What our politicians’ promises lack in substance is made up for by incessant repetition and, by now, we’ve all heard the plans for paying back our massive debts and reducing our budget deficits but, just in case, you’d forgotten, the thinking is that we cut public spending, raise taxes and rely on economic growth from our export sectors to make up the shortfall.

According to analysts at “Omega-Trading”, this is utter folly. How on earth is a factory worker in, say, Hull in the north-east of England going to compete with his counterpart in, say, Chiang Mai in Thailand on salary? If the West is to compete with China, India and South-East Asia, living standards must fall but how practical is this?

One “Omega-Trading” strategist said, “Can you imagine an auto production worker in the United States reacting favorably if told that his salary must be cut by 30 or 40% so that his employer can remain competitive with, say, India’s Tata Motors?” A very pertinent question and one that would leave most politicians speechless and yet, they persist in telling their electorates that this is all possible.

Of course, one would be hard-pressed to find a politician willing to be straight with voters by telling them that the SUV, the high definition satellite TV subscription and the three-times a week restaurant booking will, more than likely, be replaced by public transport, terrestrial TV and happy meals all round but this will be the reality for millions of ordinary families in the developed economies.

The gap between the haves and the have-nots is set to widen significantly but “Omega-Trading” insists that it is possible to make the inevitable austerity an opportunity for profit. The firm says that investing in the right companies now could provide additional income to maintain and even improve one’s current standard of living.

Investing in companies that are likely to flourish during hard times makes sense. Pawnbrokers, for example, are already witnessing higher levels of business as cash-strapped families try to turn old jewelry into hard cash. Discount retailers offering groceries and other essentials stand to increase turnover and profits as the austerity bites. Oil companies whose stocks fall as the prospects for economic growth fade will quickly bounce once it becomes apparent that the developing economies show no sign of suffering the fate of their developed counterparts meaning strong and consistent dividend payments for years to come.