Saturday, Aug 16, 2008
Vince knows the score!
Metro: Recession threat 'could last ten years'
'When I talk about recession, I'm talking about it not in the economic sense – two consecutive quarters of negative growth – but as most people see it, with job losses, house repossessions and a lack of consumer spending. The doomsday scenario would be that we finish up like Japan did, with ten years of stagnation.'
With unprecedented levels of debt, at best, preventing people from spending, at worst, not being paid back at all, this prediction is most likely. Problem being we are not Japan, home of Sony , Honda, Toyota, etc. etc. We have nothing to fall back to.
Posted by cheekie charlie @ 12:16 AM (846 views) Add Comment
12 Comments
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1. str 2007 said...
I'm not sure if VC has the answers, but at least he realises what maybe ahead.
I'm not sure the other leaders can even admit it.
One of them has caused it and one of them belongs to a party that caused the last one.
I don't know if the sheeple can actually focus their minds away from the main parties but from my point of view I'm hearing something different from what the main parties have to say and that is a realistic observation of what may be the truth.
That to me is a starting point for new foundations.
2. bystander said...
...heard a b(w)anker on Bloomberg this morning refering to GB as our 'former' PM. Hope this sort of dissent continues to spread.
3. nooneo said...
str 2007.....
Perhaps the pressure is off VC because it would take a miracle for the Libs to hold office.
If they had a realistic chance of power they might be bleeting the same old rhetoric that eminates from the LieBours and the Posh Party !
VC appears to be the only politician that has an actual grasp of what has happened/is happening ?
I might have voted for them if they had actually elected him as leader !
4. nooneo said...
bystander ....
"refering to GB as our 'former' PM. " - We now have a wounded PM. I expect the scottish electorate will finish him off at the next by-election !
Offering a few bribes to the needy (at the so called relaunch of GB) will be seen to be as crass as giving beads to the natives.
Broon is finished. The whole country (apart from a few deluded liebour stalwarts) knows it. He's living out his personal fantasy, at our expense, for the next two years...
"what did you do in the war grandad"
"Oh I was prime minister once sweety!"
5. japanese uncle said...
What LibDem must do now is to admit none other than Charles Kennedy can be good enough to lead the party, with the current leadership proven fatally lacking charisma, and to politely ask him to come back now that his drinking problem seems to have been cured all right.
Anyway:
To sum it up, the gynormous UK debt means the current generation snatched the purchasing power from the future themselves or their offspring, making the future economic prospect all the more gloomy. What was borrowed must be paid back as even toddlers must know. What UK must do now is to restore decent science education while familiarizing kids with finance, not involving pseudo-financial products which are in reality no different from betting on dog races, but the strict Dickensian principle 'Don't borrow unless it involves life and death', to become again an industrial/industrious nation. It may well take longer than a decade but that is the only way out.
In a lunatic economic bubble, people are misled to believe debt is part of an asset, which is a gross lie.
6. icarus said...
cheeky charlie - "nothing to fall back on"? We excel in the same evil industries as the US excels in : WMD, financial services, Big Oil and Big Pharma.
7. nooneo said...
japanese uncle said...
"In a lunatic economic bubble, people are misled to believe debt is part of an asset, which is a gross lie."
Very true. Debt is only an asset if it's owed to you !
8. Gardeniadotnet said...
>Debt is only an asset if it's owed to you !
...if it can be paid back, of course.
9. str 2007 said...
nooneo
And then only when it's been paid back as the banks are finding out
10. nooneo said...
I agree str 2007
Ouch ! It is scary when banks bought themselves into 'the american dream' without really knowing what they were buying !
Perhaps they took advice from 'the best chancellor since the second world war' !
11. Friend_of_the_stars said...
@6 - Icarus, I couldn't agree more. The pharmas are going to have to come up with some kind of new uber-pill to keep Joe Public sedated through this mess. Did I really hear that they are adapting LSD for depressives??
12. Jimmyb said...
Nooneo said
refering to GB as our 'former' PM. " - We now have a wounded PM.
That's what I am worried about, what lunatic things, wounded animals do when cornered.