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Stagflation..........

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Interesting attack on the chancellor by Blair groupie Sieghart in this article on stagflation :

Abridged version..........

"Sniffles that may turn nasty

Mary Ann Sieghart The Times. 12th August

This is not a repeat of the crisis in the mid-1970s, but the Chancellor will be feeling the cold......................

“Stagflation” is defined in my Collins Concise as “an inflationary economic situation characterised by a decline in industrial output”. Freed from jargon, that means inflation is high even though the economy is shrinking. This causes acute problems for central bankers. Normally, the response to faster inflation is to raise interest rates. But if the economy is already in recession, then higher interest rates are the worst possible medicine.....................

But the euphoria of the first half of the decade is over. The house price bubble has deflated, consumers are counting their debts and unemployment is ticking up again. Government spending will have to be reined in, and the era of the bloated public sector, awash with cash and recruiting like mad, must now come to an end.

Life for Gordon Brown, therefore, will be nothing like as comfortable in the next few years as it has been in the past few. He will have to impose some painful cuts on his colleagues in the next spending review, or put up taxes. He cannot borrow any more without the Bank retaliating by raising interest rates. And, as Mr King observed tartly on Wednesday, the Chancellor’s unilateral decision to redefine the economic cycle does not change the facts. “The Bank and the Treasury have a very different view about how we think about the cycle,” he said, in the nearest a Governor gets to rebuking a Chancellor. “If you change your view about what happened seven or eight years ago, it doesn’t change the underlying fiscal position.”

Mr Brown came into office determined that the City and the public should revise their prejudice that Labour Chancellors could not be trusted to manage the economy. So far, his record has been pretty good. But trust in him has been eroded by his dodgy redefinition of the economic cycle. And the economy itself is looking rather more fragile. This is no 1976, and Mr Brown is no Denis Healey. If the Chancellor gets it wrong, though, we are more likely to be humming Bye Bye Baby than The Leader of the Gang." End quote

Full article at...........Times online-Sieghart

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"His record so far has been pretty good"

Hell I would hate to have seen his record if it had been bad.

We have Record Borrowing, Record Spending, Record lows on Exports, Record lows on production, Record lows on investment.

Face facts the country has just spend 8 years on a chancellor fuelled spending spree, and we all know the consequences of spending money that is neither yours or you do not have.

Your five Golden rules should be extended to six.

Bow out Gracefully taking you pal Blair with you, because if you dont go of your own accord there are around 60Million people who will be helping you on your way.

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"His record so far has been pretty good"

Hell I would hate to have seen his record if it had been bad.

We have Record Borrowing, Record Spending, Record lows on Exports, Record lows on production, Record lows on investment.

Face facts the country has just spend 8 years on a chancellor fuelled spending spree, and we all know the consequences of spending money that is neither yours or you do not have.

Your five Golden rules should be extended to six.

Bow out Gracefully taking you pal Blair with you, because if you dont go of your own accord there are around 60Million people who will be helping you on your way.

I'm a leftie, but I have to agree. The issue with Labour is definately one of competence. Its likely we will get a Tory administration next time round, but by then the damage will have been done and the whole country will suffer for Gordons arrogance, ' no more boom and bust ', what an idiot.

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And, as Mr King observed tartly on Wednesday, the Chancellor’s unilateral decision to redefine the economic cycle does not change the facts. “The Bank and the Treasury have a very different view about how we think about the cycle,” he said, in the nearest a Governor gets to rebuking a Chancellor. “If you change your view about what happened seven or eight years ago, it doesn’t change the underlying fiscal position.”

Wow. Sounds like some major ar5e-covering has started.

JY

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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