Man in a Shed: Fred's on the money, Gordon's putting us in the s***.

Wednesday, December 17, 2008

Fred's on the money, Gordon's putting us in the s***.

Just seen this over at Guido's. Pretty much raps up the current situation ...

just remeber all this has been tried before. It was a Labour prime minsiter who had to say "We used to think that you could spend your way out of a recession and increase employment by cutting taxes and boosting government spending. I tell you in all candour that that option no longer exists. "

3 comments:

James Higham said...: How long do you think it would take to get us out of this debt? 23 years? 29?; 6:44 pm
Man in a Shed said...: I suspect the way out of the debt will be inflation, if foreigners are stupid enough to lend us money in Stirling.

Otherwise bear in mind we just paid of the Yanks for WWII about a year ago, and Brown plans to put us far deeper into debt than that to win his re-election.; 7:09 pm
Wildgoose said...: The Government is obviously gambling on inflation to save them. But that has long term costs to the wider economy of higher interest rates, more difficulties in borrowing and the destruction of an entire generation's savings.

Fiat currencies are only worth what popular sentiment thinks they are worth - and zaNuLabour seem determined to drive that sentiment into the ground and all our savings with it.

The only way to save the economy now is massive reductions in Government spending and a drive to reduce our long-term liabilities such as unfunded public sector pensions. We should raise the retirement age and switch pensions over to money-purchase schemes.

Politically this looks impossible, zaNuLabour won't do it to their core constituency and David Cameron is just Tony Blair mk II blown wherever the opinion polls take him, so he won't do anything either.; 9:14 am

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The pound in your pocket

"We used to think that you could spend your way out of a recession and increase employment by cutting taxes and boosting government spending. I tell you in all candour that that option no longer exists." James Callaghan

“The trouble with theoretical economists is that they don't understand that when you have a deficit, you can only finance it by borrowing, and you've got to persuade people that it's worth lending money to you and that they'll get their money back... there's no way of escaping it.” Dennis Healey during the 1976 Stirling Crisis.

"Lenin is said to have declared that the best way to destroy the Capitalist System was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens ... Lenin was certainly right. There is no subtler, no surer means of over-turning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose." John Maynard Keynes, 1920.

"To preserve [the people's] independence, we must not let our rulers load us with perpetual debt. We must make our selection between economy and liberty, or profusion and servitude." Thomas Jefferson, President of the United States of America,1801-1809.

Inflation is taxation without legislation .. Milton Friedman