Re: Britain: an economic train wreck
 

Evans-Pritchard is one of the best commentators around.

Some quotes that support what I've been saying about the relevance of private debt:

"Five years on it is clear that subprime was merely the first bubble to pop, a symptom not a cause."

"debt turns “bad” at roughly 85pc of GDP for public debt, 85pc for household debt, and 90pc corporate debt. If all three break the limit together, the system loses its shock absorbers." - that adds up to 260%, Britain's is double that.

"Creditors and debtors may in theory offset each other, but what actually happens in a crunch is that borrowers cut back feverishly. Creditors do not offset the effect. The whole system spins downwards."

Re: Britain: an economic train wreck
 

All the more reason you are just so lucky to live in Australia. If I were you I wouldnt be worrying about just how bad everything is in the UK, just enjoy your life in the lucky country. :thumbsup:

Re: Britain: an economic train wreck
 

You can also argue that the underlying problem is there is too much credit in the world. Credit is the flip side of debt. There is nowhere for this money to go. The funds flood into investment - now a world record 49pc of GDP in China according to Evans-Pritchard - or into asset bubbles. All this quantitative easing is just making the global glut of credit worse.

Interestingly, Evans Pritchard pins the real blame for this on income disparity and excessive profits in a global economy where Chinese workers are underpaid and Americans are overpaid, leading to massive trade imbalances fuelled by debt and credit. Income disparity within countries has also been rising steadily over the last couple of decades where the wealthy save too much and the poor take on more and more debt.

The world economy is in the mother of all debt traps.

Re: Britain: an economic train wreck
 

We eat, we drink, we go out, we buy stuff, our kids have fun, we have fun. I think sometimes people just over analyse things. KISS. :D

Re: Britain: an economic train wreck
 

Chris, I love your happy go lucky optimism but, gee, thank God you ain't in charge of running the economy. ;)

Re: Britain: an economic train wreck
 

There is something beautifully redolent of 1929 about your posts.

Re: Britain: an economic train wreck
 

of course chris has all the money to enjoy after cashing in his valuable AUDs.

Re: Britain: an economic train wreck
 

And with the pound in the toilet for the next decade that's a magic trick that can only be performed once!

Re: Britain: an economic train wreck
 

http://www.investmentinsider.eu/wp-c...ervyn_king.jpg


http://24.media.tumblr.com/tumblr_lk...jgbro1_500.jpg

But look at the muppets that are:rofl:

Re: Britain: an economic train wreck
 

Osborne has aged so much since the election, bloody hell! Or is that an old photo Lol.

Re: Britain: an economic train wreck
 

Here is a question for you BE economists.

During the 1997 to 2007 UK "boom" years,how much of the growth in GDP was funded by private and government debt?

Re: Britain: an economic train wreck
 

78.6576%

Re: Britain: an economic train wreck
 

Ah, Evans-Pritchard. The Telegraph is my favourite newspaper and I used to like AEP, but now I think he is a tool. His hatred of the EU clouds his judgement. He waffles on like the English public school twit that he is.

I see the world muddling along as it always has. Not always getting it right, making mistakes, but managing. To assholes like AEP, we're all doooomed and there is no solution.

Re: Britain: an economic train wreck
 

:eek:

Re: Britain: an economic train wreck
 

I feel the same way about AEP and have done for a while. He sees the EU through such a distorted lens that his analysis goes off the grid sometimes. Also he has been criticized for taking ideas off blogs but I don't know how true that is at all.