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Liam Halligan From The Dt Says...

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I've been saying the same for months now...

When the "sub-prime" fiasco first hit, many Western politicians claimed it was caused by such "global imbalances". So the credit crunch, along with the deepest Western recession in generations, wasn't the result of regulatory myopia and massive financial fraud. It has nothing to do with the Western world keeping interest rates too low for too long, or our governments and citizens spending like crazy, gorging ourselves on debt. The "global imbalances" thesis says it wasn't us, it was "them" – China and all those other cheating Eastern countries that had the audacity to produce and extract goods the rest of the world wants, run current account surpluses and build themselves a platform of economic stability.

I exaggerate – but not a lot. It really is the "Davos view" that the rest of the world "flooded the West" with savings, "forcing" us to keep interest rates low, so we "had to" take on more debt.

In reality, capital moves around the world all the time. As long as it is financing lawful activities, nothing should be done to stop it. The "global imbalances" thesis is a myth, a tawdry exercise in Western self-pity and blame-shifting. Taken further, it could even be used to justify protectionism and madcap capital controls.

My link

It's time for the West to take a bit of personal responsibilty and stop blaming foreigners for being "predatory lenders". The UK invented capitalism for goodness sake, to say that we were taken advantage of by China; a country that has only had a capitalist economy for about two decades is stretching credibility to it's limits.

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:lol:

He's always good for a laugh isn't he?

In reality, capital moves around the world all the time. As long as it is financing lawful activities, nothing should be done to stop it. The "global imbalances" thesis is a myth, a tawdry exercise in Western self-pity and blame-shifting. Taken further, it could even be used to justify protectionism and madcap capital controls.

So if nothing should be done to stop it he's basically advocating increasing western deficits, increased Chinese protectionism/mercantilism, lower western rates, and presumably another housing markets (or other) western asset bubble.

Who does he work for again?

Edit: One does wonder why Messrs Barclay and Barclay don't take his advice more seriously and replace expensive journos like Halligan with dirt cheap Chindians. They're really missing a trick. Torygraph's capital is wasted funding UK journo lifestyles and really ought to be more productive by flowing East as Halligan proposes. One less journo is no loss to anyone after all.

Edited by Red Karma

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The euro was created because the last generation of German leaders felt that, for political reasons, they owed the rest of Europe an apology.

Off the main thread topic but - WOW! That's a new one. Never heard it put like that before - the euro was created because they owed the rest of europe an apology, well I never.

Now that the euro's being allowed to be counterfeited in Ireland (and who knows where else now) is that all part of the apology.

Edited by billybong

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So if nothing should be done to stop it he's basically advocating increasing western deficits, increased Chinese protectionism/mercantilism, lower western rates, and presumably another housing markets (or other) western asset bubble.

The only thing we could do about it would be to implement stringent tariffs and quotas but that's never going to happen because:

1) These things are decided at the EU level

2) The Chinese are currently bailing out Portugal etc and if anything that means an increase in free trade, and

3) We're never going to pull out of the EU.

It's a silly idea anyway, the pain of import restrictions would easily dwarf the economic gains, our politicians know this which is why Cameron is busy forming relationships with the East, as opposed to pretending they don't exist.

Edited by Chef

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It's a bit rich blaming the Chinese when it was the West's multinationals/corporations etc investing there that was one of the main catalysts for China's emergence along with continual encouragement over many years by Western governments (as well as the Chinese). The blame game is just one of those red herring thingymabobs. All in it together actually does apply in that connection.

Edited by billybong

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It's a bit rich blaming the Chinese when it was the West's multinationals/corporations etc investing there that was one of the main catalysts for China's emergence along with continual encouragement over many years by Western governments (as well as the Chinese). The blame game is just one of those red herring thingymabobs. All in it together actually does apply in that connection.

Its both, but the western multinationals will lose there advantage as the chinese steal there tech.

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I've been saying the same for months now...

My link

It's time for the West to take a bit of personal responsibilty and stop blaming foreigners for being "predatory lenders". The UK invented capitalism for goodness sake, to say that we were taken advantage of by China; a country that has only had a capitalist economy for about two decades is stretching credibility to it's limits.

+ 1

Good find Chef.

Since Britain has its own currency it would have been easy for the UK monetary authorities to curb the credit bubble (via IRates and/or mortgage controls), and this would also have curbed the consumerist bubble and the foreign trade deficit.

Edited by Tired of Waiting

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  • 312 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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