Thursday, Dec 10, 2009

Finally someone spoke the truth about the UK

Financial times: Alistair-in-wonderland believes in santa claus bnp paribas says

This is a total demolition of Alistair Darling and Gordon Brown. Enjoy

Posted by janky @ 11:16 AM (1048 views)
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1. Roberto Birquet said...

I only note that the article was full of anger and venting of spleen. Housepricecrash over-eggs it as a "total demolition of Alistair Darling and Gordon Brown. Enjoy". I'm sorry, but what is new? your headline is more Daily Mail headline than an intro into something far more revealing. Man from BNP Paribas is angry at "political" PBR. No 1, of course it is political, it was delivered by a politician six months before a general election, get over it. 2. Man at big investment bank angry over tax on his bonus. er, so what?

The PBR has not set out how to cut the deficit. Everyone knew that the government's policy is not to cut the deficit YET - the question is, is there a credible plan to cut under their , er "imposed deadline"? That is a big question, but it is highly debatable whether they should cut it yet. That has become a big discussion point that seems to revolve around two macroeconomic theories; monetarism dominant for last 30 years, before its enormous implosion in 07/08; Keynesianism, dominant before its implosion in the 1970s. Both are evidently faulty. anyone who says otherwise is in denial.

But what of the plan? First, the markets did not react particlualry badly, as the defict has largely remained as was - so neutral as many oobservers noted. The BNP Angry man says deficits have been revised up every since except 2001; but not this year, he omits to add. But the big doubt is that the government is banking - what a poor word in the modern world - on a 3.5pc growth for 2011 on to bring down the govt deficit. That is the major concern - it almost certainly ain't gonna happen - 2pc would be nice. But it does mean that growth is the major weapon they are looking for. That is where debatable and concerned meet. But the markets as I see them are giving the government time. The likelihhood is if growth gets to 2pc, there will remain a hole, although a manageable one with one of two policies. Probably (tax rises Labour), Public service cuts, Tory. Neither has a vision beyond their prejudices.

The real "demolition of Alistair Darling and Gordon Brown" came in a two-sentence reply from the best recession politician around, Vince Cable.
He said in Parliament yesterday that the UK economy had been built on sand, explaining that that was a belief in a large financial sector and ever-rising house prices, which had brought us to near ruin. The recovery so far has been only in those two sectors, which begs the question what has been learned and where [the Hell] are we going?

Now that is a demolition and a succinct one. Had he been elected leader of his party, he'd have my support. As it is I know not whom to vote for if anyone. A root and branch overhaul of economic policy and in particular, of high finance, is required. I hear little from Labour, frankluy - even less from Cameron/Osborne even less - and Cable is not his party leader. A travesty and pretty depressing.

Thursday, December 10, 2009 04:21PM Report Comment

2. mr g said...

Not to worry, Christmas is coming and the sheeple will be able to drink themselves stupid and continue in their state of denial.

Thursday, December 10, 2009 08:47PM Report Comment

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