June 25th, 2011

Ed Balls Take Note, Obama’s Keynesian Stimulus Has Failed

It seems a long time ago that Will Straw, the former Treasury spin doctor under Gordon Brown now turned blogger and think-tanker, was arguing about the need for the Balls/Brown tax, borrow and spend stimulus plan. The voters and the 2010 general election put paid to that and George Osborne has resisted the calls of Balls (and Will) for more government borrowing to spend on boosting short-term growth. Will Straw argued, citing research by a “progressive” American economist, that spending increases were the most efficient form of deficit spending. The theory can now be tested against the outcome.

Obama did implement a massive $787 billion stimulus programme financed by more borrowing of the kind that Will Straw and Ed Balls still advocate. The chart above shows the results versus the predictions. Unemployment is far higher than the supporters of the “porkulus” projected, higher even than they projected it would be without wasting three-quarters of a trillion dollars. Not since the 1930s has US unemployment been so high for so long. Told you so.


259 Comments

  1. 1
    Billy Bowden is the greatest umpire ever ! says:

    They dont care , its not thier money.

    Like

    • 7
      David Laws Lib Dem fiddler says:

      Will Straw is still possibly feeling the effects of the drugs he took. His Dad helped him get off with a caution and no doubt his dad’s job helped him get in at Oxford. It does not, however, detract from the fact he does not have a clue what he is talking about. His lack of emotional intelligence can possibly be attributed to his father. As we have seen by Jack’s actions concerning the release of the Libyan bomber, Iraq war and vindictive decision not to promote a family division judge because he dared to criticise government policy. Both lack the personal qualities to hold public office.

      Guido, you need to add that Obama’s mate Clinton deregulated banks, in return for sponsorship for his presidential campaign, that created this situation we are now in. Blair and Brown followed Clinton in deregulating banks. All we got was an insincere apology from Balls a few weeks ago. Socialist politicians and bankers created this mess and the ordinary hard working public are expected to suffer hardships to pay for their greed, vanity and power.

      Like

      • 13
        Ed Balls says:

        So what?

        Like

        • 68
          Ed Balls ordered to pay his debts by a Court of Law says:

          So what !

          Like

          • David Laws Lib Dem fiddler says:

            The Lie Con government now want to threaten to use new legislation to stop the public from expressing their anger about their pensions through strikes.

            This is not a private versus public pension debate- as the government would wish to prevent anger against them and the bankers- it is about making politicians and bankers pay for the damaged economy that they caused not ordinary people. Government wants us to stop bashing bankers- why? They caused the mess which the politicians allowed in return for sponsorship, future jobs etc.

            I am normally against unions, strikes and other socialist shite. On this occasion it is absolutely right. The politicians and bankers should have consequences for their recklessness not ordinary people.

            Bully boy tactics by the Lie Con should be resisted by all sections of the public- this mess is not our fault. it rests squarely with corrupt greedy politicians. Blair and the man from Kirkaldy should be first in line to be stripped of their assets.

            Like

        • 90
          Ed Balls says:

          I am right. The Graphs are wrong. Too steep too slow

          Like

          • Grumpy Old Man says:

            Now Guido, you know perfectly well that the the problem is NOT ENOUGH STIMULUS! All the great economists like Richard Murphy and Edward Balls say this and who are we mere mortals to argue with such mighty intellects as these?

            Like

          • only me says:

            What the stupid graph cannot show is Actual WITHOUT Stimulus.

            Would have been even worse without.

            Probably would have had troops on the street.

            Like

          • Sicko says:

            Keynesian economics is an expensive mistake, its main usefulness being to governments who see their supposed importance flattered at ruinous cost to the governed.

            Like

          • Reply to Sicko:

            Well, actually we do have those number here in the UK and unemployment is quite low really and falling. It’s certainly not as high as previous UK recessions and not in the same league as the 1930s depression America (as a percentage obviously as they have a larger population).

            The stimulus spending was a huge gamble which didn’t pay off. As a result we have the biggest peace time debt ever, a huge deficit making our debt worse every year, and thousands of new public sector worked taken on during the planned unsustainable government spending bubble, will inevitably have to be laid off again. Plus taxes will probably have to go up for decades to pay down the debt, or the only alternative will be to pass the debt on to our children and they will have to pay higher taxes.

            The only way stimulus can pay off, is if the economy grows 5 times faster than the rate at which money is being spent, and non-capital projects will always cause the economy to grow at a smaller rate than the money that is spent (as not all of it is recycled back into the economy after the state has spent it).

            Investing in national 100Mb broadband like France and the far east, and updating copyright and liable laws to allow web sites like Google, news aggregators, and social comment sites like Twitter to be developed in the UK would have allowed us to compete in the ever growing Internet might have delivered that kind of return but the money was just given to banks, public sector workers, and big companies, who just transferred some of it out of the country, and did nothing to grow the UK economy by more than they received.

            The ‘stimulus’ as was, was flawed, and could never succeed. Simple economics really.

            Like

        • 150
          the old Dufflebag says:

          the ‘so what’ is that you are an arrogant double talking two faced lying scumbag that most of the british public would relish to see fall from the remarkably high perch you have placed yourself upon.

          Like

      • 19
        they are all bastards says:

        + 1

        Like

      • 59
        They're all the same says:

        Labour socialist? A joke surely.

        Statists (both ‘left’ and right) and holders of capital caused this crisis.

        Like

    • 54
      Liar Byrne, aka Baldemort says:

      There’s no money left.

      Like

      • 92
        Ed Balls says:

        Why liar? He told the truth. There was no money left. So what

        Like

        • 251
          "Danny" Blanchflower economist extraordinaire says:

          Quite so Ed, we must let inflation rip. It will diminish the deficit and debts. Sod the savers.

          Like

    • 86
      In America We Trust? In Fawkes We Believe? says:

      Rather than magnifying what has happened in the last five minutes and coming up with spurious conclusion, if you overlay a graph of the earnings of bankers since Reagan’s deregulation of the banks, and overlay the number of poor people in America and overlay the cost of the wars and occupations America has been involved in over the last twenty years then you would have a more thorough explanation as to the why the American economy has gone tits up.

