Austerity

Kennyboy66

PIMCO (the worlds largest Bond buyer) adds it voice to doubts about cutting investment spending.

"The UK and almost all of Europe have erred in terms of believing that austerity, fiscal austerity in the short term, is the way to produce real growth. It is not.
You’ve got to spend money."

Bill Gross (CEO)

Still, George Osborne knows best.

The_White_Horse

i think in the ideal world, when times are good, the Govt should be saving and when times are bad, it should spend. the problem is, the last idiotic bunch of lefties spent spent spent in the good times and now, in the bad times, there is nothing left to spend.

the debts can't keep increasing and the pain has to come. the major brunt of the pain should be bourne by the public sector and benefit brigade on whom most (if not all) of the money was wasted in the first place.

grizzly1911

The_White_Horse wrote: »

i think in the ideal world, when times are good, the Govt should be saving and when times are bad, it should spend. the problem is, the last idiotic bunch of lefties spent spent spent in the good times and now, in the bad times, there is nothing left to spend.

the debts can't keep increasing and the pain has to come. the major brunt of the pain should be bourne by the public sector and benefit brigade on whom most (if not all) of the money was wasted in the first place.

Not sure any government in the last 30+ years has started a sovereign wealth fund ready for the rainy day they have all been too busy fighting debt.

Regardless of where the money went it eventually exited the country or into the hands of a few.

CLAPTON

Kennyboy66 wrote: »

PIMCO (the worlds largest Bond buyer) adds it voice to doubts about cutting investment spending.

"The UK and almost all of Europe have erred in terms of believing that austerity, fiscal austerity in the short term, is the way to produce real growth. It is not.
You’ve got to spend money."

Bill Gross (CEO)

Still, George Osborne knows best.

presumably he is a completely disinterested person with no specific financial interest in the matter?

Kennyboy66

CLAPTON wrote: »

presumably he is a completely disinterested person with no specific financial interest in the matter?

Clearly not, but he (and PIMCO) are normally cited on this board as "bond vigilantes" and failure to follow austerity will mean higher borrowing costs / currency collapse / Zimbabwe style inflation.

When even the bond vigilantes are questioning austerity, perhaps it time to dust off plan B

CLAPTON

Kennyboy66 wrote: »

Clearly not, but he (and PIMCO) are normally cited on this board as "bond vigilantes" and failure to follow austerity will mean higher borrowing costs / currency collapse / Zimbabwe style inflation.

When even the bond vigilantes are questioning austerity, perhaps it time to dust off plan B

may be maybe not

it's possible he sees more profit in a change of course; without knowing his full reasoning I reserve judgement

Devon_Sailor

Kennyboy66 wrote: »

PIMCO (the worlds largest Bond buyer) adds it voice to doubts about cutting investment spending.

"The UK and almost all of Europe have erred in terms of believing that austerity, fiscal austerity in the short term, is the way to produce real growth. It is not.
You’ve got to spend money."

Bill Gross (CEO)

Still, George Osborne knows best.

I would have thought that someone in such an obviously high powered financial position would have been able to look at the basic maths and see that whatever has been happening since 2010, it has NOT been austerity! Govt spending UP, govt borrowing UP.

Dont believe the media and Union hype......

Regards

D_S

lemonjelly

Asked whether he would accept the advice of the report that will be published by the IMF after a team visits the UK next month, Osborne said: "It depends whether I agree with the advice."

So, on one hand you have the opinion of the IMF. On the other you have the opinion of Gideon Osborne, whose CV reads:

After graduating in 1992, Osborne did a few part-time jobs including as a data entry clerk, typing the details of recently deceased into a NHS computer database. He also briefly worked for a week at Selfridges, mainly re-folding towels.

ILW

Agreed

What austerity?

Devon_Sailor

lemonjelly wrote: »

So, on one hand you have the opinion of the IMF. On the other you have the opinion of Gideon Osborne, whose CV reads:

Christine Lagarde is/was a corporate antitrust/labour lawyer.....

Yes, she was a Trade Minister, and then a Finance Minister, but she has exactly the same amount of economics qualifications as our own Chancellor.

Qualifications dont really count for anything in the higher echelons of Government - performance does. Look at the Global Crisis - how many "professional and qualified" economists saw it coming? Even after it struck, find 100 economists and they all had different views both on cause, effect and cure.

Regards,

DS

The_White_Horse

Osbourne went to Oxford. Rich parents or not, you have to meet the required academic standard to get in.