Sunday, Feb 28, 2010
Printy Printy Watch
The Telegraph: Don't go wobbly on us now, Ben Bernanke
This is not to pick on America. Belt-tightening is the oppressive fact of 2010-2012 for half the world. Latvia's economy may contract by 30pc from peak to trough as it carries out an "internal devaluation", ie wage cuts, to hold its euro peg.
The eurozone's fiscal squeeze is well advanced in Ireland. Brussels has told Greece to cut by 10pc of GDP in three years, Spain by 8pc, Portugal by 6pc. Britain must slash soon, or face a gilts strike.
The Bank for International Settlements says Britain needs a primary surplus of 5.8pc of GDP for a decade to stabilise debt at pre-crisis levels, given the ageing crunch as well. The figure is 6.4pc for Japan, 4.3pc for the US and France. It warns of "unstable dynamics", posh talk for a debt spiral. "Action is needed now."
8 Comments
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1. devo said...
the Bank for International Settlements says Britain needs a primary surplus of 5.8pc of GDP for a decade to stabilise debt at pre-crisis levels
like that's really going to happen
2. chrisa said...
A.E.Pritchard with a typical piece mentioning deflation ever other couple of sentences. Get the impression we are being softened up for another burst of QE? Well done Ambrose you utter tool lets just print away and avoid having to make the tough decisions for a little longer. Does he even actually write this stuff? Is it actually prepared for him by the crooks at the BoE and McRuin?
3. devo said...
@chrisa
why do you think the world and his wife (with the honourable exception of ireland) is scared of taking 'tough decisions'?
4. Chrisa said...
@devo Probably because as in the case of UK the level of hardship involved in correcting for the recent excesses under Brown and Blair would be so severe and the resultant unemployment so significant that there would be a risk of rioting and anarchy. In their eyes it is far better to do things gradually by devaluation etc etc so the pain is spread out and fewer people realise what is taking place. It would also reveal to the population that the UK is now a hollowed out shell.
However there are other possibilities but that would involve thinking along conspiracy lines. I think we have covered some of these before.
5. chrisa said...
@devo The tough decisions would need to be so tough to correct the imbalances that I suspect they would rightly fear rioting and anarchy. Better to do things gradually so people don't notice all at once. Prolongs the pain and destroys the currency though. Presumeably if you work for the BoE the currency means nothing to you anyway as you recognise it to be just a worthless bit of paper with a worthless promise.
What do you think though?
6. devo said...
@chrisa
i think the game's up - no more get out of jail free cards
bear in mind i also thought this in 2007 - before i knew about the magic of Quantitative Easing
7. chrisa said...
The can has been kicked down the road for so far and long that eventually it has come to rest against a wall. Their solution? Crash the system and reset in the style of NWO.....
8. Crunchy said...
Watch printy, printy.