      But that wouldn’t suit your selective methods of research, I suppose.

      Like

      • 88
        Billy Bowden is the greatest umpire ever ! says:

        What was Amercias debt and deficit when Bush left office and what is it now under Obama?

        Like

        • 113
          Anonymous says:

          Debts and deficits are two different things. America owes the world several apologies for electing those two clowns, but that won’t show up on a balance sheet anywhere

          Like

          • sham says:

            “Debts and deficits are two different things” – that would be why they were both mentioned then

            Like

          • Osama the Nazarene says:

            A budget deficit each year keeps adding to the National debt each year.

            Ditherer Brown kept increasing the National Debt from 2002, once he fell out of love with Prudence. In 2008 he went on a massive bender to save his mates the bankers.

            Like

      • 104
        Wild Willie says:

        Somebody is getting overlaid.

        You must be getting my share, ‘cos I’m getting precious little these days.

        Like

      • 158
        Robert Baird says:

        We also have the last 60 years of experience in the US, UK and Japan of Keynesian economic policies to inform us that the man was an unmitigated quack and total charlaten. Everything he ever wrote was bunkum from start to finish but socialist politicos and central bankers love him because he tells them what they want to hear, namely central planning and the fairy tale of spending forever. Come back Von Mises, all is forgiven………………..

        Like

    • 89
      Anonymous says:

      Information provided by Karl Rove.

      Isn’t he a sort of Will or Ed, only a Republican variety of a more virulent strain who worked for George Bush, need more be said.

      Well, yes. Fawkes was bag-carrier for that bat-headed British equivalent of Rove called David Hart who had a penchant for impressionable young men, I understand.

      Like

    • 210
      A Latter-Day Keynesian says:

      This is F—ing heresy… Somebody needs to send Guido to Hell early… preferably in flames….

      Like

    • 227
      ST says:

      And what is more the US economy being much bigger would see more of the “stimulus” stay in the US. Here it would leak out into foreign markets as it was spent by the recipients.

      Like

  2. 2
    Blinky says:

    I am a tewwific shadow chancellow! Wespect me!

    Like

    • 6
      Peter Grimes says:

      You are a total fuckwit, Bollox, and we can see even more just why you and your thugs tried to knock Little Georgie Osborne – he is just about the only Tory left with a semblance of a backbone, even though we are still borrowing on a massive scale.

      Like

    • 253
      Edward speaks Balls says:

      Should I agree with the lovely Mrs Merkel and make the Greeks cut even deeper and faster? Heads or tails?

      Like

  3. 3
    MrAngry61 says:

    And the word is that Barry sees no option other than QE3.

    If that happens on a large scale, the lefty parasites will find new voice for deficit spending here too.

    Like

    • 41
      Bled White Taxpayer says:

      Representative Ron Paul has tabled a balanced budget bill to be voted on in about three weeks (ie no deficit spending allowed). That really would screw Obama.

      All the QE spending is really doing is keeping the stock market pumped to unsustainable levels. It’s not going into the real economy (which explains Guido’s graph above). Once it stops, watch the Dow Jones plummet.

      http://www.zerohedge.com is informative and well written on the lunacies of western economies, even if some of the commenters there make us here seem sane.

      Like

      • 219
        All going nicely, where's my bonus? says:

        It’s also going into commodities and turning up as the inflation that QE was designed to boost….remember inflation is the debtor’s friend.

        Like

    • 71
      Eds latest speech says:

      Lol Ed Millwit has obviously been told to make big emphatic hand and arm gestures during his speeches. It just comes across as contrived. He really is rubbish.

      Like

      • 170
        Magnus Pyke says:

        Is he being coached by the same people that get BBC newsreaders to do all that rubbish?

        Like

    • 93
      English Viking says:

      Poor old QE2 is some opium den in Dubai now.

      O, how the mighty have fallen.

      Like

    • 97
      Ah! Monika says:

      Why QE3. I suggest a new Royal Yatch.

      Like

  4. 4
    Gordon Brown says:

    My plop started in America.

    Like

  5. 5
    Billy Bowden is the greatest umpire ever ! says:

    ” Will Straw, the former speech writer and spin doctor for Gordon Brown ”

    I didnt know straw was Browns spinner?

    If we look at the effect of our stimulas (Vat cut) the cost v the result was nothing but vote buying, I admit most goverments do it, But not after they have maxed out all the credit cards.

    Maggie and Winston were right.

    “The problem with socailisim is that you eventully run out of other peoples money”

    O/T Guido , how long will it take for me to recive my free Ai Weiwei ?

    Like

    • 22
      joss askin says:

      What is so special about the leftie’s current bestest favourite artist anyway?

      Like

      • 26
        retardEd Miliband says:

        Tricky one. We love effnic artithtth, but thith particular effnic artitht hath critithithed a Communitht Party. We love communitht partieth even more than we love effnic artithtth.

        Yeth, thitth ith very tricky. Betht we thay nothing about it.

        Like

    • 155
      Anonymous says:

      Straw jnr was Brown’s spinner-and people still take him seriously?
      Why isn’t he treated with the disdain he deserves?

      Like

  6. 8
    Eddie Miliband says:

    I am change you can believe in! Vote Labour! We gave you child taxth creditth!

    Like

    • 17
      Oppressed worker says:

      You gave us the 100% tax rise.

      Like

      • 20
        Bliar says:

        Why don’t you serfs just do as Cherie and me, only took a crack team of accountants a few hours to devise various companies and partnership arrangements for me to funnel my money through.

        It’s so simple that even Gordon has set up some kind of company with his dopey wife to put in his pathetically small lecture fees. When we worked together he couldn’t even add up properly yet he’s found ways to scam it.

        What is wrong with you peasants?

        Like

      • 109
        English Viking says:

        Labour gave us a zero percent increase in growth.

