John Redwood

Debt is a funny thing for markets. Have too little of it, and spirits sag. Share prices perform badly and investors worry there will be insufficient growth.

Cutting deficits is popular in the heavily indebted Western world. Some countries are being forced to, as lenders decline to lend them more money at realistic interest rates.

In March China published its 12th five-year plan. The word ‘plan' has been adjusted to take into account the growing role of the private sector in economic growth.

The True Finns party has just won a stronger position in Finnish politics. This has a wider significance, because their platform includes refusing to join in any EU-wide bailout of Portugal.

Sir John Vickers produced an elegant and sensible Interim Report into the banking industry. He concentrated on two main problems.

Investors have got over the wobbles of February. The ides of March were good for the bulls. The main investors and commentators are in love with risk again.

The UK's Office of Budget Responsibility (OBR) has recently published its new forecasts. Among them is one that deserves more attention than it has received to date.

Much of the commentary on the UK economy has been looking at the public sector squeeze, which has not yet started according to the numbers. It has ignored the private sector squeeze, which is long and deep.

The Western powers suddenly look powerless. The Arab revolts have electrified the news and shocked the markets.

We are living through a phase when investors say they like Western shares and dislike emerging market shares.