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Freddy Strauss can gauge the economy by the decline in the size of the diamond engagement rings he’s selling at his store in Miami’s Seybold building.
These days, happy couples are opting for a diamond between 3/4-karat and 1 karat — half the size of the average ring during boom times.
“I’m probably selling a similar amount, but they’re lower-priced,” Strauss said.
His business was down low double-digit percentages during the holiday season, normally one of the valentines gifts popular times for engagements. But Strauss actually is in a better position than many in the jewelry industry. Couples still get married in recessions, and most guys wouldn’t think of skipping the engagement ring if they want a happy marriage.
Skipping the gold bracelet or pair of diamond earrings is a different story. As job losses and the stock market crash take their toll on consumer confidence, jewelry has become a luxury many people can’t afford. Even those who can are scaling back.
And while Valentine’s Day is a popular time for jewelry purchases, most retailers aren’t expecting a boom in business this week.
“The environment isn’t encouraging for people to go out and spend flamboyantly on a $10,000 necklace,” said Pam Danziger, president of Unity Marketing, a firm that specializes in luxury consumer behavior.
Local retailers are finding ways to cope. Some are bringing in new, lower-priced merchandise, while others are marketing heavily to the ultra-wealthy.
Nationally, the picture is not pretty. Holiday jewelry sales during November and December were down 31 percent at Mayors stores, the bulk of which are located in South Florida. Tiffany was down 35 percent, Zale 19.6 percent. Sterling Jewelers, which owns Jared the Galleria of Jewelry and Kay Jewelers, was down 16.4 percent.
“This year’s holiday season has proven to be extremely difficult,” said a statement from Thomas A. tiffany accessories, president and chief executive of Birks & Mayors, which has co-headquarters in Tamarac. “The losses suffered by investors in the equity markets, historically low consumer confidence and lack of visibility in the economic outlook resulted in a significant reduction in consumer spending.”
Between 1,500 and 2,000 jewelry store locations closed in 2008, including the bankruptcies of major mall-based chains Whitehall and Friedman’s jewelers. And the industry is bracing for another difficult year in 2009.
“It’s survival mode,” said Rob Bates, senior editor of Jewelers Circular Keystone, a leading trade publication. “Companies are just trying to get through this and hope to make it out the other side. In this environment, being big isn’t necessarily an asset. A lot of the independents are doing much better by comparison.”
Being smaller has proven to be an advantage for many of South Florida’s independent jewelers, particularly those who have been in the market for decades and built relationships with their customers. They’re holding on, refocusing their merchandise and in some cases even seeing increases in business.
Jeff Malvin, president of Beverly’s Jewelers, saw the economy slowdown coming last spring and started adjusting the merchandise at his three Broward County stores so he was ready.
By the time the fourth quarter arrived, Malvin had brought in new showcases of lower-priced silver tiffany keys and other alternative metals in fashion-oriented styles. For Valentine’s Day, he’s promoting these products with ads, “Look like a million for under $100.”
“You’ve got to pull your head out of the sand and adapt to what’s happening,” said Malvin, whose sales were flat for 2008, but down for the holidays. “You have to have your finger on the pulse of your local neighborhood. We adjust to the customer’s needs. Women still want jewelry, but at a price point they can afford.”
H. Bredemeier, owner of H&H Jewels in Coconut Grove, has been able to spur business by helping clients remodel old jewelry or trade it in for credit on a new purchase.
“The last six months I’ve done more trades then I’ve done in the last two years,” Bredemeier said. His sales for 2008 were down 30 percent, but that follows a 23.5 percent jump in 2007.
“We’re still doing numbers like 2005,” he said. “We were making a living in 2005. You just have to readjust.”
For Ed Dikes, owner of Weston Jewelers, the adjustment has meant shifting his business in a different direction — toward the ultra-luxury consumer. He’s added more high-priced watches and diamond jewelry at prices of $25,000 and higher. Dikes has found that most of his customer demand is concentrated in that area, as well as some demand for items between $500 and $1,500.
