“All of this means that the deficits are structural. And that the debt accumulation was not only visible well before the crisis (which of course means that SGP supervision has failed) but was also caused by the expenditure side of the Government balance sheets.”

This is what upset the applecart in the first place. Governments, (not just ours) besotted by Keynesian power, began to spend money that they didn’t have on a majestic scale. The banks obliged them and boosted their loans to all and sundry on the basis of the government’s interest payments boosted by whatever multiple was thought acceptable.
FF snuck back in the last election before it all fell apart. Labour in the UK spent every last penny but still didn’t manage to fool the electorate. Hence the scornful note left at the Treasury — “there is no money left”.


Keynes advocated saving during the harvest years to cope with the famine years. This wasn’t done in the UK, Ireland or almost anywhere (other than China!). So, I don’t accept that Brown was a Keynesian. He was enthralled with Alan Greenspan. He thought the City of London had become a perpetual motion machine creating endless wealth which he could divvy up and share out on a ‘fair’ basis. But the risk models undrlying Greenspanism were frankly cranky, as described by Taleb. Taleb says the crisis wasn’t a black swan event because anyone who wasn’t ideologically motivated could have seen the faults in the risk models underlying the boom. Ahern and Cowen seem to have also worshipped at the same altar of Greenspan, hence Ireland’s predicament


Gordon Brown know’s the ‘city of london’ paper business is not wealth creation. They and he know it is a codology for stealing the value of labour from workers around the world.

Link the robbing of value of labour with the idea of a war between speculation and savers underway. See this link

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