Monday, May 12, 2014

SKETCH: Professor Krugman, Where’s the Shark?

Paul Krugman, the Nobel-prize-winning economist is in Oxford until mid-June as the Sanjaya Lall Visiting Professor in Development and Business.

The liberal Princeton/NY Times professor just delivered his inaugural lecture asking the question (the almost-rhetorical question) Do We Face Secular Stagnation?

It follows on from his books The Age of Diminished Expectation, the Return of Depression Economics and articles like Is Capitalism Too Productive? The Myth of Asia’s Miracle and – suggested title – What Are You Laughing At, Can’t You See the State We’re In?

His proposition is that the glory days are behind us, that each recession has been harder to get out of than the last, that we will have extended periods of low-to-no growth, and that under-employment will create “dreary lives” for large numbers of people – because politicians will not listen to him and his $300bn job-creation schemes.

If Labour can get him onto a stage with Ed Miliband, the election will be in the bag. For the Tories.

He talked about the impulses to “austerity” saying that it’s as though governments want to engineer a gratuitous recession in order to have a pre-election year boom, “like the Government has done here” (cosy laughter from the full-to-overflow hall).

Small, bearded, charming, Prof Krugman looks like the oceanographer in Jaws. Remember, that clever fellow, expert in his field, ran up and down the beach warning the pleasure-seekers there was a giant shark out there waiting to devour them.

(more…)

Tuesday, April 15, 2014

Even Labour MPs See Falling Unemployment, Economy Growing

comres-expectations

As the economy grows, Labour’s poll lead disappears…

UPDATE:  Note the 4% of Tories who think unemployment and economic growth are going to get worse are more pessimistic than their LibDem colleagues.

 

Friday, January 3, 2014

IMF Contemplating Mass Expropriation in €-Zone

IMF-exproriation

Christine Lagarde the French chief of the IMF narrowly escaped being charged recently. Her candidacy’s main cheerleader for the IMF was George Osborne, Guido had his doubts at the time. The IMF is searching for a solution for debt laden European states to stop the €uro collapsing. Stop spending more than you tax is considered naive – how will the ruling elites get re-elected if they stop bribing the electorate with their own children’s money? Option 6 in the IMF’s discussion paper on the subject is brutally straight-forward. The final act of financial repression is to steal from everyone who has savings with a 10% wealth tax.

You have been warned now – just like Cypriot political insiders were – don’t keep any capital in €urozone banks. The IMF argues that the element of surprise is essential for the success of a capital levy…

Thursday, September 5, 2013

Brown’s Favourite Economist David Blanchflower Wrong Again
Economist Who Advised Brown To Privatise, Ronald Coase R.I.P.

Yet another installment in the series of David Blanchflower’s Terrible Tips. The former Prime Mentalist’s favourite former appointee to the Bank of England’s Monetary Policy Committee got his faulty crystal ball out again at the end of March, predicting growth for the year of 0.2%. In April he said that a triple dip remains a real prospect. In May he nearly fell over laughing at the suggestion a recovery was in sight. He regularly predicted rising unemployment, when it fell. So did he fare any better this time round?

Well this week the OECD doubled its outlook for UK growth to 1.5%, now the OECD expects Britain to even outstrip Germany and France over 2013. What’s more, in the last quarter, the UK grew at an annualised healthy 4.5%, with growth across all sectors. The fastest for decades. Even Ed Balls now admits we are on the road to recovery…

Ronald Coase Obituary

David Blanchflower is a poor excuse for an economist, compared to Ronald Coase, who sadly died on September 2nd aged 102. The Nobel prize winner enjoys nowhere near as much fame as media-savvy left-wing economists like Blanchflower. Coase should be more famous because it was his idea originally to sell off radio spectrum rights, a policy idea which led to Gordon Brown raising £22.5 billion from the privatisation of the 3G spectrum. The greatest one-day privatisation ever seen in Britain, carried out by a socialist. That was genius… 

