right now would be if consumer confidence fell and people stopped spending. It is well documented that this recovery is underpinned by an increase in public expenditure. Not a bad thing, it has got the flow of money going again. But should that stop, we’ll be in for some bother. Especially those companies and industries considered to be making and selling big ticket items, including windows, doors and glazed extensions. So if David Cameron want’s to set some protective measures, they need to make sure that those measures keep consumer confidence and spending flowing.

Is it all hype?

You have to ask yourself, why now? As I have already said, others have accused David Cameron of getting his excuses in early, just in case things do go wrong. And maybe DC knows something we don’t. But I cannot see something as drastic as 2008 happening. It was the collaps of Lehman Brothers which set of a chain reaction around the world which nearly brought it to it’s knees. It needed the then Labour government to pump billions of pounds of public funds to keep the UK banks and economy afloat. The downside of this being a hugely increased deficit and the austerity programme we have endured for the past parliament.

However the banking system appears strong. Many pass regular stress-tests without issue. I would hope that something like the Lehman Brothers disaster won’t happen again. I think DC is right to point out that there are troubles in the world which could cause us some worries. But I also think that they’re not strong enough problems to have a 2008 style crisis imposed on us.