... that "If you owe the bank ten thousand it's your problem, but if you owe it a million it's the bank's problem."
I think it's time to update this and add on "... if you owe it a billion it's the government's problem and if you owe it a trillion it's the taxpayers' problem."
Meh
25 minutes ago
8 comments:
In a just world it would be the problem of the fuckwits who in 97.01 05 voted for ZaNuLabour.
Stripping out the illusionary growth of the last few years, what would Tones and Gords actually GDP growth figures be?
Also they cannot claim 97, to 2000 as they followed the last govts spending figures.
And the difference between the government and the taxpayer is ... ?
Government cash=taxpayers surely Mark?
PB, strip out the addded £700 billion or so that's purely down to credit growth, divide by ten = £70 billion per annum, which is broadly speaking equal to compound growth of 5% or so since 1997. In other words actual GDP growth plus/minus nothing.
VFTS, Gregg, fair point, but at a billion, the government can probably sort this out without taxpayers' cash, like the secondary banking crisis of the early 1970s or the Barings collapse.
Ta Mark.
So mark Am I right in saying we are looking at around a 20% blowout in our gdp? before the great price correction is over.
We have had roughly 3% (illusionary) growth over 10 years, minus the credit growth of 5% over 10.
PB, yes you are right.
I did the numbers last March, as it happens.
@ passerby: roughly ,yes. But don't forget that debt has been growing steadily for 30 years, it only went stratospheric in the last 7-8 years. So there's a lot more ilusionary growth out there than just the recent stuff. My basic premise for this crisis is that we will end up back at late 80s living standards. By a process of a) quick falls in asset prices, coupled with many years of low growth and higher inflation eroding real incomes.
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