What's holding the British economy back? Debt, debt, and more debt

Maxed out

Last week the coalition government was hit with a combination punch of bad economic news. On the same day unemployment was upand the Bank of England’s growth forecasts were down.

Labour were quick to point the finger. Shadow Chancellor Ed Balls said “The British economic recovery was choked off well before the instability in the last few months in the eurozone...The government is cutting too far and too fast and it’s pushing borrowing and unemployment up at the same time”

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From Miliband and Balls to Osborne: riding our luck in the bond market

Only the second most dangerous type of Bond there is

String theory posits the possibility of multiple universes exiting at the same time and in the same space. Economically we saw a little of that last week.

In London a few thousand students and professional protestors marched against the government’s plans to make them pay more towards their education.

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The European Union would have Pericles turning in his grave

Lo, all their pomp and circumstance...

“We have a form of government not fetched by imitation from the laws of our neighbouring states - nay, we are rather a pattern to others, than they to us - which, because in the administration it hath respect not to a few but to the multitude, is called a democracy”

Pericles spoke those words in 430 BC, at the end of the first year of the Peloponnesian War. In his famous funeral oration he commemorated the men of Athens who had died defending their democracy from the military dictatorship of Sparta, and reaffirmed what they had died for.

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EU referendum and the political class

"This guy cracks me up"

Poor old Gerald Ford was derided for, apparently, being unable to walk and chew gum at the same time. But today’s front rank (sic) British politicians are open about their inability to do two things at once.

As momentum grew in the Conservative parliamentary party for a referendum on membership of the ailing European Union, David Cameron and Ed Miliband both said that to hold one would be a “distraction” from the more pressing business of saving the euro.

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No more Solyndras: time for the sun to go down on public spending

$535 million
Whenever I watch Dragon’s Den (Shark Tank to readers in the United States) and I see some entrepreneur waking away with £50,000 in his pocket I try and come up with my own ‘Dragon’s Den idea’.

I wonder how far I’d get if I turned up and said “I want $535 billion and I’ll go bust in two years”? I might not get too far with Duncan Bannatyne, but if I was pitching to Steven Chu, Barack Obama’s Energy Secretary, I might be in with a shot.

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The Tea Party and the Occupy Movement: two sides of the same coin but only the former really gets it

That is, like, soooooooo Tea Party

My mother always used to tell me that what was sauce for the goose was sauce for the gander. Apparently not. Many of the same people who get swivel eyed about Tea Party rallies are running out of laudatory epithets for the various ‘Occupy’ protests.

Back in January it only took a pair of crosshairs on a web page for New York Times columnist Paul Krugman to deduce that the Tea Party were behind the horrific shooting of Gabrielle Giffords.

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Quantitative easing: why it doesn't work

Laying the foundations for recovery

In the second year of my economics degree we were mixed in with some first years for some lectures. In the first week one of the freshers asked “Why don’t we just print more money, give it to people, and make them richer?”

We second years laughed, but that economic ingénue might be having the last laugh. As the Bank of England prepares to print another £75 billion of new money, she seems to have a seat on the Monetary Policy Committee.

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Ed Balls and Irish austerity: what you didn't hear at party conference

May the growth rise to meet you

Ed Balls used to cite Ireland as exhibit A in his argument that ‘austerity’ would cripple the British economy.

A year ago, when Ireland’s economy had just shrunk by 1.2% Balls, then making his unsuccessful run for Labour leader, said

“These figures are a stark warning to governments across Europe including our own. An austerity programme of deep cuts now, when our economic recovery is not secure, risks lower growth and higher unemployment”

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Religious Keynesianism and Obama's blind faith

Peas in a pod

In the film ‘2010’ Milson tells the astronaut Heywood Floyd “Whenever a President is going to get us into serious trouble they always use Lincoln”.

During his much trailed speech on jobs in front of a joint session of Congress last week President Obama took no chances throwing in Kennedy along with Abe. But given the content of the speech he might have been better invoking Nixon; if two wrongs don’t make a right, try a third.

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