The mess we inherited watch

Althea · **Posted:** Sat Apr 21, 2012 10:14 pm

Abernathy wrote:

Not really. The UK economy was not in deficit before the global financial crisis hit in 2008. Brown offloading some of the gold reserves had no connection to that whatsoever - on the contary, it brought cash into the exchequer, albeit not at the price that could later have been obtained for gold - but Brown was no psychic. The current deficit was entirely caused by the essential emergency measures (bank nationalisation, and so on) that Brown's government had to take to prevent the crisis becoming a full-blown depression (and which were followed by every other major world economy). There is no truth whatsoever in the Tory/Lib Dem lie that the deficit prevailing in 2010 and still with us now was due to Labour profligacy.

I should have said Brown couldn't have predicted this. :p

So, really, what Brown & Co did was apply a tourniquet whereas Osborne has... hacked the limb off above it?

Big Rob · **Posted:** Sat Apr 21, 2012 10:15 pm

Abernathy wrote:

Not really. The UK economy was not in deficit before the global financial crisis hit in 2008.

Correct.

Which is the big fat lie that the UK right is spinning out now (that this is a direct result of nu labour).

Abernathy · **Posted:** Sat Apr 21, 2012 10:16 pm

Yes, you could put it like that.

Althea · **Posted:** Sat Apr 21, 2012 10:18 pm

So who's going to find the prosthetic?

Big Rob · **Posted:** Sat Apr 21, 2012 10:18 pm

Abernathy wrote:

Yes, you could put it like that.

There's another way of describing bare face lying?

Oooh you Brits and your politeness....

Malcolm Armsteen · **Posted:** Sat Apr 21, 2012 10:21 pm

Completely correct.
When Brown reduced (not 'sold-off') the gold reserves he was supported by the Tories.

You have to take into account quite how mendacious the Tories are.

Althea · **Posted:** Sat Apr 21, 2012 10:23 pm

Malcolm Armsteen wrote:

Completely correct.
When Brown reduced (not 'sold-off') the gold reserves he was supported by the Tories.

You have to take into account quite how mendacious the Tories are.

Sort of like "Go on, do it, we won't tell on you!" when Brown was thinking of playing Pooh Sticks, but afterwards they told the other kids what Brown did and ridiculed him for it?

Abernathy · **Posted:** Sat Apr 21, 2012 10:25 pm

You've taken that too far.

Althea · **Posted:** Sat Apr 21, 2012 10:26 pm

Hey, I find metaphors easier and more fun

Big Rob · **Posted:** Sat Apr 21, 2012 10:28 pm

Hey look at this graph. Do I see a surplus under Labour?

Quote:

In 1997 Labour inherited a budget that was actually in balance. After a painful and turbulent decade under the Tories, the public finances had finally been brought under control. But after four years in office Gordon Brown took out the country's credit card and let rip. By the end of 2009-10 our annual deficit had ballooned to £170.8 billion.

This graph shows how the UK's budget deficit has fluctuated as a percentage of the country's economic output (GDP):

http://www.debtbombshell.com/britains-b ... eficit.htm

He didn't exactly 'let rip'. Not Greek style anyway....

Big Rob · **Posted:** Sat Apr 21, 2012 10:33 pm

So it appears the country may have been in deficit however not to any unmanageable extent and nothing worse than previous Tory governments.

Althea · **Posted:** Sat Apr 21, 2012 10:36 pm

And if you look, the graph goes up sharper under the Tories than it did under labour. Basically they make things twice as worse in... no time at all.

Abernathy · **Posted:** Sat Apr 21, 2012 10:41 pm

If you're interested in an accurate analysis of why the global financial crisis (and the UK deficit) occurred, you can't do better than John Lanchester :

http://www.amazon.co.uk/gp/product/014104571X/ref=pd_lpo_k2_dp_sr_1?pf_rd_p=103612307&pf_rd_s=lpo-top-stripe&pf_rd_t=201&pf_rd_i=1846142857&pf_rd_m=A3P5ROKL5A1OLE&pf_rd_r=01VET68TP8M0GHK2C7S6

Big Rob · **Posted:** Sat Apr 21, 2012 10:43 pm

Althea wrote:

And if you look, the graph goes up sharper under the Tories than it did under labour. Basically they make things twice as worse in... no time at all.

Well not applying the principle of Keynes in a depressed economy makes matters worse. Having large scale unemployment means less revenue which is always the big driver of deficits. Even if you got rid of welfare the tax money does not come in and welfare helps economies more than it hinders them. That money is nearly always spent on goods and services rather than sitting in the coffers of the rich.

A depressed economy always equals depressed demand. Christ the right don't even like the laws of supply and demand when it does not suit them.

Big Rob · **Posted:** Sat Apr 21, 2012 10:45 pm

Abernathy wrote:

If you're interested in an accurate analysis of why the global financial crisis (and the UK deficit) occurred, you can't do better than John Lanchester :

http://www.amazon.co.uk/gp/product/014104571X/ref=pd_lpo_k2_dp_sr_1?pf_rd_p=103612307&pf_rd_s=lpo-top-stripe&pf_rd_t=201&pf_rd_i=1846142857&pf_rd_m=A3P5ROKL5A1OLE&pf_rd_r=01VET68TP8M0GHK2C7S6

Hmmm is this the same book?

http://www.amazon.com/I-O-U-Why-Everyon ... 695&sr=8-5

Maybe 'Murrikans don't understand Whoops....

*edit I believe it is.... soooooooooo cheap ... even if it is used and we have Amazon Prime... So why not....

The mess we inherited watch

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