What’s disappeared for Dykes and others is the aspirational client, who a couple years ago was trading up and living off a big bonus.
“The high net worth client seems to always have the money; they haven’t been hit as much,” said Dikes, whose strategy helped his business finish 2008 with a sales increase. “The person who was the $10,000 buyer can’t afford to make purchases anymore because they’re worried about making ends meat.”
The economy didn’t seem to be putting a damper on the spirits of the luxury consumers who came to celebrate Levinson Jewelers’ grand opening last week on Las Olas Boulevard. They sipped champagne and checked out items like a 37-karat emerald cut diamond ring for $6 million.
Karon and Lew Cohen were thrilled the Levinsons had found them the 16-karat, three-stone diamond ring they had been searching for.
“Whatever is not here, they can find it for you,” said Karon Cohen, a Miami Beach resident who was proudly displaying her new purchase. “They sell you jewelry that suits your personality, not based on just making a sale.”
Levinson customer Robert Weinstein is actually buying more jewelry these days for his fiancee, Karina Modrin.
“It’s a good investment,” said Weinstein, a Boca Raton resident who recently purchased a diamond necklace, earrings and engagement ring. “It’s like buying fine art. These are all solid commodities. Diamonds are only going to go up. It’s better than putting your money in the stock market.”
Weinstein isn’t the only one. Jewelers in South Florida who cater to the ultra-wealthy say they’ve seen an increase in customers looking to buy collectable watches, diamonds and gold as investments.
But those customers are being very picky about what they buy, said Sandy Hequin, owner of Morays valentines day jewelry in downtown Miami.
“Bling is out,” Hequin said. “Nobody wants to be flashy and call attention to themselves and make others feel bad. They want to be conservative. Classic, investment quality is what people want.”
The good news for South Florida’s jewelers is that even though buying habits are changing, many consumers are at least still spending.
“Miami has always been very different than any other market,” Hequin said. “We always have someone with money to spend.”
New models present impeccable features of a high orderDamas, the undisputed retailer of stylish watches and jewellery in the Middle East, showcases trendy diamond watches reflecting perfection, exclusivity and technical superiority. Adorned with flawless diamonds they create a sparkling aura of eternity, yet remain true to their brand ethos at the Damas Les Exclusives Boutiques.
These diamond watches are a major draw for fashionistas in the region. Falling under the category of jewellery watches they are distinguished by superlative modernity, design, beauty, exclusivity and mechanical performance which give these exceptional pieces their distinctive boldness. Some of the diamond watch brands exhibited at Damas includes Jaquet Droz, Montega, Quinting, Parmigiani, Varotti and Sarcar.
They are not only considered prestigious but pronounce the personal success of a person. These timepieces command respect and admiration for their perfect craftsmanship. These high-end diamond watches offer state-of-the-art functionality and reflect the cutting edge craftsmanship of enthusiastic master horologists who love new challenges. They carry out strict quality controls at every stage of production and thus are known to offer something really different and being recognised as worthy exponents of the noblest Swiss watchmaking traditions.
Mohammed Tawheed Abdullah, Managing Director of Damas, said: “Creating diamond watches is an unparalleled skill, handed down from generation to generation. Most of these watches are produced in the workshops of Geneva and consist of brilliant-cut diamonds from 0.5 to 1 carat. The setting of these noblest of all stones is designed to let the light shine unobstructed through each of its facets. Thus this magnificent gem sparkles at each turn of the wrist.
“What’s special about these exceptional watches is that they increase in value with age. Delicately set by hand, these jewelled timepieces testify to an exquisite knowledge of Swiss watchmaking that dates back well over a century. These signature instruments are an epitome of class and style. They speak of their creators’ mastery over their art and unmatchable dexterity.”