        Rejoice citizens, your chocolate ration has increased from 15 grams to 10.

        All hail the socialists.

        Like

        • 136
          George Osborne Graduate of the University of Third World Economics says:

          And don’t forget I borrowed more money in April than Gordon Brown did in the same month of last year, and don’t forget that government borrowing is up this year compared to last year under Labour…. hold on a minute, that means I’m full of shit and my policies are fucking useless, doesn’t it?

          Bollocks.

          Like

  7. 9
    Gordon Brown says:

    Tonight I will be a courgette.

    Like

  8. 10
    Billy Bowden is the greatest umpire ever ! says:

    Found some sweetcorn under my foreskin today. Must have been there since last weekend’s fuckfest down with the boys. Pretty sure there’s some damage round back as well.

    Like

  9. 11
    leejun says:

    Keynesians: getting it wrong since 1936

    Like

  10. 12
    Derek Draper says:

    Debt is not a problem.

    Like

  11. 14
    Raving Loon says:

    Where does government spending come from if not the general government? Can the government really spend money more efficiently than the private sector? Of course not. If it were the case N.Korea would be an economic powerhouse. Governments can create growth or jobs because they don’t create or make anything. People need to stop looking to government to solve their problems.

    Like

    • 18
      Mad Hattie Harman's curiously cavernous front bottom says:

      You need the Labour Party to run your worthless little lives because you’re all too stupid to do it yourselves.

      Like

      • 60
        Raving Loon says:

        I do have one friend who is in the labour party, and this is actually what they believe. I always suspected it, but it’s true. It’s sad really, but goes to show that democracy and liberty are not the same.

        Like

        • 153
          scratch and whiff says:

          when you can easily still find voters who will say they would vote labour…’because my parents would turn in their graves if I didn’t’…
          it says it all.

          Like

        • 164
          English Viking says:

          You need to pick your friends more carefully.

          Like

      • 96
        Peter Grimes says:

        Well for about 42% of this country that is palpably true – unfortunately!

        Like

    • 118
      Anonymous says:

      Govt. are the problem~ not the solution to to them.

      Like

    • 259

      I just wish they’d stop creating them.

      That’s why I’ve concluded that what you need is as little government as possible.

      Like

  12. 15
    Bono's Accountant says:

    Bumpy charts are all very well, but what I want to know is – is the hiring of thugs to silence your critics tax deductible?

    Like

    • 23
      Bob Geldof says:

      Gimmee yorr fuckin money!

      Like

      • 30
        Live Aid only fed Bob's colossal ego says:

        Excuse me, Sir Bob – you asked for our money in 1985, to save all the starving in Ethiopia. We gave it all to you, Sir Bob, every penny you asked for.

        Why are they still starving, 26 years later, Sir Bob? Was all that money wasted? Please say it ain’t so.

        Like

        • 37
          Bono says:

          [clapping hands every second]
          Every time I clap my hands a child in Africa dies.

          Like

          • Munky says:

            Then stop it you evil bastard!

            Like

          • Joss Ayinglike says:

            and pay your taxes.

            Like

          • It's not Worthy says:

            You know Glastonbury is officially sh*t when:-
            Security thugs beat up people peacefully protesting against U2’s hypocritical tax status.
            Wayne and Coleen arrive in a hired helicopter promoting Hunter wellies.
            The audience is made up of thousands of BBC staff on a freebie, assorted bank managers and Andrew Marr.

            Like

          • English Viking says:

            Clap more!

            Like

          • sham says:

            Why would an English person give a shit about U2’s tax status anyway? They are Irish and wouldn’t pay tax in the UK anyway FFS.

            Like

          • handypara says:

            Bollocks!
            1. Bono is a f*cking hypocrite.
            2. The less Ireland collects in tax the more we have to support their economy.

            Like

          • the stench of hypocrisy says:

            Bono lecturers the world about poverty while a few of U2’s millions would be very gratefully received in Ireland.

            Like

    • 57
      annette curton says:

      He’s been offshore for the last 20 years.

      Like

  13. 21
    Tony Benn says:

    Socialism will save us.

    Like

    • 73
      Socialists = Sociopaths says:

      We don’t save anything. We spend and waste. Eventually we run out of other people’s money.

      Like

      • 138
        George Osborne Graduate of the University of Third World Economics says:

        I am borrowing more money than Brown.

        Does that make me a sociopath?

        Like

        • 140
          Billy Bowden is the greatest umpire ever ! says:

          It took Brown 11 years to screw the econemy up, will take more than 12 months to turn the ship around.

          Like

          • handypara says:

            Indeed! It takes only a few seconds for Brown to liquid shit all over the house but a helluva lot longer for his carers to clean up the mess.

            Like

      • 242
        Socialism = mega death mass murder says:

        You have forgotten the end game – socialists usually end up rumming out of people when they have run out of their money. Look at the benefits brought to humanity by a few great socialists – Lenin, Mao, Stalin, Pot (and all the other fellow travellers) were all creating socialit utopias – the best of all possible worlds – and filled the mass graves of their enslaved populations faster than they could be dug.

        Like

    • 78
      nmj says:

      From what? Solvency?

      Like

  14. 24
    Billy Bowden is the greatest umpire ever ! says:

    If a kid turns 16 literally while you’re fucking, does it become OK? HOPE SO

    Like

  15. 25
    TweeBalls says:

    Like

    • 27
      Billy Bowden is the greatest umpire ever ! says:

      P45 for Balls.

      Like

      • 76
        East India Company wallah says:

        Twitter does for irrelevent people what beer does for ugly people

        Like

      • 126
        smoggie says:

        Why does it sound so insincere? Greasy bastard will still stab Milliband in the back. Who wants “friends” like this?

        Like

        • 237
          Sicko says:

          OIt stood out that it was the delegates he attributed the qualities of being ‘strong’ and ‘rousing’ to, in presumed contrast to Miliband Minor.

          Like

      • 249
        handypara says:

        Potassium Chloride injection for Balls.

