Tony Blair: We Should Have Addressed Deficit In 2005

[interestrateripoff]

http://www.bbc.co.uk/news/business-11153166

The UK should have addressed its public deficit back in 2005, former Prime Minister Tony Blair has told the BBC.

Speaking to Andrew Marr, Mr Blair said: "We should probably have taken a tougher fiscal position than we did."

He said that this was also about the time when disagreement between himself and Gordon Brown "started to spill over into macro-economic policy".

In his memoirs, Mr Blair wrote that it was his idea to give the Bank of England independence.

"Some months before the [1997] election, Gordon and I formed the desire to give monetary policy - ie setting interest rates - over to the Bank of England," he wrote.

"I had no doubt it was right... Gordon had come to the same conclusion, and so when I suggested it, he readily agreed."

'Public spending limit'

In an interview with Andrew Marr, Mr Blair said that he had wanted to implement a fundamental savings review after 2005.

"It was about thinking we'd reached the limit of public spending and we now had to drive value through our public services," he said.

But the former prime minister said he did not predict the financial crisis and also praised some of the actions of his successor.

"I think in the programme to stabilise the banks, I think this was Gordon at his very best. I think he acted quickly. He acted perceptively.

"And in a sense, he led the world in that, and he will rightly, in my view, get much credit for that in history."

Revisionist history at it's finest.

Gordon will get his place in history, although I highly doubt it will be with any positive distinction. You get the feeling Tony is trying to make sure he escapes the blame for this mess.

[MrPin]

Revisionist history at it's finest.

Gordon will get his place in history, although I highly doubt it will be with any positive distinction. You get the feeling Tony is trying to make sure he escapes the blame for this mess.

Perhaps he should have suggested it to somebody at the time! After all he was Prime Minister, which probably meant he knew the people who ran things!

[sbn]

the keynsian thinking they pretended to adhere to states that you put money aside during the good times, for use in the bad times. much lile a squirrel buries hazelnuts in the summer.

squirrels have been doing this for millions of years.

a squirrels brain is about as big as a hazelnut

please feel free to use this analogy in pmq prime minister

Edited September 1, 2010 by sbn

[mdman]

He aint fooling anyone

Today vividly reminded me what an absolute disaster NuLab were, with those 2 deviant personalities at the top of the pile flinging **** at each other.

[SleepyHead]

Interesting that Andrew Marr said "Was it not just a long extended bubble, based on increasing house prices, debt and maxing out on credit cards?" Or words to that effect.

Blair said no, but I bet he must suspect deep down that it was. He mentioned it being a "severe business cycle" (again quoting from memory, Ill correct later when it's shown again)

[SarahBell]

He is such a horrible man.

[SleepyHead]

the keynsian thinking they pretended to adhere to states that you put money aside during the good times, for use in the bad times. much lile a squirrel buries hazelnuts in the summer.

Spot on,

This point is really lost on the mainstream media, and on mainstream economists. Keynes would roll over in his grave if he knew what was being done in his name.

One expert happens to say 'in certain circumstances you could spend money' and the politicians then print like mad at every opportunity, without any concern for what the expert actually said.

It reminds me of when doctors said that drinking red wine in moderation can help with certain aspects of health. Media and sheeple took it as a green light for boozing every night!

Edited September 1, 2010 by wtb

[erranta]

the keynsian thinking they pretended to adhere to states that you put money aside during the good times, for use in the bad times. much lile a squirrel buries hazelnuts in the summer.

squirrels have been doing this for millions of years.

a squirrels brain is about as big as a hazelnut

please feel free to use this analogy in pmq prime minister

Are you trying to say Blair played the housing markets (and with his insider information) made plenty of 'stashes' for himself & his family?

Bastards - 2005, exact timeframe when I woz annoyed enough to post on HPC

Edited September 1, 2010 by erranta

[Tired of Waiting]

http://www.bbc.co.uk/news/business-11153166

Revisionist history at it's finest.

Gordon will get his place in history, although I highly doubt it will be with any positive distinction. You get the feeling Tony is trying to make sure he escapes the blame for this mess.

Blair implied that it was Gordon Brown's fault. This is very interesting, as Brown will have to explain/defend himself next.

[Guest_James Toney_*]

i hate blair

he caused so much heartache and unhappiness for people and families with his illegal war and lies.

i really wish the very worst for blair and his wife and children for the rest of their lives

[NEO72]

i hate blair

he caused so much heartache and unhappiness for people and families with his illegal war and lies.

i really wish the very worst for blair and his wife and children for the rest of their lives

+1 (although not his kids-not their fault their old man is a ****).

