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"our Mate" Gordo Tells The Others That They've Done It All Wrong

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http://www.independent.co.uk/news/business/news/brown-blames-us-and-europe-for-throwing-away-recovery-2333263.html

Markets in turmoil:

Brown blames US and Europe for 'throwing away' recovery

Former prime minister mounts an extraordinary attack on world leaders for mishandling economic crisis and risking 'a decade of joblessness'

By Matt Chorley, Jane Merrick, Stephen Foley and Margareta Pagano

Sunday, 7 August 2011

Gordon Brown today launches an extraordinary attack on the leaders of America, France and Germany, accusing them of being "wrong" on the big economic decisions and failing to heed his warnings over the EU debt crisis.

The former British prime minister breaks his silence to claim wrong-headed EU leaders, including German Chancellor Angela Merkel and French President Nicolas Sarkozy, had "thrown away" another chance of economic recovery. They ignored his warnings about their banks' debt levels and are exacerbating the financial crisis which, in turn, risks condemning millions of people to a decade of joblessness.

In an article for The Independent on Sunday, Mr Brown claims Europe has wrongly presented the crisis as "one-dimensional" and, in doing so, has simply demanded "even more austerity". A summit last month to secure a bailout for Greece came to the "wrong conclusions" after three years of the "wrong analysis" of the scale of the problem.

And he claims the US refusal to sanction a new economic stimulus, raise taxes or cut entitlements is "choking off yet another potential engine of world growth". In a major blow for the US, the agency Standard & Poor's downgraded its rating by one notch to AA+, fuelling fears of more turmoil in markets around the world next week.

Mr Brown's remarkable intervention will reinforce comparisons between the flurry of activity surrounding his efforts to rescue the global economy in 2008, with the apparent reluctance of European leaders and finance ministers to curtail their holidays to deal with the crisis.

In a demolition of the political response to the latest global economic meltdown, Mr Brown warns: "Economic necessity was sacrificed to what was politically expedient." Dithering means "the next crisis gets ever closer and threatens even more danger", Mr Brown writes, before setting out his "global plan" for fixing the crisis which, if ignored, he warns will trigger "the most punishing of future outcomes".

Mr Brown claims the "lethal combination" of a fiscal crisis, a banking crisis and low growth "threatens a tragic roll call ... of millions of European citizens unnecessarily condemned to unemployment and a wasted decade".

The growing political row follows a terrible week for the stock markets, which suffered their worst falls since 2008. The FTSE 100 index plunged 10 per cent, the Nikkei fell by more than 5 per cent and the S&P 500 index was down by 7 per cent, prompted by worries that Europe's politicians have failed to solve the eurozone crisis and by brinkmanship in the US over the deficit deal.

David Cameron, on holiday in Tuscany, last night spoke by telephone to Mr Sarkozy, who holds the presidency of the G7 and is under pressure to call an emergency summit. But in a withering attack, Mr Brown warns: "No number of weekend phone calls can solve what is a financial, macroeconomic and fiscal crisis rolled into one, now needs a radical restructuring of both Europe's banks and the euro, and will almost certainly require G2O and IMF intervention."

Vince Cable, the Liberal Democrat Business Secretary, yesterday urged calm, repeating the government's line that Britain is "in a fairly good position" because the markets have confidence in the deficit-reduction plans. And in a move likely to anger George Osborne, the Chancellor, Mr Cable threw his weight behind China's call for a secured global reserve currency in response to the US downgrading.

China, the biggest foreign holder of US government debt, told the country to "come to terms with the painful fact that the good old days, when it could just borrow its way out of messes of its own making, are finally gone".

The decision by Standard & Poor's to strip the US government of its gold-plated AAA credit rating is the first time in 70 years that US debt has been judged anything other than risk-free. The debacle over raising the legal debt ceiling and the disappointing deficit-reduction plan adopted last week proved the final straw for S&P. "The political brinksmanship of recent months highlights what we see as America's governance and policymaking becoming less stable, less effective, and less predictable," the rating agency said.

The White House called S&P's maths "flawed" and complained that an early draft of the downgrade included erroneous assumptions on future government spending. S&P said the differences were insignificant.

Moody's and Fitch, the other two major credit rating companies, affirmed the AAA grade on US debt last week, albeit with a negative outlook. In Europe, the markets expect the European Central Bank to intervene to buy up Italian and Spanish bonds to indicate confidence after the cost of borrowing for those two countries soared last week to euro-era highs of more than 6 per cent.

