Jun 05

As Labour Party supporters gleefully cheer a double dip recession and Tories celebrate the pain to be inflicted on the public sector and poor by that and the spending cuts all I can ponder is the future. Continue reading »

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Apr 27

Standard and Poor have brought the guillotine down on any Greek pretension that they have any say in their economy by reducing their debt status to junk bonds. One feels for Greek workers but unless they are planning or willing or able to junk Capitalism they have no choice. Time for the Greeks to grow up and take the medicine.

What really showed Greece up was that the EU and IMF agree a rescue fund and the weak willed Greek Prime Minister sees an easy way out by just grabbing this money and don’t do what is required as though the markets would just swallow that – make their problems everyone else’s problems. If anyone bails them out now they are burning money that is in short supply in the world at present.

For me double dip be damned the British need to decide to cut early. We do not want to be caught in a Tsunami of bad debt next year with Japan, and the rest of the PIIGS nations in a race to the bottom. Plus as we are not in the Euro there will be no queue of people to bail us out. In a world that could be deflating around us even the growth dependent cuts planned may not be enough anyway.

Like Greece we are not dumping capitalism anytime soon so any other policy is roulette. The reality in the modern world is this you either behave or have your ball taken away from you. Greece has had its taken away and the only way to get it back is to be serious about living within their means.

This is one policy that I kinda back the Tories on because to cut sooner creates market confidence and is not a hostage to fortune. We don’t know what the world will be like in a year’s time and I’d rather not find out how a nation running huge untackled deficits with low market confidence lasts in a Globalised Capitalist world.

Sadly this could develop in a race to the bottom.

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