I’ve no idea why parts of the FT conglomerate persist in this illogical assumption that anyone or anything has been cut off at the knees or anywhere else.I’m aware of the fact that EU buying-power is about to disappear: what would you have Osborne do, say “Oh dear, I better hold off?” Among the lenders, stock markets and currency dealers, that tars us with the eurozone brush. It’s not an option, so please do yourselves a favour and stop writing about it.
We won’t move ahead in the 21st century by gaping at ideas written down when there were no global banks, no hedge funds, no EU, no speed-of-light dark-pool deals, no gigantic public sector, huge gold reserves, no sovereign lenders, and no massive overdependence in the UK on service exports.
This means we need two things: to be trusted by the vultures, and to have things to sell that people abroad want at the right price.
Until the cost of raw materials stops going up, we need a stronger £. And until the trade-gap is back in the black, we need to spend less on everything that doesn’t reduce the import bill.
The media act as if there was a choice; but a choice between loss of lender trust (leading to bankruptcy) and deep pain now isn’t a choice: if you don’t do the latter, the former will happen – and then it’s curtains for all of us.
Can we please stop talking about ‘longer-term debt’ than other countries and ‘damage to the recovery’. The recovery was a scam performed by juggling public-sector output alongside private sector disaster; and as long as that continued, long-term debt would very quickly have required short-term debt just to FINANCE the long-term debt.
I don’t like the vultures either – I think they’re dysfunctional. But they run the world of financing capitalism. Ergo, the only way to truly recover is for lots of people to lose the unproductive jobs they have, and focus instead on UK self-sufficiency alongside an export drive to diversify out of fluffy services.
Thatcher was wrong and Brown was wrong. Get real, and get behind it.