March 31, 2015
Stagecoach to Lordsburgh and the last chance saloon – which was posted here in September 2012 is relevant.
Quantitative Easing has mutated since in was devised and named by Professor Richard Werner when he was in Japan in the 1990s. Intended for use by private financial institutions and to resolve the difficulty of liquidity, it was adopted by the Japanese Government as an endorsement of their policies to deal with a stagnating economy. It has been a failure and they are now in the third decade of trying to stimulate a recovery. In January the Bank of Japan [BoJ] slashed its inflation outlook as plunging oil prices dented efforts to stay years of deflation. For a country that needs to import oil, and reduce nuclear generated electricity production, low oil prices should be good news. Only in a distorted and dysfunctional market economy could this bonus be perceived as damaging. Despite this the policymakers boosted their growth forecasts and said the Japanese economy was rebounding. Read the rest of this entry »
March 18, 2015
In last month’s post [Lost Horizon] I declared that Nick Clegg was clueless, when he held a press conference in the Shangri-La hotel at the Shard sky-scraper in London, to claim credit for putting the economy “back on track” and he stated that “there was light at the end of the tunnel”. This is not true and his figures do not add up, He is in government and should know how bad a mess we are in. He is either delusional or in denial.
But still he persists. On 12th March the Daily Mail published an exclusive interview with him, when he outlined his flagship pledge of tax cuts for low and middle earners as a pre-election bonus after the lean years. He said the LibDems would “balance the books fairly” and “crucially once you have balanced the budget there’s got to be light at the end of the tunnel”. He is in denial for a second time. He is also misleading voters when he talks about eliminating the budget deficit because he is only talking about current spending and not the whole budget deficit. He still wants to spend and borrow, which will continue to increase the national debt. He said, “I don’t understand why the Conservatives don’t understand that the country has to feel there’s a reward for all these lean years” and “One of those rewards is starting spending properly on public services, and spending properly on our infrastructure, roads, rails, housing and so on”. Read the rest of this entry »