Sunday, Aug 17, 2008
Time to tear up Gordon's little book of clichés and have an honest conversation
The Observer: Chancellor doesn't seem overly unsettled by the chill in the air
The Bank of England governor tells us he detects a 'feeling of chill in the economic air', but Alistair Darling is still eagerly seeking patches of blue sky between the clouds, while repeating the faintly desperate-sounding mantra that 'the economic fundamentals remain strong'. House prices are plunging faster than during the early 1990s crash, and unemployment has increased for six months in a row, with last month's 20,100 increase in the number of people claiming jobless benefits the largest in 16 years. King seems irritated at the impression created by hints and rumours from ministers that a clever little measure or two could unlock the mortgage markets, or restore the housing market instantly to health. 'Pretending there's a magic solution is not the answer,' he said.
7 Comments
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1. paul said...
I think The Establishment (i.e. the Bank of England and parliament) are slowly realising while they created an environment that underpriced risk with a few deft policy measures on the back of a brassierie napkin, the effects of those shoddily thought out policies cannot so easily be sidestepped over another free lunch drinkypoo.
2. denzil said...
"mischievous rumours that David Miliband was offered the keys of Number 11 in exchange for burying his leadership ambitions"
I'm sure Miliband is not that stupid to take that opportunity. Even Darling has yet to pluck up the courage to lift the rug to see what the big mound is underneath. My guess is that it is ten years of Brown defecation that he brushed under the rug, hoping that nobody would notice. The problem now, is that the pong of Brown's years are smelt far and wide across this little island.
3. letthemfall said...
A sobering article, if we were not sober enough already. Life these days is riddled with cliches, so it is perhaps no surprise that the Govt can only trot them out, in an effort to absolve themselves of incompetence at running the country. Most of us know that past govts have been similarly incompetent. The question is whether politicians just don't know how to do it, or are simply completely absorbed in holding on to power, which means letting the good times roll while they roll, and pretending the cliff we eventually reach is not a cliff. In reality the good times benefit a rather narrow group of people - we all know who. For the rest it was always an illusion.
4. alan said...
Darling and Brown are showing a distinct lack of leadership. Mervyn is telling the nation what has gone wrong and where we are headed. It is surely the task of the government to:
1. Tell us what's going on.
2. Manage it.
I think the article highlights the current situation very well. Anyone reading this from Gordo's office?
5. it_is_going_with_a_bang said...
Brown could never in a million years hope to sack Darling and think that people will assign blame for anything economic to Darling.
EVERYONE sees Darling as a puppet ( with a rather silly hair / eyebrow thing going on )
6. icarus said...
Miliband at number 11? Nothing is moving in the housing market, so Badger will remain at Badger Hall and Toad will have to remain at Toad Hall. Straw or Milburn at number 11? No. Mole and Rat will have stay where they are too.
7. mytimeisnigh said...
The scary thing is, I think, the Labour Government is so arrogant, they still believe their own bull sh*t, i.e. the golden rule, prudence??, end to boom and bust, etc. The mantra has now turned to, we're still faultless, the economy is in difficulty only because of factors outside of our control, American subprime, rising oil and food prices......we're still well placed to weather the storm, what with our housing shortage, low interest rates and low unemployment. What is the general public going to be saying this time next year. When enough people are realising their job may go, they're in neg equity and can't afford to go to the local pub and Indian restaurant on a Saturday night, the country will be screaming out for someone to change the stuck record.