He added as the Middle East market is experiencing a surge in the high-end diamond watch segment, more and more people are now willing to spend on these unique timepieces. Those who buy them understand that they are investing in an ageless classic which has a personality of its own. The fashion conscious in the region who wish to make a chic statement, acquire these limited editions which offer them joy for a lifetime.
A diamond watch lasts forever, a true luxury in which the owner never has to consider purchasing another watch ever again, but of course, if they have the exorbitant amount of money it takes to purchase one watch then they will most likely buy another one eventually. Subtle in their style, superior in precision, these luxurious watches are an enviable acquisition. Watchmakers nowadays integrate aspects of jewellery into watches making them outstanding decorative accessories while retaining their sturdiness through technological advancement combining aesthetically pleasing and pioneering designs.
What makes these brands truly unusual is that the manufacturers of these timepieces have preserved their expertise. On the strength of their unprecedented technical superiority and attention to detail, these timepieces have become one of the most sought after items in the luxury market segment. They transcend the realms of traditional watchmaking and are extremely lavish in their style statement.
Though adorned with diamonds their beauty lies in the impeccable technique and subtly daring designs. They continue to inspire the fashion savvy in the region and across the globe with their contemporary styles and irresistible looks making them one of the most prestigious ambassadors in the watchmaking arena.
These unique timepieces are available at Damas Les Exclusive Boutiques in Saks Fifth Avenue, Burjuman; Emirates Towers; Burj Al Arab; and Mall of the Emirates clad in gold, silver and exquisite diamonds which gives them superior brilliance and sparkle.
About Damas:The journey of Damas began in 1907, and today it has grown from a UAE based company into a global fashion and jewellery network spanning UK, Italy, Libya, Turkey, Egypt, Sudan, Jordan, Maldives, India, Lebanon, and throughout the GCC countries with about 400 sales points worldwide. Damas houses internationally acclaimed jewellery and watch brands such as Tiffany & Co., Mikimoto, Daniel K, Gucci, Faberge, Carrera y Carrera, Paspaley, Pasquale Bruni, Roberto Coin, Fope, Chronoswiss, Parmigiani, Perrelet, Quinting, Montega, Frederique Constant, among many others. The innovative in-house collections include the majestic Bridal jewellery, exclusive jewellery brands such as Damas Cut, Boudoor, Hayati, Riwaya, Jawaher, Farasha, Fairouz, Harmony, Farfasha, Al Manthura; watch brands Varotti and Aquamarin; and a wide range of other classic and contemporary jewellery and watch collections. Quality consciousness, inspirational leadership and international reputation have led Damas to win prestigious awards including the exclusive De Beers Award 2000, 2004 and 2007 for jewellery design.
Launch of Hammerman ‘Jeweler to the Stars’ Broadens Assortment – One Dollar Opening Bid Gives Shoppers the Ultimate Valentines Day Gift Opportunity
SUNNYVALE, Calif., Feb. 1 /PRNewswire/ — First Auction today began the first of seven daily auctions of jewelry pieces from Hammerman Bros., a manufacturer for Tiffany, with opening bid prices starting at one dollar. These seven items, including necklaces, earrings and bracelets range in value from $4,200 to $19,000. This marks the first time that these fine pieces of jewelry are being offered online.
“Offering our customers the Hammerman jewelry collection normally found at an exclusive jewelry store exemplifies First Auction’s commitment to expanding the opportunities for auction retailing,” said Bill Lane, Chief Operating Officer of Internet Shopping Network. “Our goal is to give customers unique opportunities to save on the broadest assortment of merchandise,” added Lane. “The auction format delivers that promise and mixes in the elements of fun and excitement.”
As the Internet’s leading auction retailer for jewelry, First Auction’s launch of Hammerman Bros. jewelry will make more than $3 million in fine bracelets, rings, necklaces and earrings available to online shoppers. The opening bid prices on all fine jewelry from Hammerman are up to 75 percent below traditional retail.
