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eric pebble

Evening Standard: Come Clean, Gordon Brown: The Worst Is Still To Come

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Come clean, Gordon Brown: the worst is still to come

Of the Prime Minister's various weaknesses, the most damaging is his tendency to treat the voters as if they are idiots. Everyone now knows that his 10-year boom as Chancellor was built on an orgy of debt, in which we all spent 110 per cent of our income and treated our houses like cash machines.

http://www.thisislondon.co.uk/standard/art...come/article.do

Good, accurate and intelligent article. There are SOME media commentators who TELL THE TRUTH - Even though they are very much in the minority. <_<

Edited by eric pebble

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Despite those fabled green shoots, the reality is we have a decade of high taxes and low spending ahead...

Of the Prime Minister's various weaknesses, the most damaging is his tendency to treat the voters as if they are idiots. Everyone now knows that his 10-year boom as Chancellor was built on an orgy of debt, in which we all spent 110 per cent of our income and treated our houses like cash machines. We also now realise that money has to be paid back, so as a rule of thumb we can expect that for the next 10 years we will be able to spend just 90 per cent of our income, with the rest being used to put the nation's and our own finances back on an even keel. But not Prime Minister Gordon Brown.

He seems to want to convince us that life can go on much as before. Indeed his entire political strategy for winning the next election seems to be based on persuading us to believe that the biggest financial shock the world has ever seen will not really have any lasting impact.

How true is that...all is not what it seems. ;)

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The western economic system is based on debts not being repaid, just serviced. (It has taken me too long to realise this)

Gordon encouraged debt to be built up beyond serviceable levels. That is his economic failure.

VMR.

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The western economic system is based on debts not being repaid, just serviced. (It has taken me too long to realise this)

Gordon encouraged debt to be built up beyond serviceable levels. That is his economic failure.

VMR.

You mean it's based on the Ocean Finance model of continually rolling up the debt into one perpetual payment with no actual plan to pay of the capital only to borrow ever more and just keep servicing the debt?

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You mean it's based on the Ocean Finance model of continually rolling up the debt into one perpetual payment with no actual plan to pay of the capital only to borrow ever more and just keep servicing the debt?

Will we have enough left over for a holiday or a new car like they do on the telly?

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The western economic system is based on debts not being repaid, just serviced. (It has taken me too long to realise this)

Gordon encouraged debt to be built up beyond serviceable levels. That is his economic failure.

VMR.

Indeed.

And the perpetual debt system needs perpetual, thought free confidence. A bit like the housing market really.....

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Come clean, Gordon Brown: the worst is still to come

Of the Prime Minister's various weaknesses, the most damaging is his tendency to treat the voters as if they are idiots. Everyone now knows that his 10-year boom as Chancellor was built on an orgy of debt, in which we all spent 110 per cent of our income and treated our houses like cash machines.

http://www.thisislondon.co.uk/standard/art...come/article.do

Good, accurate and intelligent article. There are SOME media commentators who TELL THE TRUTH - Even though they are very much in the minority. <_<

i think a good portion of browns 10 years of economic growth was entirely a figment of greenspans imagination.

[nod to ParticleMan]

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The Governor of the Bank of England knows this full well and that is why he keeps upsetting the Government with his warnings that we are nowhere near out of the woods. But it is not just Mervyn King. Last week Andrew Sentance, a member of the Monetary Policy Committee, said quite clearly in a speech that the country faces 10 years of what he called tight fiscal policies - which is economist-speak for higher taxes and lower spending. The same message has come in the past few days from the deputy governors Paul Tucker and Charles Bean and almost every independent economist, trade association and lobbying group in the country and a few international bodies into the bargain. Indeed, no one believes it is going to get any easier soon.

Surely they can't all be out of step while Brown is right.

Good article Eric, Thanks.

Brown reminds me of a dodgy referee in the most important football match ever. 100,000 people can not understand the decisions he is making and have or will come to the conclusion that he is either deluded or corrupt.

At some point the crowd will riot.

Some people are in the RED They think it`s all over.

It is now :(

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.....

Good, accurate and intelligent article. ...

In the Standard?

You are having a laff innit.

Even if the Journo was telling the truth the editor would have pulled the plug on it.

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Good article Eric, Thanks.

Brown reminds me of a dodgy referee in the most important football match ever. 100,000 people can not understand the decisions he is making and have or will come to the conclusion that he is either deluded or corrupt.

At some point the crowd will riot.

Some people are in the RED They think it`s all over.

It is now :(

Who's the w@nker in the red?

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Spinner Brown is incapable of telling the truth:

"We as a nation are going to have to make some genuinely tough choices. We are going to have to rethink what we want from public services, how much we are prepared to pay for them and what we are prepared to sacrifice. Many things we do now we just will not be able to do in future - and it would be in everyone's interest if the Government would admit it."

Broon say that?!?!?

Nah!...

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Guest anorthosite
Looks like it's been well stuffed and with a lovely set of legs I'd imagine. Who's the slag?

Caroline Flint.

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The western economic system is based on debts not being repaid, just serviced. (It has taken me too long to realise this)

Gordon encouraged debt to be built up beyond serviceable levels. That is his economic failure.

VMR.

Thanks VMR.

This quote should be pinned somewhere.

Or graffiti'd* :angry:

Is that a verb? :unsure:

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The western economic system is based on debts not being repaid, just serviced. (It has taken me too long to realise this)

Gordon encouraged debt to be built up beyond serviceable levels. That is his economic failure.

VMR.

Yes - excellent summary.

Could the system work if it was "toned down" a little - i.e. debt not accumulating as rapidly, incomes not detaching so fast from asset values that those new to the game can afford to sit at the table? Maybe. Of course that would mean those at the top would need to live more modestly than in recent times

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Could the system work if it was "toned down" a little - i.e. debt not accumulating as rapidly, incomes not detaching so fast from asset values that those new to the game can afford to sit at the table? Maybe. Of course that would mean those at the top would need to live more modestly than in recent times

That's the root of the problem- the 'credit crunch' is really just an accelerated version of what was going to happen eventualy anyway- but our banking freinds could not wait for the future to arrive so spent it all today instead, and in doing so shattered the illusion. So long as the day of reckoning was, like death, consigned to the indeterminate future, all seemed well- but thanks to the banksters that day of reckoning is a lot closer than we thought.

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We also now realise that money has to be paid back, so as a rule of thumb we can expect that for the next 10 years we will be able to spend just 90 per cent of our income

I would love to be able to spend 90% of my income! Unfortunately the government already takes a wee bit more than 10% in tax!

Edited by Austin Allegro

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Yes - excellent summary.

Could the system work if it was "toned down" a little - i.e. debt not accumulating as rapidly, incomes not detaching so fast from asset values that those new to the game can afford to sit at the table? Maybe. Of course that would mean those at the top would need to live more modestly than in recent times

Worked from 1945 till 2006 OK...........

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