        Like

    • 28
      Voterphobia says:

      No elections eh, does that mean you have got a job for life? What is it with Brownites and their fear of elections?

      Like

      • 82
        East India Company wallah says:

        Translation = no dumb as fuck labour MP even while high on bitter and nicotene would countenance voting for communists like little jaqueline dromey,now the union paymasters will tell stooge who gets appointed so as to take labour as far left as is politically possible-prepare to see the nationalisation of mc donalds in the next election manifesto ,the yoof vote is important to day-dreamers from fairydairy land

        Like

    • 31
      retardEd Miliband says:

      You don’t quite get it, do you Mr Ballth?

      I’m trying to give mythelf the power to get rid of you.

      Like

      • 49
        String emUp says:

        Ed Bollox gets it alright , read the text , strong support , strong applause. Nothing to say he supports it or was applauding. Very neutral piece of praise. Typical , first sight implies something that is the opposite of what is meant. What an utter s**t that man is. Not that I have any time for any of them

        Like

    • 40
      I don't need no doctor says:

      Ed Balls is scum.

      Like

    • 53
      Blinky Cojones the wrecker of True Labour says:

      Titanic Millie-Mossad was as inspiring today as Mr Brezhnev on a good day…

      His sell by date expired while he was still one of Gordoom’s office boys

      And he is yesterday’s man before he even reaches 42 years old…

      Quite a feat…

      Like

  16. 29
    David Cameron says:

    This Guido chap should get a rosette. First we pin the world recession successfully on Gordon, now he’s claiming that a deeper-than-expected recession disproves the existence of stimulus. With followers this dogmatically stupid, how did we ever lose? I’ll tell you how: Major. Can’t expect a pleb like that to stand up against a product of Britain’s fine public schools, even an evil turncoat one like Blair.

    Like

    • 32
      COMRADE BOB CROW (ANNUAL SALARY £254,978) says:

      BRITUNS RESESHUN WOZ CORSED BY FATCHA.

      IF WE HAD A LAYBUR GUVUNMENT THEIR WOOD B NO RESESHUN.

      Like

      • 39
        I don't need no doctor says:

        Bob Crow. The scumbag that robs his own union members.

        Like

        • 62
          COMRADE BOB CROW (ANNUAL SALARY £254,978) says:

          IM NOT ROBIN THEM IM TAYKING THERE MUNEE 2 INVEST IT IN SHAMPAIN.

          THE MOR SHAMPAIN I DRINK THE MOR OF A FYTER I AM. FYTING 4 THE WURKURS.

          Like

  17. 33
    Billy Bowden is the greatest umpire ever ! says:

    Those English Cricketers Eoin morgon and Kevin Pieterson are playing well.

    Like

  18. 36
    Bob Monkhouse says:

    The modern way of courtship and matrimony: go out in the street, find a woman you don’t like and give her your house.

    Like

  19. 38
    I don't need no doctor says:

    Ed Balls would never admit being wrong, besides his head is stuck his socialist arse.
    How do twats like Balls get to be shadow chancellor and be listened to?

    Like

  20. 42
    Anonymous says:

    “Source:Karl Rove”

    Ahahahahaha, ahahahahahaha! Like that fat Hunt ever provided anything reliable.

    Like

  21. 44
    Steve says:

    Deficit stimulus is EXACTLY the same as drug taking.

    It makes things better, but you need more and more of it to maintain the effect.

    And the more you do, the harder and more painful to get off it.

    Government spending should match tax receipts.

    Seemples.

    Like

    • 67
      David Camoron says:

      But then I wouldn’t be able to make you all proud by donating billions of pounds to countries that spend it all on nuclear arsenals.

      Like

    • 72
      Engineer says:

      The goons used to follow that line (pretty much), but they learned that if they wanted to spend more, and consequently whacked up tax-rates, the economy slowed down and they therefore had less to spend.

      Until they goons learn that there’s a limit to what they can spend (in practice about 35% to 40% of GDP at most), and tailor their policies accordingly, we’re going to carry on shouldering an unacceptable burden, and piling up debts for the following generations to cope with.

      Like

    • 116
      Professor Pangloss says:

      Governments should run surpluses. Spending, including payment of debt interest, should be several percent below tax and other receipts from profitable investments.

      Like

      • 218
        Mascarpone, I scream says:

        No government shall bind its successor … for example, with massive fucking debts.

        It’s time this principle was taken seriously.

        The problem for the political parasite class is that with such reasonable limitations on the power of government, they would find it a lot harder to steal taxpayers’ money.

        Like

    • 120
      Clinton's Drycleaner says:

      But if you don’t inhale its OK

      Like

  22. 45
    Chuntters says:

    Give me a tax break of £1000 and I will spend it on plant and machinery

    Give Dek my Labour supporting next door neighbour £1000 more benefits and he will invest it in a foreign holiday and some weed

    Like

    • 70
      A salutary lesson that Labour cannot possibly learn says:

      I think Michael Carroll tested the benefit culture to death when he won £9.7million and blew the whole lot within four years.

      Like

  23. 48
    Bunhead says:

    In order to see the future for Europe, one only has to look at the United Kingdom – different cultures bound together by a legal fiction

    Scotland, Wales and Northern Ireland have been effectively bankrupt for many years

    They are being “bailed out” daily with English taxpayers money

    Like

  24. 50
    ECHR says:

    Free Levi Bellfield now! His human rights have been violated.

    Like

  25. 55
    Blinky Cojones the wrecker of True Labour says:

    Was Will Straw really a speechwriter to the mad Gordon Brown ?

    Is he as bad and mad as Jonah then ?

    Like

  26. 61
    Polly Toynbee says:

    You all want a final solution to Ed Balls! A disgrace! I’m outraged as I lie back on my deckchair at my villa in Tuscany.

    Like

  27. 63
    Ed Miliband says:

    You’ve been hit by, you’ve been thtruck by, a thmooth criminal.

