Something quite simple to consider next time you hear Brown waffling about this ‘Global credit crunch caused by the miss-selling of sub-prime mortgages in America’: if it is the case that it’s global and the finger of blame points squarely across the Atlantic, why is the Pound plummeting against the Euro? Why is it that a year ago 1000 Euros equalled £660 and now equals £880? (Or rather, £1000 now with the commission) Why isn’t Europe suffering quite so badly?
One comment I came across:
“The problem is the UK economy doesn’t have a leg to stand on,” said Peter Spencer, economic adviser to the Ernst & Young Item Club. “It’s very hard to know where the floor for sterling might be when there’s nothing to support it.”
This is entirely the point. We’ve got buggerall industry here and buggerall productivity, apart from piles of bureaucratic shite in the public sector. Now think about this: one in five people in this country work for the state with an average salary each of about £25,000. Do the math. This means every year the average payout per worker who actually contributes to our GNP is over £6000 to support this lot. Then take into account that every pound going through the Treasury comes out at the end of the convoluted bureaucratic process worth 30 pence. Then take into account gold-plated public sector pensions… How does this work then? Really, unless there’s a sudden worldwide demand for Diversity Managers and Outreach Workers we’re not going to be out of this hole for a very long time.
As for Brown’s wonderful financial brain (with which he has apparently saved the world), even German socialists are wondering if he’s lost the plot. The idea of borrowing more money to get out of debt seems more like something a council estate loan shark would recommend. Brown is quite a few beads short of the full abacus.