….in the sense that it’s very easy to make grandiose claims in opposition, in the sure knowledge that you won’t ever be tested on them. In John Redwood’s brilliant phrase, the egregious Ed is a punk Keynesian. The Knife has commented before on Blinky et al’s abuse of Keynes’ teachings.
In the bunker phase of his noisy leadership campaign, Ed is lashing out at…well…nearly everyone apart from Barack and his media chums like Paul Krugman, who is now slowly realising not all is well. Mind you, that’s because Barack is not spending enough. Nobel prizes, like A-levels, ain’t what they used to be.
As Jean-Claude Trichet , who is the not entirely stupid head of the European Central Bank (and the man whose job was/is coveted by the deluded Gordon) said this week:
“The lesson from past history is that dealing with the legacy of accumulated imbalances is not simply a duty to be fulfilled after the economic recovery, but rather an important precondition for sustaining a durable recovery. The primary macroeconomic challenge for the next 10 years is to ensure that they do not turn into another ‘lost decade.’…the option of ‘living with the debt’ indefinitely is not a solution to the challenges currently facing policy makers, nor is it a means to ensure sustainable economic recovery. Given the size of the accumulated public debt, fiscal consolidation will have to be ambitious.”
Bearing in mind the ECB has had to mastermind the bailout package for Balls-like big spenders Greece, Trichet seems to be on solid ground. The only reason the US is still hanging in there despite its truly mind boggling debts is because it’s the US. Nobody really believes it can fail like Greece, probably correctly.
However, such is the headlong drive into debt masterminded by Obama and friends, with no realistic payback plan, things may be about to change there. It seems that they’re in too deep to really embrace a bit of austerity, but as the proverb goes: the best time to plant a tree is 20 years ago, the second best time is now.
Ben Bernanke, Federal Reserve chairman, at the same Jackson Hole conference as Trichet, said:
“The issue at this stage is not whether we have the tools to help support economic activity and guard against disinflation. We do. The only issue, is whether the benefits of each tool, in terms of additional stimulus, outweigh the associated costs or risks of using the tool”.
Good point, and Dave ‘n George have obviously decided that the associated costs and risks do indeed outweigh the benefits of yet more “stimulus”.
Britain is not the US. To be fair to Blinky, he certainly has balls. He’s the only one of the five dwarves to really talk about the economy, and not only that, he magnificently fails to acknowledge the huge contribution made by him and Gordon in turning Britain into a near basket-case. Modest to a fault.
So, to plough on, oblivious to reality, chanting his spend-now-stimulate-the-economy-borrow-borrow-borrow-only-government-can-spend-wisely mantra denotes a certain acceptance that he and what’s left of Labour will not be visiting Downing St in the foreseeable future.
Just like the Lib Dems…oh…hang on…
……at what point does Labour realise it’s now in third place?