The seven jewelry items with $1.00 opening bids will be offered each day from February 1 through February 7. Each auction will last 48 hours. These items include:
* An 18K 7″ Diamond and Emerald Bracelet (7.43 CTTW). 72 round diamonds, joined by 36 prong set emeralds alternating in clusters that overflow with color and light. MSRP $19,000
* 18K 7″ Ruby and Diamond Bracelet (6.99 CTTW). Three-row bracelet encrusted with high-color diamonds and brilliant rubies. MSRP $13,175
* 18K Diamond, Ruby and Emerald Half Hoop Earrings (4.70 CTTW). Two rubies, two emeralds and an astounding 196 diamonds, all selected for their remarkable clarity. MSRP $12,900
* 14K Diamond Five-Row Ring (1.45 CTTW) Size 6. MSRP $4,200
* 18K Diamond “X” Half Hoop Earrings (4.15 CTTW) MSRP $12,495
* 18K Ruby Diamond Swirl Ring (1.83 CTTW) Size 7. MSRP $4,400
* 18K 17″ Diamond and Red Spinel Necklace (6.17 CTTW) MSRP $9,430
Hammerman Bros. is a manufacturer for exclusive jewelers like Tiffany and in is included in the jewelry collections at Bergdorf Goodmans and Saks Fifth Avenue. Hammerman Bros. jewelry’s unparalleled design and beauty has made it the choice of celebrities such as Janet Jackson and society trend setters from New York City to Palm Beach to Aspen.
First Auction was the first auction retailer to offer jewelry as a major auction category when it launched in 1997. It has since developed a large repeat customer base among its more than 270,000 members. In addition to jewelry, First Auction offers home and leisure merchandise, women’s apparel, consumer electronics, computers, furniture, collectibles and more. Launched in 1997, First Auction was the first real-time auction on the Internet. Its Flash Auctions, a First Auction exclusive feature, are 30 minute auctions with starting bid prices of one dollar. Flash Auctions offer customers the most exciting auction experience on the Internet.
About Internet Shopping Network
Internet Shopping Network (www.isn.com), a division of USA Networks Interactive, launched the world’s first online store in 1994. ISN continues its online commerce innovation with First Auction (www.firstauction.com), the first real-time online auction, featuring the most diverse selection of home and leisure products, jewelry, apparel, consumer electronics and computers. ISN plans to launch new commerce sites in 1999 including an online outlet shopping center. Internet Shopping Network is headquartered in Sunnyvale, CA. SOURCE Internet Shopping Network
Gray clouds hovered above as the evening grew cold. Couples held hands as they cuddled in a horse-drawn carriage, listening to the clopping of horse hooves.
Despite the harsh economic times and cold weather, the Valentine business is alive for some venues.
“The romance of the day, that’s what carriage rides are all about. Romance and happiness.”tiffany jewelry said Liz Ragsdale, co-owner of Whitehaven Carriage.
She and her husband, Marion, have owned Whitehaven Carriage for 16 years. Saturday was their first Valentine’s Day operating in Denton.
“I think in our economy today, people need something to relax.” Marion said.
“And it gives their husband an opportunity to …,” said Liz.
“… get out of the doghouse,” Marion said with a laugh.
With many businesses feeling the impact of the financial crunch, the Ragsdales are thrilled they haven’t felt much of it.
“We feared every year when we heard that … but they come back every year,” Marion said.
Whitehaven Carriage was booked on Valentine’s Day. Marion handed roses cufflinks and chocolates to couples and families as Liz drove the white carriage guided by two Percheron horses.
“We’re big on customer service; I think that’s what keeps us in business.” Marion said.
He said that 75 to 85 percent of their business comes from repeat customers.
Joe and Johanna Iaia of Denton were among those with Valentine’s Day reservations. They rode a horse-drawn carriage on their wedding day nine years ago.
“We’re kind of reminiscing,” Johanna said. “I scheduled this as a surprise for Joe.”
The Ragsdales offered three packages that included a 25-minute ride, romantic music and a photograph. Chocolates and roses were also given, depending on which package was purchased.