The crisis in numbers

£150bn

This week’s loss in value of the UK’s top 100 companies

£2.8trn

Wiped off the value of stock markets worldwide over the past 10 days

£169bn

Invested by pension savings in UK shares and £108bn is invested in stocks and shares and shares linked ISAs by UK customers

120%

Italy’s debt as a per cent of its GDP

£1trn

Total of Italy and Spain’s debts

£794m

RBS reported half-year loss after taking provision on Greek debt

600

Number of points the FTSE 100 dropped on Friday, the biggest drop since the financial crisis of three years ago when it lost 1,000 points in a week

Edited by Dave Beans

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In an article for The Independent on Sunday, Mr Brown claims Europe has wrongly presented the crisis as "one-dimensional"

The above is a Independent story about his story saying everyone is doing it wrong . What's Delusional Brown's solution? Spend more money, stop the cuts, stop house prices from falling and make them begin rising again?

Here is Gordon Brown in the Independent. I'm about to read it myself.

http://www.independent.co.uk/opinion/commentators/gordon-brown-europe-is-still-burying-its-head-in-the-sand-2333170.html

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Reminds me of Krusty the Klown's autobiography (self-serving and full of glaring omissions).

Tell me Gordon, what colour is the sky in your world?

If you had truly "saved the world" in 2008, why is the global economy still in such turmoil?

"Economic necessity was sacrificed to what was politically expedient." Dithering means "the next crisis gets ever closer and threatens even more danger"

Crash Gordon delivers his own epitaph.

In Gordon's delusional worldview he imagines us all begging him to save us.

"Oh Gordon, save us, save us! You are 'The One' who will bring balance to the Force, destroy the Matrix and defeat evil Emperor Ming".

flash_gordon.jpg

Still, Gordon has achieved the impossible, he's made me despise him even more than I did before.

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edit: The article seems poorly written.

An example:-

"And, at its moment of truth last month, Europe needed to summon up the power to restructure its ailing banks radically, to co-ordinate monetary and fiscal policy, and make fundamental reforms to the euro.Specifically, the Brussels summit needed to accept the inevitability of fiscal transfers; trigger their precautionary facility, including for Italy and Spain; and, as a minimum, expand the European stability fund, underpinning it with a backstop facility far bigger than its current size.

"

Edited by Ash4781

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Poor old Crash, he really has lost it. He was so convinced he'd "saved the world" that he felt comfortable to ignore his constituents and parliamentary responsibilities and go on speaking tours. He's now seeing the last glimmer of the mountain of debt he urged all world leaders to throw at the banks finally extinguished by the greed of their management. Oh well at least he's got a nice fat pension to retire with. :angry:

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Its not working, so maybe he is right.

What isn't working? You mean working, reducing our debts, living within our means isn't producing the fantasy debt fueled growth of the last decade?

Well who would have thought it!

After the party comes the hangover, the only alternative is to stay drunk. Which will postpone the day of reckoning, until it kills you.

Gordo's only answer to having partied too hard is to stagger to the corner shop at 6am and try and beg a bottle of buckfast off the chinese guy that runs the shop.

Gordons focus on "joblessness" in rhe article is the sign of a withered intellect. What he is really asking is that people be kept working for the benefit of those who screwed up and should have lost their shirt. Gordon is a slave driver in effect.

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The above is a Independent story about his story saying everyone is doing it wrong . What's Delusional Brown's solution? Spend more money, stop the cuts, stop house prices from falling and make them begin rising again?

It's this:

crashcard.jpg

post-15752-0-79505900-1312704424_thumb.jpg

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. They ignored his warnings about their banks' debt levels and are exacerbating the financial crisis which, in turn, risks condemning millions of people to a decade of joblessness.

Wha...?

When did he warn the French over their banks debt levels? Was it just after they drowned due to, er, the weight of their own debt?

Or was he so obsessed with French banks, he overlooked ours.

The way he talks you'd think things were jolly marvelous before May 2010.

Utterly, utterly mad.

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FFS

"He's mad. He's madder than Mad Jack McMad, the winner of this year's Mr Madman competition."

The guy should be in the Tower (for treason) or some sort of asylum, never mind on the world stage as some sort of oracle.

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edit: The article seems poorly written.

An example:-

"And, at its moment of truth last month, Europe needed to summon up the power to restructure its ailing banks radically, to co-ordinate monetary and fiscal policy, and make fundamental reforms to the euro.Specifically, the Brussels summit needed to accept the inevitability of fiscal transfers; trigger their precautionary facility, including for Italy and Spain; and, as a minimum, expand the European stability fund, underpinning it with a backstop facility far bigger than its current size.