Wednesday, April 24, 2013

AP Changes Password

One hacked tweet yesterday and the DOW plunges 100 points, only to regain it all in a matter of minutes. The AP twitter account has been restored this afternoon, the offending tweet deleted, and normality returns to the markets…

Thursday, October 25, 2012

Talking Balls

It was less than fifteen minutes after the GDP news was announced before Balls’ people started calling for more borrowing and spending on the back of the news:

Two hours later they have has managed to scramble together a line:

“A one-off boost from the Olympics is welcome. But it is no substitute for a plan to secure and sustain the strong recovery that Britain desperately needs if we are to create jobs, get the deficit down and make people better off.”

Balls chooses to simply ignore the ONS stating that it only 0.2 of the 1% change was down to the Olympics.

Funny how abnormalities are only considered when the growth is positive.

+++ GDP UP 1% +++
Above Expectations, GDP Flat Year-on-Year

Thursday, October 18, 2012

David Blanchflower’s Terrible Tips

Whenever Gordon Brown’s favourite former appointee to the Bank of England’s Monetary Policy Committee, David Blanchflower, makes a prediction, it’s probably a safe bet to expect the exact opposite to come true. Back in 2009 the out-of-luck economist looked into his evidently faulty crystal ball and predicted that unemployment would top 5 million if the Tories came into power. As of yesterday it stands at 2.53 million and falling. David is very nearly 100% wrong – quite a wide margin of error.

He forecast that unemployment would surge past 3 million to 3.4 million in 2010. It peaked at 2.5 million in 2010.

On Tuesday Blanchflower was at it again, wagering that the new set of unemployment figures would bring bad news:

Lo and behold once again the opposite happened, with unemployment dropping by 50,000 to below 8%. Keep trying David, you might get one right eventually…

Wednesday, October 3, 2012

Mugabenomics: Inflation in UK Higher than in Zimbabwe

Remember when Vince Cable warned that Quantitative Easing (QE) was “Mugabenomics”? Vince flip-flopped on that even before he joined the coalition. Guido remembers when George Osborne said “Printing money is the last resort of desperate governments when all other policies have failed.” In government Osborne has overseen the printing of more money than any other Chancellor in British history. A quarter of the national debt – all this government’s overspending – has been bought by the Bank of England via QE. Guido warned against this madness in 2008…

So it is not a shock that inflation in Zimbabwe (3.63%) is now lower than inflation in the UK (3.66%, August 2011-July 2012). Gold is good.

Tuesday, September 25, 2012

He’s Still Jonah Brown

As we predicted beforehand, the Jonah effect wiped over 100 points off the value of the Dow and saw the NASDAQ experience its worst day since June. If you watch the video closely you’ll see that he even screwed up “ringing the bell” to open Wall Street.

He’s still the accursed one-eyed son of the manse…


Seen Elsewhere

Jack Straw Slams Bercow | Sky News
Putin Shuts Down Red Square McDonalds | Telegraph
Paper Trail Suggests Ashcroft Still Funding Tories | Indy
Bradford Bun Fight Coming | Speccie
Former Minister’s Join ‘Canberra Caterer’ Outcry | The Times
Stop Bercow | The Times
Speaker Cornered | Times
Britain’s Beheaders | Speccie
‘Underclass’ Is Dave’s Fault | Conservative Women
Civil Liberties/Privacy NGO Hires New CEO | Big Brother Watch
Why I Won’t Join UKIP | Dan Hannan


new-advert
Westbourne-Change-Opinion hot-button


Lord Glasman tells it like it is:

“The first thing is to acknowledge that Labour has been captured by a kind of aggressive public sector morality which is concerned with the individual and the collective but doesn’t understand relationships.”



Owen Jones says:

We also need Zil lanes.


Tip off Guido
Web Guido's Archives

Subscribe me to:






RSS


AddThis Feed Button
Archive


Labels
Guido Reads
Follow

Get every new post delivered to your Inbox.

Join 1,418 other followers