    Like

  28. 66
    Engineer says:

    For the life of me I can’t understand the argument that a good way to address a debt crisis is to rack up more debt. It hasn’t worked in America, it wouldn’t have worked in the UK and it won’t work in Greece. Why is this simple piece of common sense so difficult for supposedly intelligent economists to work out?

    Like

    • 69
      Billy Bowden is the greatest umpire ever ! says:

      They confuse facts with fairy tales (Socailisim/Marxisim)

      Like

    • 74
      Derek Draper says:

      Debt? Debt is not a problem.

      Like

    • 77
      supposedly intelligent economist says:

      Fuck the economy.

      Like

    • 127
      smoggie says:

      Macroeconomics is not like home economics.

      If you’re maxed out on your credit card then what you have to do is stop spending so much at boozer, make economies, sack the maid, woteva.

      But as a nation state different rules apply. If you sack the maid, she won’t vote for you at the next election. Neither will the pub landlord or anyone else who benefits from your largesse.

      It’s not your money so get another credit card, get another loan, keep on spending and it’ll make you popular and if it doesn’t get you voted in next time, ell at least you will have had some fun.

      Like

    • 151
      Raving Loon says:

      One’s attitude to debt depends entirely on who’s paying it. Why would you care about >£1tn in debt if you don’t have to pay it/print money out of thin air. Remember the 1st rule of economics is that people respond to incentives. It applies just much to economists and politicians as it does to everyone else.

      Like

      • 182
        Engineer says:

        Fair comment – but you’d think that at least one or two of them would feel a smidgen of responsibility to the taxpayers.

        Like

        • 217
          Anonymous says:

          If I default on my mortgage the bank does not give me a blank cheque- it repossess my house.
          Greece will never repay it’s debts and Greeks will never implement cuts, reduce the public sector or start paying sensible levels of tax.

          Like

    • 232
      sham says:

      The problem we face in the uk today is that companies cannot borrow money to invest in their businesses, depsite all the QE. The banks are sitting on a vast supply of virtual money and the real economy sees none of it.

      Debt *can* make the economy grow *if* it is targeted at real businesses who can use it to good effect.

      Like

  29. 80
    Ed Balls, Shallow Chancer says:

    Look. Too far, too fast. Too far, too fast, Too far, too fast,Too far, too fast. Too far, too fast. Too far, too fast, Too far, too fast,Too far, too fast. Too far, too fast. Too far, too fast, Too far, too fast,Too far, too fast. Too far, too fast. Too far, too fast, Too far, too fast,Too far, too fast. Too far, too fast. Too far, too fast, Too far, too fast,Too far, too fast. Too far, too fast. Too far, too fast, Too far, too fast,Too far, too fast. Too far, too fast. Too far, too fast, Too far, too fast,Too far, too fast. Too far, too fast. Too far, too fast, Too far, too fast,Too far, too fast. Too far, too fast. Too far, too fast, Too far, too fast,Too far, too fast. Too far, too fast. Too far, too fast, Too far, too fast,Too far, too fast. Too far, too fast. Too far, too fast, Too far, too fast,Too far, too fast. Too far, too fast. Too far, too fast, Too far, too fast,Too far, too fast. Too far, too fast. Too far, too fast, Too far, too fast,Too far, too fast. Too far, too fast. Too far, too fast, Too far, too fast,Too far, too fast. Too far, too fast. Too far, too fast, Too far, too fast,Too far, too fast. Too far, too fast. Too far, too fast, Too far, too fast,Too far, too fast. Too far, too fast. Too far, too fast, Too far, too fast,Too far, too fast. Too far, too fast. Too far, too fast, Too far, too fast,Too far, too fast. Too far, too fast. Too far, too fast, Too far, too fast,Too far, too fast. Too far, too fast. Too far, too fast, Too far, too fast,Too far, too fast. Too far, too fast. Too far, too fast, Too far, too fast,Too far, too fast. Too far, too fast.

    Like

  30. 98
    AnotherSouthAfricanEnglandCricketer says:

    my name is Kieswetter NOT Bedwetter

    Like

    • 101
      AnotherSouthAfricanEnglandCricketer says:

      My name is Jade Dernbach and just like Andy Strauss, KevBoy Pieterson and the rest of the England team I was born in South Africa, coached by South African born Andy Flower

      where is England? Is it Lords??

      Like

  31. 107
    MAD FRANKIE HADDOCK son of COD says:

    How the fuck can Call me Cuts Cameron and Liam Fox show their ugly mugs at Armed forces day up in Jockland ?
    Half of these brave soldiers will end up on the dole thanks to their defence cuts
    They know no shame !
    Cameron will stop at nothing to get his mug on film !

    Like

  32. 108
    Billy Bowden is the greatest umpire ever ! says:

    Get in there Ed !!!! David Cameron is toast !!!!!!

    Ed Miliband’s NPF speech – June 25th | LabourList.org 2.0.2 | LabourList.org http://bit.ly/kA0pPd

    Like

  33. 111
    Billy Bowden the sockpuppet says:

    Which is why I will be voting Labour in future,simply because this conservative led coalition haven’t got a clue about anything.

    Bastards the lot of them,inflation is out of control and so is unemployment and economic growth is flat-lining.

    The UK is fucked in every way

    Like

    • 146
      Anonymous says:

      It’s no good satirising Bowden, his self parody is second to none, plus nobody gives a fuck what he thinks anyway, the brain dead twat.

      Like

    • 174
      You are a cock and I claim my £10 says:

      “Which is why I will be voting Labour in future”

      Good for you.

      Nobody cares.

      Labour will still lose. Again.

      Oh yeth.

      Like

  34. 112
    What cuts? says:

    Obama’s handling of the economy may lead to his downfall. Then another Republican with the IQ and the elegance of a retarded, comatosed chimpanzee will be elected. Does Palin still support her comrades in North Korea?

    Like

  35. 114
    Sludge Pump says:

    Isn’t it about time that the population of the country recognised that the vast majority of our elected parliamentary representatives are a load of inconsequential twats, with half a brain cell between them. We the British people have allowed these twats to run (that should read RUIN) the country!! FFS!!