The carriage packages were priced lower than they were when the Ragsdales worked money clips out of Dallas. Marion said he did that out of consideration for their new location in Denton and the economic hardships some are facing.
“If we did Valentine’s Day for the money, it would be weak. You can’t do it for the money,” Marion said.
But Valentine’s Day isn’t their biggest seller. Liz had a full schedule of carriage rides for the night and Marion had to turn away couples attempting to take part in the romance at the last minute.
“It’s a totally different world when they’re on a carriage,” Marion said.
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Nov. 12–The metal bracelet that an Elk Grove Village company has sold by the hundreds of thousands as a pain relief device has only a placebo effect, according to a Mayo Clinic study being made public Tuesday.
QT Inc. has sold its Q-Ray bracelet through TV infomercials and the Internet for $50 to $180, claiming the bracelet is electrically charged, or “ionized,” in a way that can increase strength and soothe pain.
But the study involving 610 people, conducted by a researcher at the Mayo Clinic in Jacksonville, Fla., found no such benefit.
“This was dead negative,” Peter O’Brien, a Mayo Clinic statistician who worked on the study, said Monday. “The bracelet doesn’t do anything beyond what you would get with a placebo… [There is] no medical or biological effect.”
The results of the study are reported in the November issue of Mayo Clinic tiffany Proceedings.
Que Te “Andrew” Park, president of QT Inc., could not be reached Monday for comment.
Park has toned down some of the claims for his product since last year, when QT Inc. was sued by a consumer organization. An attorney for the group, Consumer Justice Center, of Laguna Niguel, Calif., would not comment Monday on whether the suit had been resolved.
In an interview last year, Park explained the bracelet in terms of alternative medicine concepts, saying the bracelet pulls excess ions–or electrical charges–out of the body, easing pain.
Park said his company sold more than $10 million worth of the bracelets, C-shaped pieces of metal with knobs at the ends, between September 2000 and March 2001.
Park has supplied free bracelets to professional sports teams, including the White Sox, Blackhawks and Fire, and team trainers said some players reported that the bracelets helped.
The lead Mayo Clinic researcher, Dr. Robert Bratton, got interested in the topic after seeing some patients wearing various brands of “pain relief” bracelets and fielding questions from many others who were curious about whether they worked.
Although pain experts had scoffed at the notion that a bracelet could affect the body’s nervous system, let alone reduce pain, no one had conducted a rigorous medical study of the devices.
Early last year, Bratton and his assistants gathered 610 people with muscle or joint pain. They gave “ionized” Q-Ray bracelets to half the group and identical inactive bracelets to the other half. QT Inc. supplied the bracelets. Neither the researchers nor the test subjects knew which bracelets were which.
The popularity of pain-relief bracelets was evident in the test subjects themselves. Of the 409 participants who answered a survey question before starting the test, 80 percent said they believed the bracelets could reduce pain.
In the study, people in both groups reported less pain while wearing the bracelet. But that’s to be expected, O’Brien said.
“If you give people just a sugar pill and tell them it will take away their pain, people will tend to believe it and report less pain,” he said.
That explanation doesn’t wash with at least one satisfied Q-Ray user, who said emphatically money clips Monday that the relief he felt from arthritis pain in his hands was not due to the power of suggestion.
“I’m a believer in energy therapy anyway,” said Allan Misch, 55, of Columbia, Md. “I think it’s an area that’s really underexplored…
[And] let’s say it is the power of suggestion, so what? The bottom line is, it helped.”
In a statement, Bratton said the study was important because so many patients are interested in alternative medicine.
“We need to look at what our patients are doing for their various problems and undertake objective, controlled studies,” he said.
Many people with chronic pain are tempted by unproven remedies such as bracelets or magnets, said Dr. E. Richard Blonsky of Chicago.
“You hate to see them wasting money on something that’s basically useless,” he said.