"

Crash Gordon's prescription appears to be 'Do whatever you are already doing but faster and more extreme' with the added madness of getting the bailout of southern europe governments and northern european banks done and dusted. Such a gross moral hazard as that, which would see the entire continent's quality of life degrade as a result of the cost, is by no means inevitable. The EFSF is already based on Monopoly money why make it an even bigger fantasy?

Crash Gordon is a bent weather vane not an oracle.

EDIT: Changed **** to vane.

Edited by jareth

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Its not working, so maybe he is right.

You're assuming the alternative debt = wealth approachs is better.

I think the Greeks, Spanish, Portugese and Italians have proved that wrong.

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Guest spp

Lest we forget, at one time he was in the running as head of IMF.

Who knows, if Christine Legarde gets derailed by the corruption allegations, he still could be. :o

"will almost certainly require G2O and IMF intervention."

:ph34r:

Edited by spp

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You're assuming the alternative debt = wealth approachs is better.

I think the Greeks, Spanish, Portugese and Italians have proved that wrong.

Mathematics alone prove's it wrong.

Debt might create growth (although given how much inflation stats are massaged, i doubt it even does that) but in order to do so, we must borrow >10% to get <1% 'growth'

That's nothing more than ponzi-nomics. Doable for a few years.

Neither party offers an alternative to this, just things collapse a bit quicker under liebours debt load.

Write off debts, Balance the trade situation, let the banks go and fix the STRUCTURAL deficit (ie fire the million or so public sector non-jobbers hired BEFORE the SHTF)

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Mathematics alone prove's it wrong.

Debt might create growth (although given how much inflation stats are massaged, i doubt it even does that) but in order to do so, we must borrow >10% to get <1% 'growth'

That's nothing more than ponzi-nomics. Doable for a few years.

Neither party offers an alternative to this, just things collapse a bit quicker under liebours debt load.

Write off debts, Balance the trade situation, let the banks go and fix the STRUCTURAL deficit (ie fire the million or so public sector non-jobbers hired BEFORE the SHTF)

We've used debt to create growth for decades, but the entire system was ponzi always requiring every larger amounts of debt to create smaller and smaller amounts of growth. We have hit the limit of this growth pattern.

However if Gordon was still in charge we'd be crashing quicker and faster, although the next election is going to be very interesting.

However Gordon still apparently thinks he saved the world yet fails to grasp how he saved the world put is in this mess in the first place. Paulson was right to let Lehmans fail but that was all about political bluff to get a bailout for the other banks which promptly came.

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The former British prime minister breaks his silence to claim wrong-headed EU leaders, including German Chancellor Angela Merkel and French President Nicolas Sarkozy, had "thrown away" another chance of economic recovery. They ignored his warnings about their banks' debt levels and are exacerbating the financial crisis which, in turn, risks condemning millions of people to a decade of joblessness.

Strange. Warnings? During the run up to the 2010 general election he was saying that everything was fine and dandy.

Edited by billybong

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Mr Brown claims the "lethal combination" of a fiscal crisis, a banking crisis and low growth "threatens a tragic roll call ... of millions of European citizens unnecessarily condemned to unemployment and a wasted decade"

Doesn't he mean another wasted decade - to add onto the many previous decades that UK politicians have wasted.

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"No number of weekend phone calls can solve what is a financial, macroeconomic and fiscal crisis rolled into one, now needs a radical restructuring of both Europe's banks and the euro, and will almost certainly require G2O and IMF intervention."

:lol: He's still after the IMF job.

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The White House called S&P's maths "flawed" ...

:lol::lol:

Does the White House even know what maths is. It's getting more and more farcical - if it weren't so serious..

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It's certainly correct that Merkin/Sarko have dramatically worsened the situation in the EZ with their nonsensical prevarication, obsession witjh forced austerity on the piggies and refusal to accept their own banksters are the problem.

The Republicans too with their bonkers empiric victory over zero tax rises for their billionaire backers and obsession with an entirely arbitrary debt ceiling whilst supporting their corporate globalists and offshoring of jobs demonstrates their imbecilic parochialism.

Then we have Comedy Dave and the Bullingdon Boys who haven't delivered a single promise and are similarly obsessed with cutting taxes for the wealthiest.

Then we have Berlusconi............

What an incompetent shower of a generation! (Brown included)

Look, unwind globalism, unwind the creditor/debtor paradigm, force Asia off the pegs, tax the hoarders and we'll be getting somewhere.........it's plain as day follows night globalism has failed miserably.

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  • 334 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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