    Like

  36. 115
    Republican think tanks n guns says:

    America is skint. Lets start another war. Yeeha!

    Like

  37. 117
    MAD FRANKIE HADDOCK son of COD says:

    Call me Clueless Dave
    NO cuts necessary !
    Only This One

    http://www.democracymovementsurrey.co.uk/dyk_eucosts.html

    Like

  38. 119
    grobdj says:

    If anyone needs proof that the debt-pedlars have lost the plot, listen to Ben Bernanke – he reckons they need to raise the US national debt ceiling to avoid losing their triple-A credit rating!

    Like

    • 123
      Bent Bernanke the Slot Machine Economist says:

      Triple A, Triple 7s, Triple jackpots. They all win prizes in my casino.

      Like

  39. 122
    Ed Balls in a parallel universe. says:

    What cuts?

    Like

    • 161
      Nemo says:

      Eddy dear heart, if you had advised Gordy properly he might have not got in to this mess, you were the one with the economics qualifications coming out of your ears, Gordy’s qualifications were in modern history he was relying on good advice to make decisions, you know the old one rubbish in, rubbish out.

      Like

  40. 131
    Jimmy says:

    Order Order: Your #1 source for year old American right wing bogus talking points.

    Like

    • 132

      We’re #1 alright Jimmy and this talking point is fresh up-to-date minted in June 2011.

      Like

      • 133
        Billy Bowden is the greatest umpire ever ! says:

        Wheres my free Ai Weiwei Guido?

        Like

      • 144
        Welcome to Guido's World of Cod Logic! says:

        As I understand it the stimulus was needed because the bankers had fucked the American economy thanks to Reagans’ deregulation of lending in America dn yet you blame President Obama.

        You are something of a simpleton.

        Like

        • 147
          Billy Bowden is the greatest umpire ever ! says:

          The stimulas and bailout were two different things.

          Like

        • 172
          You are a cock and I claim my £10 says:

          It’s all Reagan’s fault? He ceased to be President 22 years ago.

          Clinton – a socialist – took over in 1993, for eight years. If Reagan did anything dumb, really dumb, don’t you think Clinton would have “un-done” it?

          18 years ago?

          Like

        • 179
          Engineer says:

          Another suggestion for the root cause of the crisis has been put forward. Clinton wanted to make house-ownership more widely available in America, and to enable this, created the ‘ninja’ (no income, no job) mortgage market. The regulators compounded the problem by allowing the packaging-up and selling-on of these super-dodgy mortgages, which happened to such a degree that many home-owners no longer know who holds their title deeds (and neither does anybody else) – a sort of grotesque game of pass-the-parcel. Also, lots of people defaulted on these mortgages, so when the music stopped, somebody had a big pile of debt on their hands, and no idea of who was supposed to be repaying it – even if they could.

          To make matters worse, in the late 1990s the UK the bank regulation system was changed in such a way that nobody was quite sure who was responsible for what. Some ill-advised and greedy idiots in the banking industry took advantage of this and invested heavily in complex financial instruments with American Ninja mortgages as their underlying ‘assets’.

          It is now to be hoped that UK bank regulation is being overhauled properly; whether or not this new regime turns out to be robust enough remains to be seen.

          Like

          • Major Paddy says:

            It sounds like PFI social housing,it walks like PFI social housing,it looks like PFI social housing it must be PFI social housing ************************please dont tell me saint bill(I did not roger that woman with a cigar) clinton simply fluffed over the lack of social housing with a fraud******he cannot be that clever,surely?

            Like

        • 185
          nell says:

          That’s a bit like the last labour government, that was in power for 13 years, blaming everything on thatcher. As indeed it tried to do.

          Nobody believes them though, especially now!

          Like

      • 152
        Neil Kinnock says:

        We’re alright, too!

        P.S. I’ve got my party back.

        Like

      • 222
        Jimmy says:

        Good to see they’ve changed their position on recycling then.

        Like

  41. 134
    Billy Bowden is the greatest umpire ever ! says:

    O/T

    Guido

    I would be grateful if you could confirm that your new system for picking winners of the caption conest is 100% fool proof, and it is one thumb one reader (per post) and thier is not a option for one person to rate the same entry more than once?

    Thanks , If you could answer this then i would be grateful :-)

    Like

    • 157
      Nemo says:

      What’s up Billy do think there is a bit of back handed jiggery pokery going on, surely not on order-order.com, well who would have thought that?

      Like

    • 162
      Billy Bowden is the greatest umpire ever ! says:

      Also, as I have just shat into my sock at the memory of my offensively tiny cock, I’d be obliged if you could call my mum to come round and clean up.

      Like

  42. 135
    Billy Bowden the sockpuppet says:

    I can’t take much more of David Camerom spouting out drivel such as “The Big Society” and “We’re all in this together”

    Clearly he is a nob and is not fit for purpose.

    Like

  43. 149
    Nemo says:

    How much did Dubya pump in the US economy, remember all this started under his watch, like Gordy he pumped money in, which did for a time avert total melt down, the US lend, lend, lend economy had been heading towards the buffers since Bill Clinton was in power, relaxed rules on banking (the bankers wanted it) lending to people who should not have been lent to, using financial instruments not many understood, when Nick Leeson (remember him) got sent down in Hong Kong for bringing his bank down, Barings, no questions were asked when the high profits were reported from their HK office, the managing director said he didn’t know how the system worked. I thought there will be more “Nick Leeson’s” at the time he was sent down, and there was, and if governments don’t start getting their act together and work out a universal banking code, at the present banks do not seem to recognise any boundries or frontiers, it will happen again, they would not like it but there has be to some regulation Basle was supposed to just that but it just watered down.

    Like

  44. 160
    not seen in any party manifesto ''ve ever seen, but the grim reality says:

    I want to unite the people of Britain around unlimited immigration and more debt, now fuck off.

    Like

  45. 168
    Billy Bowden is the greatest umpire ever ! says:

    Socailists are like women, They always leave you skint.