Daniel Mcstay, Aidan Nolan, Gordon Shiach and Sean Mcavoy, all from tiffany jewelry Great Britain and Espen Rokke, Norway, have developed a method and apparatus for christmas tree condition monitoring.
The patent has been assigned to FMC Technologies Inc., Gears Road Houston, Texas.
According to an abstract posted by the World Intellectual Property Organization: “A method silver money clips for monitoring a Christmas tree assembly installed on a subsea hydrocarbon well includes receiving a plurality of parameters associated with the Christmas tree assembly. A health metric for the Christmas tree assembly is determined based on the parameters. A problem condition with the Christmas tree assembly is identified based on the determined health metric.”
The invention carries International Patent Publication No. WO/2009/136950 on Nov. 12.
The original patent was filed in United States of America under application No. silver pendants PCT/US2008/063501 on May 13, 2008
The city of Prescott issued the following news tiffany jewellery release:
At its stop on Gurley St., hundreds of attendees welcomed the Capitol Christmas Tree photo: courtesy Kim Webb
This year, Arizona was given the honor of providing the nation’s Capitol Christmas Tree. The 65-foot tree was donated courtesy of the Apache-Sitgreaves National Forest headquartered in Springerville, AZ and will be presented to Congress on November 30th, after a national tour.
After departing the Show Low-Pinetop area on Tuesday, the Capitol Christmas Tree delivery money clips caravan made stops in Fountain Hills, Prescott Valley, and finally in downtown Prescott at 5:30 pm. The tree was wrapped in sheeting for protection, and the large crowd on Gurley St. were encouraged to sign it.
The City’s special events manager, Becky Garvin arranged for the tree to come through Prescott. “As a former state capitol and the place where many great Arizona politicians have addressed their constituents, it felt right to have the tree come through our town.”
Follow the tree on it’s way to Washington D.C. by visiting the Capitol Christmas Tree website For more information pendants please contact: Sarabjit Jagirdar, Email:- htsyndication@hindustantimes.com.
The saw sliced through the trunk of the 35-foot Colorado spruce. A crane tiffany and co hauled the tree onto the back of a truck. Workers strapped the tree in preparation for its eight-mile police escort downtown.
Everyone standing in Nancy Bartol’s front yard clapped.
“Oh, you can smell it,” said Bartol’s sister, Ann Froehlke.
“The way they did it was just really slick,” Bartol said.
This is the way things are supposed to go each year when City of Milwaukee workers cut down the city/county Christmas tree that resides in Red Arrow Park during the holiday season. The tree in Bartol’s front yard on N. 78th St. was selected a few weeks ago to serve as the 96th official holiday ceremonial symbol.
The crew had a mishap last year in the attempt to corral a 45-foot tree in Bay View cufflinks. The top of the tree snapped on live television. Forestry crews fixed the tree once it was erected in the park, but the video briefly made Milwaukee the butt of jokes from cable and late night talk show hosts.
“We were like ‘whew,’ ” city urban forestry manager Randy Krouse said.
Froehlke, who drove down from Oshkosh, was impressed simply to be able to clearly see the white siding and brick front of her sister’s house. Her late husband planted the tree for Bartol as a housewarming gift 27 years ago.
While the two are sentimental about the gift, it was time for the tree to go. A neighbor said the 18-foot wide tree blocked Bartol’s windows and prevented flowers from blooming on the south side of her yard.
“Your whole front yard was taken up by that tree,” Froehlke said.
Crews will spend the next week securing and stringing ornaments and lights on the tree, and Froehlke money clips and Bartol plan to attend the formal lighting ceremony at 5:15 p.m. Nov. 19.
Neighbors strolled into Bartol’s front yard, attracted by the large city trucks and the television lights. Milwaukee Mayor Tom Barrett joked with Bartol and Krouse as the two discussed whether to replace the tree with a flower bed or another tree.
“We could get you a fire hydrant,” the mayor quipped.
The St. Clair County Community College issued the following press release:
St. Clair County Community College’s Theatre Discipline in December will present A Christmas tiffany Carol: A Ghost Story of Christmas in the college’s Fine Arts Theatre.