[SleepyHead]

i hate blair

he caused so much heartache and unhappiness for people and families with his illegal war and lies.

i really wish the very worst for blair and his wife and children for the rest of their lives

So you hate Blair for the unhappiness and heartache experienced by people and families.

But then wish unhappiness and heartache on his wife and children. Not an admirable position.

Personally I had no problem with Blair. It was Brown I had a problem with.

Edited September 1, 2010 by wtb

[Guest_James Toney_*]

+1 (although not his kids-not their fault their old man is a ****).

no not their fault, but if something happened to his kids or wife , then at least he would feel the pain others have.

[TeddyBear]

i hate blair

he caused so much heartache and unhappiness for people and families with his illegal war and lies.

i really wish the very worst for blair and his wife and children for the rest of their lives

Not with you on the children, what a cross to bear to be parented by those two but yes, Blair and the wife are just the worst examples of humanity to me. They play the Labour caring for the people and human rights lawyer up front and enrich themselves causing great misery in their actual actions. Two more narcissistic players you could not find.

[endgame]

Blair makes me sick. Devious little weasel. I liked the bit when Marr said "how do you feel knowing that you cant go out without a body gaurd as you are hated so much". He really squirmed.

Another notable point was when he said "tough decisions need to be made about Iran", suggesting to me that a military attack is definatly on the cards.

The man caused so much damage and yet he refuses to acknowledge any of it. As Marr said, many want to see you in the Hague.

Bring on the revolution......

[newbonic]

Are you trying to say Blair played the housing markets (and with his insider information) made plenty of 'stashes' for himself & his family?

Bastards - 2005, exact timeframe when I woz annoyed enough to post on HPC

Ditto!

[Guest Elephant_In_The_Room]

"Ex-politician starts to tell truth in Memoirs" shocker

I never understood the hype with Blair. Millions fell for his so called Charisma.

I believe Adolph possessed some of that.

[cybernoid]

Interesting that Andrew Marr said "Was it not just a long extended bubble, based on increasing house prices, debt and maxing out on credit cards?" Or words to that effect.

Blair said no, but I bet he must suspect deep down that it was.

I interpreted his answer as 'yes'. He basically said it was a long extended bubble in response, but using different terms.

He is fully aware of the reality of what he has done in all areas of government, that interview was just more blair. He is always 'on', he is always thinking 'how can this answer be interpreted', 'how did we decide i would approach this question', 'what was the preprepared answer to this one that campbell suggested', etc etc. There was no openness there, just more misdirection, outright lies, faked sincerity, bullsh1t. I wonder if he is even capable of anything else nowadays. Does he even remember the truth anymore ?

A politician. A repugnant man.

[billybong]

...drive value...

They weren't capable of driving an omnibus never mind value. Mind you it's doubtful if the current lot are any better.

[billybong]

"We should probably have taken a tougher fiscal position than we did." (in 2005)

Yes but after the general election in 2005 when he said if elected he would definitely remain for a full term he wouldn't have been able to leave with the economy on its exact high almost halfway through the term in 2007.

[billybong]

But the former prime minister said he did not predict the financial crisis...

Pure luck that he left mid 2007 at the exact point just before the financial crisis and collapse

[porca misèria]

the keynsian thinking they pretended to adhere to states that you put money aside during the good times, for use in the bad times. much lile a squirrel buries hazelnuts in the summer.

squirrels have been doing this for millions of years.

a squirrels brain is about as big as a hazelnut

please feel free to use this analogy in pmq prime minister

Goes back a bit further than Keynes in human affairs, too. Genesis 41 is an early example

[MrPin]

Goes back a bit further than Keynes in human affairs, too. Genesis 41 is an early example

Was that the double album, with pixies on the front?

[Realistbear]

http://www.bbc.co.uk/news/business-11153166

Revisionist history at it's finest.

Gordon will get his place in history, although I highly doubt it will be with any positive distinction. You get the feeling Tony is trying to make sure he escapes the blame for this mess.

The buck stopped with TB. Brown's catastrophic failings as a chancellor were TB's fault as he failed to sack him when it should have been obvious that he was destroying the economy. End of story IMO.

[interestrateripoff]

Spot on,

This point is really lost on the mainstream media, and on mainstream economists. Keynes would roll over in his grave if he knew what was being done in his name.

One expert happens to say 'in certain circumstances you could spend money' and the politicians then print like mad at every opportunity, without any concern for what the expert actually said.

It's amazing that the mainstream media can't pick up on this narrative, deficit govt spending was already in place before the crash to cover the structural flaws in the economy.

Although I suppose as Brown had abolished boom/bust there was no need to save a surplus as there was no boom.