    Like

    • 171
      Mad Hattie Harman's curiously cavernous front bottom says:

      You cannot possibly look after yourself, you are stupid. The state must care for you. Caring for you costs money. Lots of money. More money than you can afford. More money than Britain can afford. We must borrow. This is investment.

      Vote Labour.

      Like

    • 225
      Non believer says:

      We dont all have to pay for it Billy, some of us can get laid by a willing and non paying partner.

      Like

  46. 169
    Ed Balls says:

    “Yes Tom, why don’t you do your own P60s like the rest of the self-employed and businesses you lord over? @devilskitchen @tomharrismp”

    I have never heard of a self employed person either prepare or receive a P60.
    Unless of course the rules for Nevis registered companies state that.

    Pissed again,Guido ?

    Like

    • 180
      Billy Bowden is the greatest umpire ever ! says:

      No, he’s just a useless Hunt who spends far too much time “admiring” his child

      Like

      • 181
        Billy Bowden is the greatest umpire ever ! says:

        I despise what you say but will defend to the death your right to say it.

        Its a shame you would afford me the same right.

        Like

  47. 175
    nell says:

    http://www.dailymail.co.uk/news/article-2007538/As-Ed-Miliband-relaunches-leadership-FIFTH-time-says-I-want-pick-cabinet.html?ito=feeds-newsxml

    red ed apparently relaunched his leadership again for the fifth time today , although the media has hardly noticed this tiresome repeat failed leadership story that seems to be a curious echo of the last days of gordon and his perpetual makeovers.

    And omaha has finally discovered that those keynesian theories cooked up in the cloud cuckoo land of socialism, don’t actually work in practice in the real world.

    The international liberal left appears to be a terminal decline. Is it too early to start a wake for them?

    Like

  48. 176
    not a machine says:

    mmm how long ago were some of us saying USA stimulus was just throwing spending money on short term projects with unspecified ecnomic results , filling in the trough (trying to make believe it should not have been steeper) was only racking up the debt to prolong the misery ! pretty obvious really it would only enable weak growth . Ed was making all those cooler obama noises , spend your way out of a recession using borrowings .

    Ed M “we lost touch with british public” , what rubbish , labour lost touch with our money and our soveignty deliberately , alas there are other matters as well , labour lost touch with , sorry in my book will not do , it has been one long frankfurt school experiment , by all means say sorry to all those people who got busted in the cheap personal credit backwash , say sorry to all those young kids who will find it a struggle and labour dumbed down , by all means say sorry to manufacturing whose many decent paid jobs got wasted on imports , say sorry to the tax payer for running decietful budgets hiding billions off balance sheer , the wonk banks that invested in wonk projects that we are picking the tab up for .

    By all means say sorry , but then when you do, resign and never come peddling your wonk politics on these shores ever again . perhaps seems a bit harsh on the few decent labour mps , but i fail to see why we should just accept half baked appology and they hold office ,its wanton gross destruction of my country and its future spent for a wonk theory.

    I have sick bag at the ready for andrew pravda tommorow .

    Like

    • 177
      Billy Bowden is the greatest umpire ever ! says:

      Labour/ “conservitive” , Not much difference these days lad.

      Like

  49. 183
    nell says:

    http://www.bbc.co.uk/news/uk-politics-13915652

    And here it is! Militwit’s relaunch No.5!!

    And the message? The country is suffering . Why? Well not because of him or the last 13 years of liebour!

    As far as he’s concerned the economic woes we are trudging through at the moment, the overburdened nhs and the top heavy bureacracy costing us, the taxpayer, a fortune, is all the fault of the coalition!

    Wonder what he’ll have to say in re-launch No.6?

    Like

    • 186
      Gordon Duffy says:

      Yaw jawking!!!!

      Like

      • 191
        nell says:

        gordon meanwhile has been in Edin burgh, at the Arm ed For ces Day, today trying to relaunch himself as the sol diers pal!

        LOL!!

        Like

        • 200
          annette curton says:

          Given his past record he could volunteer himself for bayonet practice as a live target.

          Like

        • 205
          Grumpy Old Man says:

          As gordon said,” I have nothing-but praise- for our troops”. one of the few times he told the truth.

          Like

    • 206
      Eeu to me says:

      Heard his “speech” today, it being sent in morse from cloud cookoo land , I bet he could have fitted more lies in if he tried a bit harder, whitewash brush was well used.

      Like

  50. 188
    Billy Bowden is the greatest umpire ever ! says:

    This site wants a final solution for homosexual men.

    Like

    • 192
      nell says:

      Er no .

      This site wants a final solution for left wing liberalism and failed keynesian economics.

      Like

    • 208
      the one and only solution says:

      Bugger them.

      Like

    • 214
      not a machine says:

      er no I want equally horrendus treatment for both the men and women that got us into this marxist nightmare , they should just resign.

      being as those of us who oppose HS2 are now branded luddites , by the transport sec and chinese visist has a possible deal to do construction , Luddites we may be , but if so it will not beneath the transport secretary to answer a few questions about the evidence for the economic case ofr HS2 and how it won out over the other possible rail investment configurigurations , a luddite is perhaps someone who chooses a regressive option , however being as we have had no options , we hardly can have made the wrong choice where none was put forward. As i pointed out our 3 biggest cities will have high rail fare costs under the HS2 proposal , which by 2020 may not where we want to be . Also no freight will use HS2 or travell beyond 125mph yes or no ? and if so how much more expensive will it be ?
      If it does not achieve 30000 passengers per day , will the tax payer subsides it or will fares increase further ?

      luddite or thatcherite take yer pick on the questioned being answered that ask about the economics and not scary fast train ideas in a country where most of the population urban travell is within 200mls and doesnt really need High speed rail when capacity/cost issues are more important.

      Like

    • 216
      MingeMunchersRus says:

      perhaps you could implode Billy to get the ball rolling

      Like

  51. 195
    statechaos says:

    New Balls please

    Like

  52. 197
    Billy Bowden is the greatest umpire ever ! says:

    Actually, scratch that, there are some pretty brutal dildos on the market already.

