German ridicule for UK policies

napoleon

In a few years' time when the country's bankrupt and forced to go cap in hand to the IMF we'll be wishing we listened to the Germans. Gordon Brown, what happened to prudence you muppet

purch

It is difficult to see where the VAT cut fits in, in terms of helping the economy, given the little impact it will have on essentials (i.e. doesn't apply to food, clothes, utilities etc etc).

I think it was supposed to be some kind of symbolic gesture to inspire confidence, which would make a lot more sense.....if the government hadn't preceded it by banging on about a 'fiscal stimulus' which this most certainly is not

Yet again proving how totally out of touch with reality our Politicians are....

On the VAT cut, it is hard not to agree 100% the German bloke.

Generali

econo wrote: »

Purch, it may appear commendable that the US/UK governments are 'doing something' but all their doing is making it a far bigger disaster down the road. Having 'a pop' is because the Germans can see where this is heading and being so closely tied in the EU haven't the independence they'd like to be able to do enough.

Our chancellor and the US fed's notion that you can spend your way out of the problem is nothing short of total recklessness and madness, and don't be fooled into thinking that this is for anything other than votes.

Germany has much more of a 'real economy' built on exports and production, not a 'fake economy' like ours and the US's built on consumption.

I completely agree that trying to spend our way out of this is ridiculous. The whole problem started because people borrowed too much money. The solution isn't going to lie in borrowing more cash any more than a long term solution to the DTs is going to be another gin!

The problem Germany has is that their economy is built on consumption as much as ours is. Who do you think buys all those Beemers and the lovely pills that Bayer sell? (Of course it's not actually that simple as the Germans do a fair bit of consuming themselves and also the biggest staple of German exporting is machine tools).

econo_2

purch wrote: »

It's ok I won't be fooled, even though I might take a slightly less cynical view

I also won't be fooled into thinking that everything is rosy in Euroland. The Fiscal problems in Germany and throughout Europe will ultimatey dwarf those of the U.K. and those who put their faith in the Euro might regret being so hasty.

Sorry Purch am I sounding cynical? What I meant to say was the economists at the treasury are giving our chancellor (poor chap) very unsound advice and guidance into how to resolve our problems in these challenging times!

setmefree2

http://www.bloomberg.com/apps/news?pid=20601087&sid=axdIqjrODZ6E&refer=home

Sarkozy Ends EU Term as He Began, in Rift With Merkel

Will it get nasty?

RobertoMoir

nickmason wrote: »

Surely not - I thought Gordo was saving the world from this crisis, like a superhero?
I thought the whole of the world was listening to his way of solving it?

Of course the whole world listens to Gordon Brown. We all like good comedy when we see it, right?

neverdespairgirl

econo wrote: »

Sorry Purch am I sounding cynical? What I meant to say was the economists at the treasury are giving our chancellor (poor chap) very unsound advice and guidance into how to resolve our problems in these challenging times!

Utterly inadequate reply - get on message. You didn't use either "global problems" or "hard-working families" in your post.....

WTF?_2

econo wrote: »

This is not the first time he has been critical of the UK/US model and warned of mounting problems sometime ago, apparently to be dismissed by the UK and US governments.

I'd imagine that he feels Germany has been caught up, mainly in the turmoil and worsening situation due to them being unable to break free from the interrelated relationship of the 'world economy' and the fact they have had very little input into the financial model adopted over the last 2 decades or so that is now falling around our ears.

I think I'd be just as frustrated as he is.

Yeah, the German government and public didn't partake in the credit spree but unfortunately for them, their greedy bankers certainly did.

Now they are being dragged down with everyone else. They're kind of like responsible savers who now see their savings being decimated to bail out the irresponsible borrowers who have been living it up on credit.

No wonder they're hacked off.

Really2

The good news is they put their towel on the EU bailout fund.

tomstickland

http://business.timesonline.co.uk/tol/business/economics/article5322938.eceGermany has lambasted Gordon Brown’s response to the economic crisis as “crass” and “depressing” in an astonishing attack as EU leaders prepare to debate how to recover from the recession in Brussels today.