Performances will be at 7:30 p.m. Friday, Dec. 4; 7:30 p.m. Saturday, Dec. 5; and 2 p.m. Sunday, Dec. 6.
The play is written by Charles Dickens and adapted by Michael Wilson. Tom Kephart is director.
The play tells the classic tale of Ebenezer Scrooge and his Christmas Eve journey with three ghostly spirits.
Tickets are $5 for students and seniors age 60 and older and $7 bracelets for adults. Tickets are available at the door or by calling (810) 989-5513 between 8:30 a.m. and 4 p.m. weekdays.
A Christmas Carol: A Ghost Story of Christmas
SC4 student cast list Student Hometown
Joel Badley Marysville
Samantha Bogumil Kimball Township
Robert Croy Croswell cufflinks
Cassie Farrugia Clyde Township
Kelsey Hernandez Marysville
Rachel Kearney Port Huron
Mallorie Krul Kimball Township
Erilee Lowe Marine City
Jeremiah Lukasak East China Township
Rae Ann McVeigh Kimball Township
Kami Misch Emmett
Donald Parker Port Huron
Zach Parkhurst St. Clair
Ryan Silver Yale
Angie Stoecklin Columbus Township
Dan Williams Kimball Township
Jordan Yeip Columbus Township money clips Children cast list Lillian Beckman Port Huron
Erin Blaylock Marysville
Owen Day Port Huron
Courtney Harris Kimball Township
Delany Lemke Marysville
Wesley Spain Marysville
Marisa Spain Marysville
Elizabeth Sturtridge Marysville For more information please contact: Sarabjit Jagirdar, Email:- htsyndication@hindustantimes.com.
Charity donations made in lieu of presents are becoming common gifts at birthdays and Christmas tiffany. Now a new beneficiary is being marketed alongside victims of famine and endangered species: the Treasury.
Britain’s national debt, currently at record peacetime levels, has become a charitable cause.
The Charities Advisory Trust, which has offered to collect donations and send them to the Treasury to help “whittle down Britain’s national debt”, has already received individual gifts of up to pound(s)500 from publicly minded citizens.
The scheme is being promoted as an ideal Christmas present for those worried about bequeathing the legacy of the banking crisis to the next generation. “Why lumber your descendants with a staggering debt burden?” the advertisements ask. “A wonderful present for children and grandchildren . . . Now is the time to start reducing the National Debt in their names”.
A donation of pound(s)20 is suggested, although bankers feeling weighed down by guilt have the option to cufflinks pay in pound(s)1,000. Higher rate taxpayers should be able to claim back tax relief on donations made to the Treasury, according to PwC, the professional services firm.
Dame Hilary Blume, director of the Charities Advisory Trust which disburses donations to charities, said that although the idea had raised eyebrows, money was already arriving. “This is a way for people to feel that they are helping,” she said. “People feel that the only way we can sort out this situation is if we all take responsibility.”
The scheme evokes the “I’m backing Britain” campaign of the late 1960s, when office workers volunteered to money clips stay at their desks for an extra half-hour each day to help the flagging economy, while the Treasury received envelopes containing “conscience cash” from the public to pay off government debt.
Public-spirited action on national debt is not confined to the UK. In the US, contributions to reduce the country’s debt have risen this year, at just more than $3m, according to the Bureau of the Public Debt.
Unfortunately for the Treasury, it will take more than pound(s)20 a person to dig Britain out of its fiscal hole. John Sibson, partner and government and public sector leader at PwC, estimates the current debt equates to pound(s)17,000 for each adult in the country.
The Budget predicts a deficit of pound(s)175bn this year and debt is expected to more than double from 37 pendants per cent of national income to almost 80 per cent by 2015. Accountancy firms say high levels of national debt could lead to persistently high interest rates, higher currency volatility and uncertainty for business.
Lombard, Page 17
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