    Like

  53. 203
    Jackass Straw ( my Dad would n't fight for this Country ) says:

    Will Straw, the former Treasury spin doctor under Gordon Brown

    We in the Liebour party don’t believe in patronage, nepotism or the old boy network. Only the wicked Tories do that.

    Like

  54. 207
    Saffron says:

    I hear that Gordoom of the Buckfast fried Marsbar’s brigade has been trying to attach himself as a brave saviour of our armed soldiers.
    Has this Jock incompetant arsehole no shame whatsoever,this man IMHO is one short of a six pack.
    I don’t honestly know wether their is a medical term which would explain what he suffers from,but I would imagine there is.
    Before you tell me I have noticed that I have used Their/there in the wrong context.
    However back to my rant the man is a disgrace even to his discreditted bunch of economically illiterate fortune seekers.
    Who the hell in their right mind can refer to zero growth,how the hell is zero meaning in the context of growth any growth at all.
    10 years to achieve a Doctorate in What is little more than liebour propaganda seems crap to me and in terms of academic achievement which could benefit the economy of this country seems to me to be useless.
    McBroon and his past cabal of communist traitors to this country are evil people who if we had any sense we would revile.
    finally I do wish that Guido would start to home in more and more on what we are up against with this EUSSR bunch of control freaks who want to take us down their road of of controlling our very exsistance.

    Like

    • 212
      Anything for a Vote says:

      His Beard has also tried the same as has his adopted son Ed.

      The Socialist elite HATE our armed forces and to pretend otherwise is an outright LIE.

      Like

      • 245
        Anonymous says:

        They also hate the population because we are too stupid to understand the glorious vision of a socialist society

        Like

  55. 211
    Saffron says:

    The Liebour party are a bunch of of deliberately engineered party apparatchiks who frankly lost the plot years ago.
    From what they were years ago, they have now become the party of the benefits and immigrants culture to gain votes.
    What legacy are they leaving to liebour stalwarts who where concerned with what was going on.
    Answer nothing.

    Like

    • 213
      Billy Bowden is the greatest umpire ever ! says:

      You could say the same about the current ” conservitive” party.

      Like

  56. 215
    Gordon Brown says:

    I’m a cop killer.

    Like

  57. 220
  58. 221
    Anonymous says:

    That graph doesn’t mean that the stimulus didn’t keep the unemployment rate lower than it would have been otherwise, it means that analyists and economists can’t predict things. Economics isn’t a proper science, it’s more like astrology really. They couldn’t see this mess coming and they can’t predict anything; the only thing they really know how to do is write about what just happened and make our like they’re telling you something you don’t already know. We have no way of knowing what the US unemployment figures would have been had Obama not implemented QE II.

    Like

  59. 223
    pigs in space says:

    Think tanker ….is that Cockney rhyming slang?

    Like

  60. 228
    Ed the shred says:

    It thstarted in America .. errm … itth the right thing to do …errm…

    Like

  61. 238

    It isn’t Keynsianism. Its theft, aka looting, plain and simple. You will find that corporate balances almost exactly match the government deficit. We are taught to think the money go’s to the government but they are robbing the poor to give to the rich. Governments in the West are the debt collecting agencies for the bankers and the rich. Hence no growth. What is required is a good old fashioned “redistribution of wealth” after all that is what is supposed to happen under a genuine “free market.” But everytime you open a paper all you get is a rich tw*t expanding column inches on why he shouldn’t pay any tax, why he should get a bail out, and why building a slave factory in China is so good for us after all. So fat chance of that happening. We have made our own prisons I’m afraid.

    Like

  62. 254
    I hate Blue Labour says:

    And the number of people surprised at this is precisely… zero.

    Said it before he was elected: nice speaker, looks good, no ability to do the job. America’s Tony Blair.

    Like

  63. 255
    DANGER says:

    As usual your ideology has clouded your judgement.

    1. This issue is complex and it is not possible to prove that the stimulus was ineffective using a single chart.

    2. To engage with your argument on its own terms: I do not know where these projections come from; but I have gone back to the US bank stress test scenarios. Since the early stages of the recovery (see, for example, here: http://www.calculatedriskblog.com/2010/03/stress-test-update.html) unemployment has been as bad as, or worse than, the adverse scenario. However, GDP and house prices have been better than the baseline scenario. This suggests that the various crisis-fighting measures have been effective, but unemployment remains higher than standard economic models would predict (likely because firms are reluctant to hire workers in a deleveraging environment).

    3. Looking at the argument itself: Economic projections are notoriously unreliable, and they are likely to be particularly unreliable during a major economic crisis. It is problematic to judge whether the stimulus did or did not work by judging economic outcomes against projections made before the stimulus was enacted, which is what this chart seems to do. Even a backward-looking analysis that attempted to extract a series for unemployment without the stimulus would necessarily be theory-laden.

    Stick to tittle-tattle, it’s what you’re good at.

    Like


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VOTER-RECALL
Find out more about PLMR


Gyles Brandreth writes in his memoirs:

“Sunday, May 10, 1998

Early start: appearing on Breakfast With Frost, to be broadcast from 11 Downing Street. The Chancellor [Gordon Brown] is grouchily amiable, but so earnest — and still biting his fingernails to the quick.

After the show, he took us upstairs to his flat. He lives above No 10, while Blair and family are in the No 11 duplex, which is bigger and more like a proper house.

I was intrigued that, when he took us into his bedroom, the Chancellor rather ostentatiously opened the built-in wardrobes, as if he wanted us to see the women’s frocks that were hanging in there.

They looked quite large, but I don’t think they belong to Gordon. I assume they belong to his girlfriend [Sarah Macaulay, who he later married].

I presume he was keen for us to know that he has one — and that she’s not a ‘beard’. I don’t think he does anything without calculation.”



The British media are Hunts says:

Now the SNP know how UKIP voters feel all the time.


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