Wednesday, Feb 18, 2009
World economy to recover within next couple of months
Telegraph: Economy could recover in April claims Brown
Mr Brown said that the world could then "move towards recovery in the next few months" if agreement was reached
The Prime Minister said: "If we can get that action in place and rebuild trust and confidence in the world economy then recovery will be quicker. That is why we are putting a lot of emphasis on the meeting on 2 April. If we can get agreement then that is a major step forwards
Posted by bellwether @ 09:23 PM (1838 views) Add Comment
21 Comments
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1. Neo-serf said...
The Madness of King Gordon at Cinema's in June.
2. stillthinking said...
To be fair to Brown, if he manages to finish the recession in the next few months, I won't vote against him.
3. debtfree said...
The man talks utter dribble and nothing but words with no substance.
For example:
He is considering "greater powers for regulators to oversee previously under-regulated sectors and how to ensure consistent regulations in all jurisdictions."
It reminds me of the fonejacker sketch "would you be interested in the service providing the internet server provider service providings ?"
Its just utter nonsense.
The G20 world leaders, including Barack Obama, were coming to Britain to work towards a "global deal and grand bargain," Mr Brown said.
Mr Brown said that the world could then "move towards recovery in the next few months" if agreement was reached.
WHAT AGREEMENT, WHAT PLAN...?
Its just absolute political clap trap and mixture of words that always divert away from answering the question.
Get rid of politicians and maybe we can start thinking about how to build a brighter future.
4. hpwatcher said...
Why would anyone listen to this idiot?
5. debtfree said...
He's a 'Global' idiot, not some normal village idiot.
6. Manupthere said...
Which idiot do you mean ? Brown or debtfree ?
7. Iblewitlasttime said...
MASSIVE SPIN ALERT
Brown will try and spin a few cleverly typed but ultimatey meaningless words at the G20 meeting into a world saving triumph.
He'd be funny if he wasn't so dangerous.
8. james stephenson said...
debtfree@2
Couldn't have said it better.
But if they manage to pull this one off (as they did after the dot.com crash), then we can look forward to an even greater crash in a few years time. The planet is in negative equity and there needs to be a correction. At best, they will be stemming the bloodflow, but not healing the wound.
9. bellwether said...
In fairness sh!te is Brown so why shouldn't he talk it.
Sorry about the bad language.
10. mark wadsworth said...
And pretty soon he'll be able to take the tram from the Western front to the Eastern front.
Actually, we could get out of the recession within a few months, it just requires a bit of intellectual honesty/brutality.
1. Sort out the banking system by declaring existing banks to be 'bad' (except HSBC and Nationwide) and transferring their branches, employees and depositors to a series of New Banks (like when they transferred B&B to Santander). Old banks remain closed funds, to the extent that money comes in from mortgage repayments or redemptions, the new banks that took over the deposits (which are a liability from the new banks' point of view) get repaid first. Old banks jack up lending rates to encourage good borrowers and profitable companies to redeem and take out loans with New Banks. All the crap gets left behind in old bad banks for bondholders and shareholders to squabble over. Total losses will be about ten pence in the pound or so, tough.
2. Scrap the Bank of England MPC and allow 'the markets' to set interest rates, to be agreed between each bank and each borrower. Proper banking supervision, and rules like in Spain that banks can't lend to or invest in other banks.
3. Allow property prices to tumble to the bottom as quickly as possible, it might take as little as six months if it were clear that the government doesn't care any more, and if the artificially low interest rates returned to normal. Once you've hit the bottom, then the only way is up. Declare an amnesty for all those bankrupted as a result of negative equity - in exchange for losing everything on Day One, they are automatically dicharged from bankruptcy on Day Two.
4. Radically simplify the tax system, scrap Employer's NIC and VAT (or work our way round it as best as we can if we don't leave the EU, i.e. by giving full credit for VAT paid against a business' corporation tax, income tax or PAYE liabilities), replace entire welfare state with Citizen's Income type scheme (which is mathematically perfectly do-able, I've done the figure dozens of times) so that there is no poverty trap and no perverse incentives for young single women to have kids and no means testing of benefits. Sack a couple of million quangista while we're at it - get public sector employment back below 1997 levels (again, real figures, public sector employment up from six to eight million since 1997 using ILO figures) to give us the money to scrap Employer's NIC and VAT.
5. Keep house prices permanently low and stable with LVT, to replace council tax, stamp duty, inheritance tax, capital gains tax, TV licence fee, with roll-up option for pensioners. LVT also to replace Business Rates, which is the closest thing we have to LVT in this country. Liberalise planning laws just to make absolutely sure we never get a bubble again.
There, that's that fixed. Later in the year I'll solve the Middle East conflict, and in 2010 I'm pencilled in to be manager of the English football team that clinches victory in the World Cup.
11. alan said...
If he can finish the recession in a few months he will be resistant to anything...except perhaps kryptonite!
12. it_is_going_with_a_bang said...
It was not that long ago I remember Brown preaching about how we "would" avoid recession because of his wonderful skills in government.
I don't seem to remember it being a 'might' avoid either.
I would imagine we will all get told every single month that it's the bottom and in a few months all will be well.
Spends years telling us all not to drive cars and tax the hell out of petrol. Then when the economics actually bring it about it is a terrible thing and we must all get out and buy cars. How utterly absurd.
Everything he does is just about getting votes regardless of the long term consequences. That is what the last 12 years has been about.
Labour has turned from being a party with ethics to a party and just 'wants to stay in power' whatever the consequences.
This is why it is unhealthy to have parties in power for too long.
13. Lucas said...
His naive statements just show how really ignorant he is about economics and the reason why the UK is in such bad mess. Maybe if he was a trained economist with a degree with real experiance of how to build an econometric model, he forecasts would be a bit more accurate. No more boom and bust - what an idiot, an A-level grade N Economics student wouldn't even believe that!
14. jack c said...
Meeting on 2nd April - they must have got the dates mixed up - surely April 1st ? Political fools day of which head of state is Gordon clown
We are off to hell in a hand cart and he know's it, he just cant say it !
15. titaniccaptain said...
@Wadsworth
Only Problem is.............none of those suggestions will materialise...so on what makes him think we can come out of recession by april???hmmmmm oh silly me he is telling fibs again....he nearly caught us out there...sneaky devil
16. uncle tom said...
Brown is hoping that by pushing government borrowing into orbit, he can stall GDP contraction until after the next election.
Trouble is, virtually every other government on the planet has a similar idea, and will soon start fighting for the limited cash available..
17. hpwatcher said...
mark wadsworth - There, that's that fixed. Later in the year I'll solve the Middle East conflict, and in 2010 I'm pencilled in to be manager of the English football team that clinches victory in the World Cup.
cool!!
18. Crunchy said...
16. uncle tom said...Trouble is, virtually every other government on the planet has a similar idea, and will soon start fighting for the limited cash available.
Brown will try a global printing stunt.
When we have hyper-inflation he can say it's a global problem again. This man is sooooooooo predictable.
19. Adrockuk said...
Surely the man talks enough crap without people putting words in his mouth. There is nowhere in the article where he is quoting as saying the economy will recover in April or the next few months. He said the April meeting would be important for working towards recovery over the following few months. Sounds reasonable to me.
20. Beardiebloke said...
April 2013?
21. I Want A House said...
People, people, he meant April 2012. By then he should be a distant nightmare...