Friday, October 31, 2008

“Gordon Brown is like a gambler on a losing streak”

Financial crisis: Labour will be out of power for a generation

Before the Government adopts full-blown Keynesian policies, it should examine their effect on Japan after the bursting of its “property bubble”. Between 1991 and 1998, Japan spent 100 trillion yen on new railway lines and other public works. Little good did it do. Its economy stagnated. Since 1991, Japan’s government debt as a proportion of GDP rose from 64 per cent of GDP in 1991 to 171 per cent this year. Japan is in a debt trap it can’t escape.

Posted by sold out @ 08:02 AM (602 views)
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8 thoughts on ““Gordon Brown is like a gambler on a losing streak”

  • little professor says:

    Japan has just announced a cut in interest rates from 0.5% to 0.3%. Wonder how long it will take for them to go to zero again.

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  • little professor says:

    http://news.bbc.co.uk/2/hi/business/7701319.stm

    Over a decade on, they’re still trying to spend their way out of the slump in Japan.

    Today’s interest rate cut came after an 11.7 trillion yen package unveiled in August by Mr Aso’s predecessor, Yasuo Fukuda.

    As well as cutting highway tolls and increasing loan guarantees that have been offered to small companies, there will be tax cuts and other benefits for Japan’s struggling households.

    The new package includes an expansion of tax-exempt housing loans to boost the struggling property market, funding for care of children and the elderly, and support for unemployed young people.

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  • I just made a considerable amount converting JPY cash assets into GBP at JPY147.34 per GBP.

    Wonder if my luck will hold out …

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  • stillthinking says:

    “One thing we can be sure of: it will be horrible. But once the consequences of Gordon Brown’s fiscal management are plain, it will take a generation before the voters trust Labour again. ”

    bit parochial isn’t it? The down side is an economic collapse, -but- on the plus side the conservatives will have a decade in power.

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  • mark wadsworth says:

    Morons. 100 trillion yen is about £5 billion, or £7 billion a year. That’s about equivalent to what the UK (a much smaller economy) spends on welfare fraud every year.

    Well done Paul. I bailed out of JPY last Friday, but stuck it into AUD not GBP just for a bit of excitement.

    @ LP, they really are morons. According to the Book Of Laffer there is no point doing retrospective tax cuts or subsidising mortgages (which just reflate a housing bubble, to the extent that they had one). The key is to cut tax rates on income and production for the future.

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  • mark wadsworth says:

    Sorry, my maths was way out!

    100 trillion yen = £500 billion, over 7 years is £70 billion a year. So that is a fair wodge of cash.

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  • Thats not good enough. Wheres the accountability? Blair and Brown should do time. The Labour party should be dismantled.

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  • the worrying thing is to have to wait another 18 months for the general election to be held. Gosh what can new labour invent during that period ?

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